Identity restoration: What to do after identity theft

You get an alert saying your Social Security number, email address or other personal information showed up in a breach. Your first thought may be, What did someone do with it? I get why that can be unnerving. An alert can sound serious without telling you whether a criminal actually opened an account, took over something you already use or did nothing at all.

The first thing I want you to know is that exposure and identity theft are not the same thing. Exposure gives you a reason to pay attention. Identity theft means someone has actually misused your information. And if that happens, getting your identity back in order can turn into a lot of work.

Here's how identity restoration actually works and what I recommend doing if you suspect someone has misused your information.

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IS YOUR SOCIAL SECURITY NUMBER ON THE DARK WEB?

Identity monitoring is the early-warning side of identity protection. Depending on the service, monitoring may watch for suspicious activity involving your credit files, financial accounts and places online where personal information could surface. The FTC explains that credit monitoring typically watches your credit report for changes such as new accounts or inquiries. Identity monitoring may look beyond your credit report for other signs that someone is using your information.

An alert could point you toward a new credit inquiry, an unfamiliar account or personal information found in a breach. However, an alert cannot tell the whole story. You still need to determine whether the activity is legitimate and decide what action to take. I would not panic over every notification. Read the alert carefully. Look at exactly what information was involved and save the notice in case you need it later.

Restoration is the hands-on work of recovering after identity theft. That may mean contacting a bank or credit bureau, disputing fraudulent activity, replacing compromised documents or securing an account.

Identity theft can also reach beyond your credit report. Someone could use stolen information to open a new account or take over one you already have. A thief may even use your identity for tax or government benefit fraud. The recovery process depends on what the criminal actually did.

Documentation helps too. Save breach notices, account alerts and correspondence. Keep case numbers and notes from conversations together so you are not hunting for them later.

IDENTITY THEFT RARELY ANNOUNCES ITSELF: 6 SIGNS YOU MISSED

If something looks suspicious, focus first on what you can verify.

Review your credit reports for accounts or activity you do not recognize. USA.gov says the three nationwide credit reporting agencies are Equifax, Experian and TransUnion. AnnualCreditReport.com is the federally authorized site for requesting your free credit reports. Also review your bank and credit card accounts. Check payment apps and any other financial services you regularly use.

Pay attention to government notices as well. A tax filing or benefit notice that does not match your activity could signal a problem. A sudden wave of convincing scam messages may raise concern. However, scam messages alone do not prove someone has stolen your identity.

A credit freeze restricts access to your credit file. Because lenders generally need to review that file before approving new credit, a freeze can make it harder for an identity thief to open a new account in your name. You need to place the freeze separately with Equifax, Experian and TransUnion. It is free, and you can lift it when you legitimately need someone to access your credit.

A fraud alert works differently. It tells businesses to take additional steps to verify your identity before extending new credit. For an initial fraud alert, you only need to contact one of the three bureaus. That bureau must notify the other two. An initial fraud alert is free and lasts one year.

I would start with your primary email account. If someone controls your email, they may be able to use password-reset links to get into other services. Use a strong, unique password for every important account. A password manager can create and store those passwords for you.

Turn on multifactor authentication wherever you can. It gives a criminal another barrier to get past even if your password has already been compromised. Also check the recovery phone numbers and email addresses attached to important accounts. Remove anything you do not recognize.

If you find suspicious activity, contact the bank, card issuer or company directly. Use the phone number from the company's official website, your statement or the back of your card. Do not use a number supplied in a suspicious text or email.

Ask what you need to do to secure the account and dispute unauthorized activity. Keep the case number or confirmation information you receive. You may need it later.

If someone actually used your identity, report it through IdentityTheft.gov. The FTC says IdentityTheft.gov can create a recovery plan based on what happened and help identity-theft victims work through the next steps.

Do not feel like you have to understand every part of the fraud before protecting yourself. You can start securing your accounts while you continue figuring out what happened.

This is where professional restoration help can become useful. A restoration specialist can help you understand what needs attention and guide you through the recovery process. Depending on the service and incident, that could include helping organize paperwork or explaining how to handle disputes. Some services may also assist with communications involving affected institutions.

Still, a specialist cannot necessarily handle everything for you. You may need to verify your identity or provide documents. Your bank or a government agency may require you to communicate with them directly. The amount of help you receive depends on the service and what happened. I look at restoration assistance as having someone help you navigate a complicated process. It isn’t a promise that identity theft disappears overnight.

Older identity-protection products were often centered mainly on credit monitoring. Today, many services are expanding to cover more of the ways personal information can be exposed or misused.

Depending on the service, that may include monitoring for suspicious financial activity, checking and savings accounts, investment accounts, phone takeovers, home title changes, dark-web exposure, data breaches and social media risks.

Some services are also adding tools designed to help you act when something goes wrong. These can include alerts for suspicious charges, data-broker removal, scam support and access to specialists who can help guide you through identity restoration.

Certain plans may also include reimbursement for eligible losses tied to identity theft or scams. Coverage limits, eligibility requirements and exclusions can vary widely, so it is important to read the terms before signing up.

6 IN 10 IDENTITY CRIMES NOW BEGIN WITH A NEW ACCOUNT

For me, the bigger change is that identity protection is becoming more focused on both detection and recovery. The question is whether the monitoring, support and coverage offered by a service match the risks you are most concerned about and are worth the cost to you.

See my tips and best picks on Best Identity Theft Protection at Cyberguy.com

If you are considering a paid identity-protection service, here are the questions I would ask before signing up.

Look at what the service actually monitors. Does it cover one credit bureau or multiple bureaus? Does it monitor financial accounts or other places where your identity could be misused? Compare those features with the risks you are most concerned about.

An alert only helps if you know what to do with it. Find out what information the service gives you when suspicious activity appears and whether it helps you determine what happened. Some alerts may simply tell you to investigate. Others may connect you with additional support.

This is one of the areas I would pay close attention to. Find out whether you get access to a restoration specialist and what that person can actually do. Will the specialist guide you through the process? Can they help with paperwork or communications? What steps will still fall on you? Those answers can tell you much more than a feature list.

Do not stop at the biggest dollar figure on the page. Look at the individual coverage limits, what types of losses qualify and what expenses may be excluded. Some identity-protection plans offer different reimbursement amounts depending on the level of coverage, so read the terms carefully before signing up.

You can take many important identity-protection steps yourself for free. Credit freezes are free. You can review your credit reports and report identity theft without paying for an identity-protection subscription. A paid service may still make sense if you value ongoing monitoring or want someone to help you navigate recovery. For me, that is the more useful way to judge these services. Look at what you get and decide whether that support is worth the price for you.

The biggest thing to understand is what happens after you get an identity alert. Seeing your Social Security number or other personal information in a breach can immediately make you wonder what a criminal has already done. But an exposure notice alone does not answer that question. So I would start there. Find out whether anyone has actually used your information. Check your accounts and credit reports. If something looks wrong, protect the affected accounts and document what you find. A credit freeze can also help shut down one of the easiest paths criminals use to open new credit in your name. If you discover real identity theft, you have another decision to make. You can work through the recovery process yourself or use a restoration service to help guide you. I can see real value in having someone help when you are dealing with fraudulent accounts, paperwork and calls you never asked to make. Just know what you are paying for and understand where the service's job ends, and yours begins. No identity-protection service can guarantee that a criminal will never get your information. What you can control is how quickly you recognize trouble and how prepared you are to respond.

If your identity were stolen tomorrow, would you feel confident handling the recovery yourself or would you want an expert helping you through it? Let us know by writing to us at Cyberguy.com

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