Money & Debt

Types of identity theft

Identity theft is when someone uses your personal information without your permission to commit fraud The deception of someone(s) with intent to cause damage (not including  forgeries and counterfeiting). or other crimes.

True identity theft

True identity theft is when an account is opened in your name without your knowledge. Thieves use your personal details—like your Social Security number A number that the federal government gives to each U.S. citizen. It keeps track of their earnings and retirement benefits. —to create new accounts, leaving you responsible for the debt. This includes paying for goods and services in your name.

Example: You receive a bill for a credit card you never applied for, indicating someone has opened an account using your identity.

Account takeover

An account takeover involves unauthorized charges on your existing accounts. The thief uses your account information to make purchases or withdraw funds without your consent When someone gives permission for someone else to do something .

Example: You notice unfamiliar transactions on your credit card statement from stores you haven't visited.

Familiar fraud or coerced debt

Familiar fraud or coerced debt occurs when someone you know misuses your information. This can include the use of a child's identity or abuse by an authorized user. A family member or partner may open accounts or make charges without your permission.

Example: A relative uses your Social Security number to take out a loan without telling you.

Identity theft impacts

Identity theft can cause serious problems in multiple areas of life.

Financial loss

You may face direct financial losses due to identity theft:

• Thieves might use your accounts to make unauthorized purchases or withdraw funds without your knowledge or consent, and
• Fraudulent accounts opened in your name can lead to lawsuits to collect the debt.

Emotional distress

The emotional toll of identity theft can be stressful, especially if people don't believe you at first that your identity was stolen. Be persistent and keep clear records, and the situation will improve.

• Handling the aftermath of identity theft can be exhausting,
• The privacy violation can leave you feeling vulnerable and violated, and 
• Interacting with financial institutions, credit bureaus, and law enforcement can be frustrating and overwhelming.

Credit damage

Identity theft can harm your credit standing The right to file a lawsuit or make a particular legal claim based on how the person is affected. , leading to long-term consequences:

• Unauthorized debts and missed payments reported under your name can significantly lower your credit score and result in having housing and loan applications denied,
• Even if you are approved for credit, you may face higher interest rates and less favorable loan terms, and
• Some employers and insurance companies review credit histories, which can affect job opportunities and insurance premiums Money that must be paid every month, such as for health insurance .

Learn how to dispute identity theft with the credit bureaus.

Immediate steps to take if you're a victim of identity theft

Note: If you have a case filed against you in Illinois court, there are two special affidavits you must use. Please see the section below about responding in court to identity theft.

Finding out that someone might be using your personal information can be scary, but it is a problem that you can fix. It's important to act quickly to reduce the damage and start fixing the problem. Here are the first things you should do:

1. Obtain a copy of your credit reports and review them for other unrecognized activity

Get copies of your credit reports to look for any other suspicious activity or accounts you don't recognize.

• First, get a copy of your reports. Visit AnnualCreditReport.com or call 1-877-322-8228 to request free copies of your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion.
• Check for accounts you didn't open, inquiries from companies you haven't contacted, unfamiliar debts, and personal information changes.
• Save copies of your reports and note any incorrect information to address later.

2. Place a fraud alert on your credit reports

Putting a fraud alert on your credit reports makes it harder for identity thieves to open new accounts in your name. Contact one of the three main credit bureaus—Equifax, Experian, or TransUnion—to place a fraud alert. The one you contact must tell the other two. A fraud alert lasts for one year and can be renewed. With a fraud alert, you can get a free copy of your credit report from each bureau.

• Equifax: 1-800-525-6285 or www.equifax.com
• Experian: 1-888-397-3742 or www.experian.com
• TransUnion: 1-800-680-7289 or www.transunion.com

You can also place a Security Freeze on your credit to make it more difficult for identity theft to occur.

3. Request information from creditors

You have the right to get information about fraudulent accounts and transactions made using your identity. The Fair Credit Reporting Act (FCRA) gives you the right to get copies of applications and records related to the fake accounts. 

To do this, write to the company and include proof of your identity (like a copy of your driver's license) and proof of the identity theft (a copy of your police report When a police officer writes a description of what happened at an accident and FTC Affidavit). Getting the documents that the companies relied on can help you see how your information was used and assist in disputing the fake accounts.

4. File a police report

Filing a police report creates an official record of the identity theft, which is important when disputing fake accounts and charges. In Illinois, the law says that your local police department must take your identity theft report and give you a copy. Go to your local police station and bring any proof you have, like fake account statements or collection notices. Make sure to get a copy of the police report for your records and provide it to companies and government agencies.

5. Complete an FTC Identity Theft Affidavit

The Federal Trade Commission (FTC) offers help to identity theft victims. Visit IdentityTheft.gov to report the identity theft and create an account. Fill out the Identity Theft Affidavit by providing details about the fake accounts and any information you have about the theft. The website will give you a personal recovery plan based on your situation. Together, the FTC Affidavit and your police report make up your Identity Theft Report, which you can use to dispute fraudulent information on your credit reports.

