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WalletPrep worksheet · Protect yourself

What to do if your identity is stolen

Name ____________________ Date __________

Key ideas

  1. Call the company where fraud happened first. Ask the fraud department to close or freeze the account. Change your passwords and PINs, and note who you spoke with.
  2. Report it at IdentityTheft.gov. The FTC's free site builds a recovery plan, an identity theft report and letters you can send to businesses and credit bureaus.
  3. Speed caps your debit card loss. Report within 2 business days and you owe at most $50. Between 2 and 60 days, up to $500.

Vocabulary

Fraud alert
A free note on your credit report that tells lenders to verify your identity before opening new credit in your name.
Credit freeze
A free block on your credit report that stops most new lenders from seeing it, which makes it hard for a thief to open accounts in your name.
Credit report
A record of your credit accounts, payments, balances and some public records, kept by each of the three credit bureaus.
Collections
When an unpaid debt is handed or sold to a debt collector after missed payments. It can hurt your credit score.
Credit bureau
A company that collects your credit history and sells reports to lenders. The three nationwide bureaus are Equifax, Experian and TransUnion.

Work it out

Dev's debit card is stolen and a thief takes $900 from his checking account. Here is the most he could lose under federal rules, depending on when he reports it.

  1. Taken from checking
  2. Bank must restore (reported within 2 business days)
  3. Most Dev loses
  4. Taken from checking
  5. Bank must restore (reported on day 10)
  6. Most Dev could lose

Check yourself

  1. What should you do first when you spot fraud on an account?

    • A. Close every bank account you have
    • B. Call the company where the fraud happened
    • C. Wait for your next statement
    • D. Pay the charges so your credit isn't hurt

  2. A thief takes $700 with your debit card and you report it within 2 business days. What is the most you can lose?

    • A. $0
    • B. $50
    • C. $500
    • D. $700

  3. How long does an extended fraud alert last?

    • A. 90 days
    • B. 1 year
    • C. 3 years
    • D. 7 years

Your turn

Freeze your credit at all three bureaus, then request an IRS identity protection PIN through your IRS online account. Together they take about 30 minutes and block new accounts and fake tax returns in your name.

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Answer key

What to do if your identity is stolen

Work it out

  1. Taken from checking$900
  2. Bank must restore (reported within 2 business days)− $850
  3. Most Dev loses= $50
  4. Taken from checking$900
  5. Bank must restore (reported on day 10)− $400
  6. Most Dev could lose= $500
  1. If Dev reports within 2 business days of learning the card is gone, his loss is capped at $50. $900 − $850 = $50.
  2. If he waits 10 days, the cap rises to $500, so he could lose $900 − $400 = $500.
  3. Past 60 days after his statement is sent, he could lose all $900. On a credit card, the most he'd ever owe is $50.

Check yourself

  1. B. Call the company where the fraud happened IdentityTheft.gov lists calling the companies where you know fraud occurred as step 1, so they can close or freeze the account.
  2. B. $50 Reported within 2 business days, your debit card loss is capped at $50. The bank must restore $700 − $50 = $650.
  3. D. 7 years An extended fraud alert lasts seven years. You need an FTC identity theft report or a police report to place one.