Learning that your identity has been compromised can be alarming, as you may worry about the impact that it can have on your credit and financial accounts. It’s important to understand, however, that there are steps you can take to help mitigate potential identity fraud before it occurs. If you’re unsure what you should do after identity theft, the following blog explores what you should know and the importance of working with a Michigan new account fraud lawyer to help you navigate these complicated legal matters and fight to reclaim your identity.
Are Identity Theft and Identity Fraud the Same Thing?
Though they are often used interchangeably, it’s imperative to understand that identity theft and fraud generally refer to two different acts. In general, you’ll find that identity theft occurs when an unauthorized party gains access to your sensitive personal information and uses it to access your accounts. Identity fraud, on the other hand, occurs when someone uses your identity to commit fraud, such as opening accounts in your name or filing your taxes to receive your refund. Identity theft is typically a precursor to identity fraud.
For example, a hacker commits identity theft when they breach a government database to steal your information, like your social security number, date of birth, and full legal name. However, they may then sell it on the dark web to someone who uses that information to commit fraud, such as taking out an auto loan in your name.
What Should I Do After My Identity Is Compromised?
If your identity has been compromised, it’s important to take the necessary steps to mitigate the potential of fraud. Generally, one of the first things you should do is file a report with the Federal Trade Commission and your local police department. These reports can be beneficial in disputing any fraudulent accounts that could open in your name.
Next, you should contact the credit reporting agencies to request that a fraud alert or credit freeze be placed on your account. As the name suggests, a credit freeze places a full hold on your credit, meaning no one can access your report to run a check unless you have authorized it. This is ideal for those who are not actively applying for credit. However, if you are actively applying for credit, you may want to place a fraud alert instead. This serves as a warning to all lenders that your information has been compromised and to confirm your identity before opening accounts in your name.
Can I Seek Compensation as a Victim of Fraud?
In the event you are a victim of identity fraud, you’ll find that the damages you can suffer are extensive, leaving you wondering whether or not you are eligible to pursue compensation. Unfortunately, identity theft is a difficult-to-prosecute crime, meaning it can be challenging to locate the person responsible, especially as many of these individuals may not even reside in the United States. However, in the event they are located, the police can prosecute them, and you are able to file a civil lawsuit against them for the damages they have inflicted. This includes both financial and emotional damages.
In some instances, you may be able to seek compensation in the event that a company failed to protect your information in a data breach, leading to subsequent identity theft and fraud. This is because companies, whether they are online retailers, doctors’ offices, or government agencies, have a responsibility to safeguard their clients’ information. Failure to do so can result in lawsuits.
As you can see, identity theft can lead to identity fraud, which can cause significant issues for the victims of these crimes. That is why it is imperative to work with an experienced attorney with Lyngklip & Associates. Our team understands how overwhelming identity theft can be to navigate, especially when it results in fraudulent activity on your accounts. That is why our team will do everything possible to help you through these matters. Contact us today to learn more.