6. Close fake accounts and dispute unauthorized charges

If you suspect identity theft, contact all banks, credit card companies, and other places where fake accounts were opened or unauthorized charges happened. Tell them in writing (by electronic message or by letter) that you did not open these accounts or make these charges, and ask them to close the accounts immediately. Include a copy of all of your documents, including your police report and FTC Affidavit. For your existing accounts, report any charges you didn't make and dispute them. Also, close any accounts that were affected.

You have 60 days to dispute your statements, so make sure you dispute any activity as soon as possible. 

7. Dispute inaccurate information on your credit report

You can send a letter to the credit reporting bureaus to remove inaccurate information from your credit reports. 

8. Contact any government agencies involved

If you believe your identity or your accounts were used in connection with any of the following, make sure to notify the agencies involved and provide all of your documentation:

• Report tax fraud to the Internal Revenue Service (IRS)
• Alert the Postal Inspection Service to mail theft
• Contact the Social Security Administration if your social security number was compromised
• Inform the Illinois Secretary of State if your driver's license or state ID was misused

9. Continue to monitor your credit reports

Once you report fraud, it may take a few weeks for companies to get back to you with dispute results. 

A company may not accept your claim of identity theft. If that happens, dispute a second time and also reach out to a consumer advocate lawyer Someone who represents clients in courts or who gives legal advice . If a company does not fix the problem and remove the fraudulent charges or accounts, you may be able to file a lawsuit against them.

Make sure to continue to regularly check your credit reports for new signs of unauthorized activity. You should also keep records of all documents showing how this identity theft impacted you, including how you were harmed while the credit bureaus or other companies failed to fix the problem.

Disputing unauthorized charges on your credit card or debit card

Discovering unauthorized charges on your credit or debit card can be alarming. You should act quickly and understand how credit cards, bank transfers, and other payment methods like Zelle and Venmo can be disputed.

The Fair Credit Billing Act requires credit card companies to investigate disputes and remove unauthorized transactions. You must report billing errors or unauthorized charges in writing within 60 days of the statement showing the error. The credit card company is required to investigate and resolve the dispute within two billing cycles, not exceeding 90 days.

For debit cards and electronic bank transfers, the Electronic Fund Transfer Act provides protection for your bank account as long as you report the issue right away:

• If you report the loss or theft of your debit card in writing within two business days after learning of it, your liability is limited to $50,
• If you report the loss after two business days but within 60 days, you could be liable for up to $500, and 
• If you wait more than 60 days, you could lose all the money taken from your account. 

Report unauthorized transactions within 60 days after your bank sends the statement showing the error. The bank must investigate and resolve the issue, generally within 10 business days, but may take up to 45 days if necessary, as long as they credit your account during the investigation.

How to dispute bank and credit card charges

To dispute unauthorized charges, you should first review your statements carefully. Regularly checking your credit card and bank statements helps you detect unfamiliar transactions early, which is key to limiting your liability. 

If you notice an unauthorized charge, contact your card issuer or bank immediately by calling the customer service number on the back of your card or on your statement. Inform them of the unauthorized charge(s) and any lost or stolen cards. It is important to note the date and time of the call, the representative's name, and what was discussed for your records.

After the initial contact, you should follow up in writing. Send a written notice to your card issuer or bank's billing inquiries address (not the payment address). Include your name, account number, the date and amount of the disputed charge, and an explanation of why you believe the charge is unauthorized. Attach copies of any relevant documents, but keep the originals. Sending the letter via certified mail A document delivery service such as the US Postal Service that sends a party a receipt as proof that the documents were mailed and delivered with a return receipt Proof of delivery with the recipient's signature, and the date and time of delivery provides proof of delivery.

During the investigation, monitor the process closely. For credit cards, you are not required to pay the disputed amount, and it cannot be reported as delinquent. For debit cards, the bank may require you to complete an affidavit or additional forms and may provisionally credit your account while investigating. Stay in communication with your card issuer or bank for updates and provide any additional information they request promptly.

Upon resolution, if the investigation is decided in your favor, the unauthorized charges should be removed from your account, and any related fees or interest charges should be corrected. If the dispute is denied, you should receive a written explanation, and you may consider escalating the dispute or seeking legal advice from a consumer advocate lawyer.

How to dispute payment services charges like Zelle and Venmo

When dealing with unauthorized transactions on payment services like Zelle and Venmo, it is important to understand that these services may offer less protection compared to traditional bank transactions. 

Zelle transfers are immediate and cannot be canceled once sent. Zelle advises that it is intended for sending money to people you know and trust. Banks may not reimburse for unauthorized transfers if you were scammed into sending money. 

