subject: 4 Options In Protecting Yourself From Credit Fraud [print this page] There are several different options that fraudsters use to take advantage of credit that is not in their name. There are several tools that you can use to help protect yourself from fraud. Protection from credit card fraud is essentially possible with the following methods and they will allow you to detect and prevent any fraud that is currently underway.
What to Do About Credit Card Fraud
Credit card fraud may be the first thing you find when you try to apply for a line of credit or a loan. A notice of previous accounts in bad standing is something that someone would not wish to hear when they decide to open such an account. The first thing that you should do to protect yourself from these types of fraud is check your credit reports. There are 3 major credit reporting agencies which are required to give you a free report once a year and they are Experian, Equifax and TransUnion. Using one to check up on your credit score will give you information on open accounts and any issues that they may have. Contact creditors immediately and tell them about the fraud as your first step in protecting your account. They should be able to freeze the account and lead an investigation.
Joining a Credit Reporting Program
There are several credit reporting programs available on the market. They monitor your credit score and inform you on changes to your file. They will contact you to confirm that you have really opened an account with a certain creditor. You can set up a form of credit card fraud protection in this manner and help to prevent fraud from occurring. If an account that has been opened in your name is reported and you are not the one that opened it, the credit reporting program will take the measures to contact creditors and close the account right away. This is one of the best options as it can prevent losses for the creditor and ensure a clean record for you.
Getting Non Credit Alerts
Even if you are going to be monitoring your credit accounts, there is an opportunity for people to still open accounts at businesses, apply for jobs and even use your good name for their benefit. These are non-credit based problems but they can easily escalate to debt which can land you in a credit bing. Protection against credit card fraud is not the only thing that some credit reporting programs will do. Some will take measures to protect you from non-credit account monitoring.
Credit Card Fraud Management
If you are a victim of credit card fraud, the next step is to work with a fraud management service. You will be able to get in contact with the debtors to discuss your options. Closing accounts at banks and other lending institutions is the first and most important step. You may be required to pay off the balance but in many cases, the accounts will be closed and an investigation into the fraudulent usage will be taken. People who falsely claim credit card fraud will be punished on a federal level so only real victims should use a fraud management system.
