Practical Tips on Avoiding and Recovering From Credit Fraud

We often read and hear warnings regarding credit fraud. This is because there is an alarming increase in the number of incidents and reports of people who got ripped off by scam artists and unscrupulous credit organizations. They do not just lose their identities but also their credibility as borrowers How come?

Well, unscrupulous individuals and firms steal credit information of other consumers for their personal gain. What they do is use credit profiles of other people so that they can open new credit accounts. Then they will run large balances on these and eventually they will leave their victims with large financial obligations.   While most banks do not collect payment on fraudulent charges, the biggest challenge is proving that those charges were not yours.

So, how can we prevent getting ripped off by these people and by their cunning activities? Below we have listed several measures that we can all use to avoid succumbing to credit fraud.

Practical Means to Avoid Credit Fraud

1. Regularly check your credit file. One of the best ways to avoid becoming a victim to credit fraud is to regularly check your credit report. This is a very easy thing to do, since you will just need to contact any of the three credit bureaus to request for a copy of your credit file.

Once you receive your report, you need to scrutinize its contents carefully. Check your payment history as well as the credit lines you have taken. If you see a suspicious credit account, which you have never taken, send a credit dispute letter to a credit reporting agency.

You can also file a formal complaint to the Federal Trade Commission FTC can provide you helpful information that will address your concerns  You can also report the incident to the police.    Authorities can assist you in investigating and validating your suspicion of credit fraud.

Regularly checking your credit report can also help you see rooms for improvement. If you have an excellent credit rating, then resolve to maintain it that way. If you have an average credit score or a bad credit history, you may decide to get free credit repair services just so you can increase your credit score.

2.  Become well-aware of the illegal activities of scam artists. Read reports of people who have been ripped off by scam artists. We can also watch television programs and online videos that provide detailed investigation on fraudulent machinations of people and agencies. By becoming aware of these illegal activities, we can avoid them so as not to become victims of credit fraud.

3. Perform damage control. If credit fraud inflicted great damage to your credit history, send a formal letter to the credit bureaus explaining the situation.  The credit bureau must conduct an investigation to verify that you have been a victim of fraud.  However, should the credit bureau refuse to take action, a consumer may consider filing a lawsuit, but must be able to prove that the charges has been illegally committed by identity thieves

If you have been a victim of credit fraud, remember that you must learn from your experience. Be more cautious and take preventive measures so that you can avoid succumbing to credit fraud again.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010

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