If you've ever lost your wallet, you know that sinking feeling in the pit of your stomach. But imagine that instead of your wallet, it's your entire financial identity that's gone missing.
That's the reality for victims of credit card fraud. And it’s more common than you think: The Federal Trade Commission (FTC) received
over 400,000 reports of credit card fraud from Americans in 2023 alone.
Finding out there are unauthorized credit cards in your name is alarming, but there's no need to panic. There are steps you can take to regain control of your credit and protect your finances from further harm.
Feel confident answering the question, "What should I do if someone opened a credit card in my name?" Learn how to spot signs of credit card fraud, the steps to take if you've been targeted, and how to safeguard your credit going forward.
How to know if someone opened a credit card in your name
If you suspect you’re the victim of identity theft, the first thing you need to know is how to check if someone opened an account in your name. It starts with reviewing your credit reports right away.
You can get free credit reports from the three credit bureaus — Experian, Equifax, and TransUnion — by visiting
AnnualCreditReport.com. You get one free report from each bureau every year.
Once you have your reports, go through them with a fine-tooth comb. Triple-check everything for
accounts you don't recognize and balances that seem off. Be thorough, because spotting problems early can help you avoid more serious issues in the future.
Keep in mind that not every unfamiliar item on your credit report is necessarily fraud. Sometimes, it's just an error. But if you spot something that doesn't look right, contact your credit card issuer immediately and
dispute the charge.
Even if you don't have a reason to believe you’re a victim of credit card identity theft, it's still a good idea to check your credit reports regularly. This habit gives a clear picture of your financial health and lets you catch any issues early on, whether it’s something as serious as fraud or just a simple error.
5 signs someone opened a credit card in your name
When someone opens a credit card in your name, they usually leave a trail — and you don't have to be a detective to follow it. Here are some common signs that someone opened a credit card in your name without your knowledge:
Your credit score takes an unexpected dive. A sudden drop in your credit score could mean someone has opened an account in your name and racked up charges.
You get messages about an account you don't recognize. Receiving texts, emails, or letters about a credit card you didn't apply for is a red flag.
A credit application gets turned down. If you're suddenly denied credit when you had
good credit before, it could be that someone else has been using your name to open new credit card accounts.
Unfamiliar bills in your mailbox. Getting a bill for a credit card account you don't remember opening is a clear sign that something's not right.
Debt collector calls. If you're contacted about unpaid bills for accounts you never opened, it could mean someone else has been using your identity.
Next steps: Your credit card fraud checklist
If you've confirmed that the irregularity on your credit report is fraud and not an error, it's time to take action. Here's what to do:
Get in touch with your credit card company. Call the fraud department of your credit card issuer right away. They can start the process of removing fraudulent charges from your bill and guide you through the next steps to protect your account.
Put your account on ice. To prevent anyone from making new charges while you sort things out, ask your issuer to freeze your credit card.
Change your passwords. Change the passwords for all your financial accounts, especially if you use the same password across multiple sites. Use strong, unique passwords for each account to boost your security.
Put your credit on lockdown. Contact all three credit bureaus to place a
credit freeze on your reports. This makes it much harder for anyone to open new accounts in your name, since most creditors want to see your report before approving new credit. Don't forget to unfreeze your accounts once the situation is resolved and you're ready to apply for credit again.
File a report with the FTC. Head to
identitytheft.gov to report the fraud. You'll get an FTC Identity Theft Report, which you'll need for the next steps. If the fraud is significant, you may also want to file a police report.
Shut down any new accounts. If the fraudster opened other accounts in your name, contact those companies to close them immediately.
Challenge unauthorized charges. Dispute any fraudulent charges with the credit card companies. Most have zero-liability policies, meaning you won't be responsible for charges you didn't make.
Clean up your credit report. Get in touch with the three credit bureaus to remove fraudulent accounts from your credit report and get your credit score
back to where it should be.
Set up a fraud alert. Contact a credit bureau to place a free one-year fraud alert on your credit report, which requires businesses to take extra steps to verify your identity before issuing new credit in your name. You only need to inform one bureau; they’ll inform the other two on your behalf.
How to protect yourself from credit card scams
Dealing with credit card fraud isn't fun, and dealing with it more than once is even worse. Luckily, there are steps you can take to
protect yourself from future scams. Here are some strategies to keep your financial information safe and secure:
Keep a close eye on your credit. Regular
credit monitoring is the key to catching fraud early. One of the best ways to do this is to take advantage of free tools like EarnIn's
Credit Monitoring tool to stay on top of changes to your credit score.
When something seems off, you can request your report to see the details of recent activity.
Regularly update and secure your devices. Keep your computer, smartphone, and other devices up to date with the latest security patches. Install and maintain reputable antivirus software to help protect against malware that could steal your financial information.
Think twice about using public Wi-Fi. Avoid using public Wi-Fi networks for financial transactions. These networks are often unsecured, making it easier for scammers to intercept your information.
Try virtual credit cards. Many card issuers offer virtual credit card numbers for online shopping. These temporary numbers are connected to your account but keep your real card number hidden, adding an extra layer of security when buying things online.
Shred sensitive documents. Don't just toss old bank statements or credit card offers in the trash, especially if they contain vulnerable information like your social security number. Shred them to prevent dumpster-diving identity thieves from getting their hands on your information.
Track your finances with EarnIn’s free Credit Monitoring
If you’ve discovered that someone opened a credit card in your name, it’s crucial to take action to protect your financial health. With EarnIn’s free Credit Monitoring tool, you can keep a close eye on your credit report to stay more aware of any suspicious activity.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out. Calculated on the VantageScore 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. EarnIn services may not be available in all states. Learn more:
https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf
