If you notice that someone opened a credit card in your name, follow this guide to close the account, avoid damage to your credit and protect yourself from similar types of fraud in the future.
1. Contact the Credit Card Issuer
The first thing you should do is contact the card issuer's fraud department. Let them know that you're a victim of identity theft and that someone stole and used your identity to open the credit card.
If you're suspicious that someone opened an account because you received an email, text or letter about the credit card or recent charges, it may be best to ignore those messages. They could actually be part of a phishing scam that's designed to trick you into sharing your personal information. Instead, look up the company's contact information online and call the customer service line to get more information.
Once you report the fraud, the card issuer may close the account and start an investigation to verify the fraud. Keep track of when you made the call and the customer service representative's name.
If the company doesn't close the account right away, ask it to put a hold or freeze on the account to stop new charges. You could try contacting the issuer again after you have an identity theft report or police report.
Learn more >> How to Check for Identity Theft
2. Report the Identity Theft
Next, report the identity theft to the authorities:
- Federal Trade Commission (FTC): You can submit an identity theft report to the FTC at IdentityTheft.gov or by calling 877-438-4338. The FTC will create a personalized recovery plan for you and give you an identity theft report that you can use when contacting creditors and credit bureaus.
- Local police department: Filing a police report can also be helpful if the credit card issuer doesn't want to close the account, or if you want to add an extended fraud alert to your credit reports. The police also might be able to investigate and help if you suspect that the fraudster lives near you.
The FTC also runs ReportFraud.ftc.gov, which you can use to report fraud and scams. Although your identity theft led to a type of credit card fraud, the IdentityTheft.gov website is a better fit if someone opens a credit card in your name.
Learn more >> How Does Identity Theft Happen?
3. Review Your Credit Reports for Fraud-Related Items
Hopefully, the fraudulent credit card is the only account that someone opened in your name, but it could be just the tip of the iceberg.
Check all three of your credit reports from Experian, TransUnion and Equifax to look for potential signs of fraud:
- Credit cards and loans that you didn't open
- Collection accounts for accounts that you didn't open or bills you didn't owe
- A hard inquiry with a creditor when you haven't applied for a new credit account or credit limit increase
You can request a free copy of your credit reports from each credit bureau weekly on AnnualCreditReport.com. You also have the right to additional free copies in certain circumstances, such as when you believe there's an error in your credit report due to fraud.
Additionally, Experian offers free access to your Experian credit report with daily updates and free credit monitoring. The monitoring alerts can tell you when someone applies for or opens a new account in your name, which could help you shut down the fraudulent account quickly.
Learn more >> What to Look for When You Review Your Credit Report
4. Dispute Fraudulent Information With the Credit Bureaus
If the credit card issuer closed the credit card account, it should also stop reporting the account to the credit bureaus. However, you have the right to dispute fraudulent accounts and information on your credit reports.
You'll need to send separate disputes to each of the three credit bureaus, and they all offer methods for submitting disputes online, by mail or on the phone.
You can start the process online with Experian in the Dispute Center. However, you may need to contact Experian by phone or mail when you're disputing information related to identity theft. The number is listed below, and here's a link to Experian's form and instructions for mailing disputes.
| How to Dispute Credit Report Items | |||
|---|---|---|---|
| Experian | TransUnion | Equifax | |
| Online | Dispute website | Dispute website | Dispute website |
| Experian P.O. Box 4500 Allen, TX 75013 | TransUnion Consumer Solutions P.O. Box 2000 Chester, PA 19016-2000 | Equifax Information Services LLC P.O. Box 740256 Atlanta, GA 30374-0256 | |
| Phone | 855-414-6048 | 800-916-8800 | 888-378-4329 |
Once a credit bureau receives your dispute, it will contact the credit card issuer to verify the information. When the investigation is complete, it will provide you with a response and remove any account that is confirmed to be fraudulent.
5. Take Additional Security Measures
After dealing with the fraudulent credit card, you also have the right to place a fraud alert and add a security freeze, also called a credit freeze, to your credit reports to help keep someone from opening another credit card or taking out a loan in your name. Here's how each of the options work.
| Fraud Alerts and Credit Freezes | |||
|---|---|---|---|
| Initial Fraud Alert | Extended Fraud Alert | Credit Freeze | |
| Cost | Free | Free | Free |
| How long it lasts | 1 year | 7 years | Indefinite |
| Who can use it | Anyone | Victims of fraud or identity theft | Anyone |
| What it does | Instructs creditors to verify your identity | Instructs creditors to contact you by phone or in person | Limits access to your credit reports and scores |
| Other impacts | Removed from prescreened credit and insurance offers for six months | Removed from prescreened credit and insurance offers for five years | Removed from prescreened credit and insurance offers for two years |
Initial Fraud Alert
An initial fraud alert or temporary fraud alert stays on your credit reports for a year. However, you can renew the alert for another year, and there's no limit to how many times you can renew.