Venmo transactions are also quick and typically cannot be canceled once sent. Venmo's User Agreement states that it is intended for personal, not business, use unless you have a business profile.

If you discover unauthorized activity on these services, report it immediately:

• For Zelle, reach out to your bank, as Zelle operates through participating banks. 
• For Venmo, use the in-app support or contact Venmo's customer service. 

Provide details about the unauthorized transaction, including any relevant information or screenshots. Even if the payment service does not offer reimbursement, you can dispute the transaction with your bank under the EFTA. Reporting the unauthorized transfer as soon as possible is critical to limiting your liability.

To protect yourself against scams, only send money to people you know and trust. Verify unexpected requests for money through another method, and never provide passwords or verification codes to anyone.

If you are not satisfied with the resolution, you can file a complaint A written statement to start a lawsuit that says what the defendant did with the Consumer Financial Protection Bureau (CFPB) by submitting a complaint online at www.consumerfinance.gov/complaint or by calling (855) 411-2372. You should also speak to a consumer advocate lawyer.

Responding to a lawsuit for consumer debt that was identity theft

Illinois Supreme Court Rule 280.5 outlines what you need to do if you’re sued for a debt that isn’t yours and is the result of identity theft. This guide will help you understand how to respond using two required affidavits.

Step 1: Complete the two required affidavits

Illinois Attorney General Identity Theft Affidavit

• This affidavit provides detailed information about the identity theft.
• It includes your personal details and any known information about how your identity was stolen.
• Provide all requested information about yourself and details about the identity theft.
• Be as thorough as possible to help establish your case.
• Do not file this affidavit with the court because it contains sensitive personal information.

Supreme Court Identity Theft Affidavit (Credit Card or Debt Buyer Collection Action)

• This is a form approved by the Illinois Supreme Court.
• It notifies the court and the plaintiff A person or party that starts a lawsuit (the party A person or business involved in a court case in a role like plaintiff, petitioner, defendant, respondent, or intervenor. suing you) that you are a victim of identity theft and not responsible for the debt.
• Include any relevant information that supports your claim.
• You must file this affidavit with the court.

Step 2:  Serve both affidavits to the plaintiff

You must serve Giving court documents to someone both affidavits to the plaintiff or their attorney. This informs them that you are asserting identity theft as your defense.

You can send the affidavits by mail, personal delivery, or any method acceptable under court rules. Keep proof of how and when you served the documents (e.g., certified mail receipt).

Step 3: File only the Supreme Court Identity Theft Affidavit

Only file the Supreme Court Identity Theft Affidavit. Do not file the Illinois Attorney General Identity Theft Affidavit with the court because it contains your sensitive personal information.

E-File the affidavit as soon as possible after realizing the debt is not yours. Ideally, file it before your response A formal written answer to the plaintiff or petitioner's written statement to the lawsuit is due. There is no fee to file this affidavit.

If you need help, contact Illinois Court Help and the clerk's office in the court where the lawsuit was filed.

Step 4: Await a response

The plaintiff has 90 days to respond after you serve the affidavits.

The possible outcomes are: 

• Case Dismissal: If the plaintiff does not file an affidavit contesting your claim within 90 days, the court or the plaintiff should dismiss the case, or
• Plaintiff's Affidavit: If the plaintiff believes you are responsible for the debt, they must file an affidavit stating facts that suggest you are not a victim of identity theft.

Responding to a lawsuit filed against you by mistake or due to identity theft (in a non-consumer debt case)

If a lawsuit has been mistakenly filed against you, or you are a victim of identity theft in a non-consumer debt case, it's important to take immediate action to protect your rights. Here’s a guide on how to respond:

Step 1: File a motion to dismiss

File a motion to dismiss under Section 2-619 of the Illinois Code of Civil Procedure Rules a party must follow when they are participating in a lawsuit . This motion allows you to ask the court to dismiss the case because there is a legal reason, such as mistaken identity or identity theft, that makes you not liable.

Step 2: Present evidence of mistaken identity or identity theft

In your motion, you need to present all relevant evidence Anything used to show that something is true proving you are not responsible for the lawsuit. This may include:

• An affidavit: This is a sworn statement from you, explaining why the lawsuit is incorrect and detailing the facts that show you are not the liable party.
• Written proof: Provide any documents that support your claim, such as a police report, emails, contracts, identification records, or correspondence.

Step 3: Submit the motion and affidavit and obtain a hearing date

Once you have gathered your evidence and completed your affidavit, file your motion to the court as soon as possible. Attach all documents you have as exhibits, but make sure to redact any personally identifiable information. Then attend any scheduled hearings to present your case. Once your motion is heard, you can ask for a copy of the court order, which is further proof that you were the victim of identity theft.

Read more about filing a motion in court.