You only need to contact one of the credit bureaus to add a fraud alert to your credit reports: It will forward your request to the other two bureaus, which will also add alerts. The alert warns creditors that you might be the victim of identity theft and instructs them to verify your identity before opening a new account in your name.
Extended Fraud Alert
An extended fraud alert lasts for seven years, but you'll need to submit a copy of your FTC or police report when you request this alert. Similar to temporary fraud alerts, you only need to submit the request to one of the bureaus. However, if you want to remove the alert early, you'll need to contact each bureau separately.
The extended fraud alert puts a higher level of protection in place because it instructs creditors to contact you by phone, in person or via another method of your choosing if it receives a credit application in your name. If the company can't reach you, it might decline the application or request for credit.
Credit Freeze
Freezing your credit limits access to your credit reports. When your credit report is frozen, the credit bureau won't release your report—or a credit score based on the report—to creditors that request your credit while reviewing an application for a credit card or loan. As a result, creditors will generally deny or move the application to pending, which could keep someone from opening an account in your name.
Unlike fraud alerts, you'll need to freeze your credit at each of the bureaus separately. You will also need to remember to unfreeze your reports at the bureaus when you want to apply for a new account. However, you can schedule temporary thaws, and the bureaus will automatically refreeze your reports at the end of the thaw.
| Adding and Lifting Credit Freezes | |||
|---|---|---|---|
| Online | Phone | ||
| Experian | Experian Freeze Center | 888-397-3742 | Experian Security Freeze P.O. Box 9554 Allen, TX 75013 |
| TransUnion | TransUnion Service Center | 888-916-8800 | TransUnion P.O. Box 160 Woodlyn, PA 19094 |
| Equifax | Equifax Consumer Services Center | 888-298-0045 | Equifax Information Services LLC P.O. Box 105788 Atlanta, GA 30348-5788 |
How Does Identity Theft Affect My Credit?
Identity theft doesn't directly affect your credit reports or scores. However, identity thieves and fraudsters can use your personal information to commit crimes that could affect your credit and your finances in general. For example, they might:
- Open new credit accounts: The most direct impact on your credit could happen if someone opens a credit card or takes out a loan in your name. The application and new account could hurt your credit score, and the fraudster will likely max out the credit card without making any payments. The high balance and late payments could further damage your credit, as could a collection account if you don't notice the fraud before the creditor sends the past-due account to collections.
- Delay your tax refund: If fraudsters use your information to file a tax return in your name, that could lead to delays when you try to file your legitimate return. It might take months—or years—for the IRS to resolve your case and send your refund. If you were planning to use that money to pay down debt, you'll miss out on the potential credit score increases that could come from paying down credit cards and loans.
- Drain your time and energy: Even if the fraudsters don't use your personal information in a way that affects your credit, dealing with identity theft can be exhausting. You might forget to keep up with other parts of your life, and missed payments could lead to extra fees or hurt your credit.
Learn more >> What Can Identity Thieves Do With Your Personal Info?
How to Avoid Credit Card Fraud
Freezing your credit reports is one of the most effective free ways to prevent someone from opening a new credit card in your name. But you can also take steps to protect yourself from other types of credit card fraud, such as when someone steals your card's information and then makes unauthorized purchases. For example, you could:
- Use contactless payment methods: Tapping your card or using a digital wallet could be safer than inserting your card into a point-of-sale terminal. Swiping your card can be especially dangerous because skimming devices could steal your card's info.
- Watch out for sketchy websites: Someone might create a fake e-commerce store to steal your credit card's information. Be wary if the site offers unexpectedly low prices and you got to the website from an ad on social media.
There's no foolproof method for keeping your card's information safe. Someone might steal it as part of a data breach or buy it on the dark web. Fortunately, credit cards have zero liability fraud protections, and you generally won't have to pay for unauthorized purchases if you don't hesitate to report the fraud.
Some credit card issuers let you add alerts to your cards, such as a text message or push notification if there's a new purchase or balance transfer. These can help you quickly spot fraudulent activity and lock your card to prevent new transactions.
Learn more >> Steps to Fight Back Against Identity Theft
Put Protective Systems in Place
You can follow the steps above when someone fraudulently opens a new credit card in your name. But ideally you can avoid the situation altogether. Adding a fraud alert or security freeze to your credit reports could help. And free credit monitoring can alert you when someone applies for or opens an account.
You can also look into identity theft protection services. Experian's paid membership program can monitor multiple databases and can warn you about potentially suspicious activity, such as new credit applications, identity verification requests, banking activity and change-of-address requests. These alerts can help you discover and respond to different types of fraud, and many identity theft protection services include identity theft insurance and fraud resolution support.