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What To Do If You Suspect Identity Theft: A Step-by-Step Guide

Unfamiliar charges on your credit card. An unexpected bill in the mail. A surprise drop in your credit score. These are all frightening signs that your personal and/or financial details may have been stolen — and for each, quick action is essential to prevent further damage. Here’s what to do if you suspect identity theft.

Identity Theft Is a Prominent Problem for U.S. Consumers

According to Federal Trade Commission (FTC) data, identity theft was the most common issue consumers said they encountered in the U.S. marketplace in 2023. Complaints related to credit card misuse — either fraudulent use of an existing card or using stolen personal information to apply for a new card — topped the list of ID-theft types reported to the agency. Incidents related to “other identity theft,” loans or leases, bank accounts, and government documents or benefits rounded out the top five.

Steps To Take If You Think Your Identity Has Been Stolen

Identity theft is a type of fraud that happens when criminals wrongfully obtain your personal or financial details, and then attempt to use this information in a fraudulent or deceptive manner, usually in an effort to make money. Discovering you may have fallen victim to identity theft can be startling and overwhelming — but by avoiding panic and taking the right next steps, you can limit the damage of the crime and simplify your recovery process.

If you suspect you may have been targeted by an identity theft scheme, act fast and take the steps outlined in our list of what to do:

Step 1: File a Fraud Alert

Place a “fraud alert” with one of the three major, nationwide U.S. credit-reporting agencies — Equifax, Experian, or TransUnion. The alert is free of charge, and when you file one, the agencies alert potential creditors to take extra identity-verification steps before extending any lines of credit in your name. This makes it substantially more challenging for criminals to open new accounts using your stolen personal information.

Step 2: Notify Your Bank, Credit Card Issuer(s), and Other Creditors

Reach out to the financial institutions where you hold accounts to let them know you may have fallen victim to identity theft. Start with the creditor behind the account you suspect has been compromised, but it’s never a bad idea to let other banks, credit card issuers, and any additional creditors know about your concerns, too. Once you’ve provided the information, they’ll know to keep a closer eye on your account(s) for suspicious activities. And in some cases, they may recommend putting a hold on your account(s) and/or issuing new credit or debit cards. (If you’re an Arthur State Bank customer, call us toll-free at 888-825-2265.

Step 3: Let Law Enforcement Know

Next, alert the authorities about the incident of concern. Start by visiting identitytheft.gov to file a report with the FTC. The agency will collect your information and create a personalized identity theft recovery plan for you. In addition, the FTC will share details from your report with relevant local authorities. (Because of this, it’s not critical to file a report with your local police department. But if you choose to do so, providing your local police a copy of your FTC identity theft report can be helpful and save time.)

Step 4: Check Your Credit Report — and Consider Freezing Your Credit

Each of the three U.S. credit-reporting bureaus (Equifax, Experian, and TransUnion) are required by law to provide you a free copy of your credit report once a year. And exceeding that requirement, all of them offer free access to an online version of your report once a week. Visit annualcreditreport.com to obtain and view a copy of your current credit report, and then check for any unfamiliar credit lines that may have been opened in your name — plus look for suspicious activities on the accounts you do recognize. For an added layer of security against identity theft, choose to place a credit freeze (also known as a security freeze) with each of the agencies, which prevents any new credit accounts from being opened in your name. To take this step or to learn more about why you might want to consider it, visit the credit-freeze pages on the Equifax, Experian, and TransUnion websites.

Step 5: Keep Your Social Security Number Safe

If there’s a chance your Social Security number may have fallen into the wrong hands, consider contacting the Social Security Administration (800-772-1213) and the Internal Revenue Service (800-829-0433) to let them know. This can help prevent criminals from filing a false claim for your tax refund or applying for employment under your name.

Step 6: Change Your Passwords — and Take Other ID Safety-Focused Steps

To protect yourself against identity theft, it’s important to change the passwords for your online accounts (especially those for your email and any finance-related accounts) regularly. And when you suspect your personal information has been compromised, this step becomes even more important, as it can help keep any criminal(s) with your personal details from inflicting additional damage. It’s also a good idea to know how criminals steal your personal information and always to follow the best practices for ID theft prevention. We offer tips on some of the leading ways you can keep your personal information safe, how to elevate your digital-banking security, and how to better secure your smartphone.

Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs ranging from checking and savings to retirement accounts, mortgages, other personal loans and more, visit arthurstatebank.com.

Man doing his banking online

AnnualCreditReport.com is the only source for free credit reports authorized by the federal government. Every 12 months, you can get a free copy of your credit report from each agency.

Your credit report has your credit history for all of your credit accounts as well as any credit inquiries and public record court information such as collections. In addition, the report provides personally identifiable information such as your name, address, and employment.

Be sure to carefully review all three reports to identify any problem areas that you may need to clean up prior to applying for a mortgage. If there is any incorrect information, follow the reporting agency’s rules to correct it or add a notation to the report to explain the situation.

Your FICO Score is a score combines data from several areas include payment history, the amount owed, length of credit history, new accounts. Many lenders use this score as a guide. This score is not provided as part of the free annual credit report.

Learn more about how your credit score impacts your ability to secure a loan.

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Couple looking over finances

Primary considerations for setting your housing budget require an assessment of your income, debt and current savings for the down payment on the home. The following are generally recommended guidelines; however, you should meet with an Arthur State Bank lender to get personalized mortgage information.

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Couple meeting with lender

The pre-qualification/pre-approval letter is included with any offer you make on a house to inform the seller that you have met with a mortgage lender and you are prepared to make an offer. The letter states that based on certain assumptions, the bank is prepared to lend you up to a specified amount of money for a home mortgage.

When choosing a loan officer, we recommend going local to work with someone who understands your community’s real estate market. This blog on first-time home purchases includes questions to ask your lender that may be helpful when preparing for your meeting.

Helpful Resources:

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Realtor shaking hands with a client

When a house is sold, the seller typically pays real estate commission to both the listing agent and the selling agent. It is extremely beneficial for the buyer to use their own real estate agent. Loan officers can often recommend selling agents in the area; ask your officer about realtor referrals when discussing your loan.

A good realtor will know the local market and can help you find an ideal home based on your budget, location and desired features. During your search, understand that you will most likely need to compromise on some items, so it’s important to identify your critical needs versus your wants.

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Couple searching online for a home

Additionally, when you start with the house search and work backwards, homes can often go off the market while you’re completing steps 1-4. While browsing homes immediately can be tempting, we recommend following these steps in order so that, once you find your dream home, you’ll be well-positioned to take action immediately.

When you find the home you want and you think you are ready to put an offer on it, you will want to make sure you have all the information you need to make a solid offer.

  • Evaluate the neighborhood.
  • Drive by the house at different times of the day.
  • Examine how other houses in the neighborhood are maintained.
  • Consider any potential traffic or other disruptive noise.
  • Is there ample parking for you and visitors?
  • Read the details in any Homeowner Association agreements (HOA fees and rules).

Make sure to do a preliminary check of house details:

  • Check the water:
  • Does it have good pressure?
  • How long does it take to get the water hot?
  • Is it well water or city water?
  • Turn light switches on and off.
  • Open and close doors and windows to make sure they work properly.
  • Review previous utility bill expenses.
  • Consider the property tax bill.

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Family meeting with realtor at new house

When writing an offer contract, be sure to pay attention to all of the details.

Offer Price:

Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.

If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.

Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.

There isn’t one best strategy.

Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.

Contingencies:

  • Home inspection.
  • Mortgage.
  • Final walk through (24 hours prior to closing).

Proposed closing date. Typically, this is 30-45 days from an accepted offer.

A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.

Attach your pre-approval letter to the offer.

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Two people in professional meeting

The clock starts ticking for everything documented in the contract, including mortgage application, inspections and closing date.

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Woman advising other woman on mortgage application

You will need to decide which mortgage to select prior to the application.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

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Home inspector going over findings with home owner

Depending on the size of the house, an inspection can cost on average between $300 to $1000.

Many real estate contracts specify how problems uncovered in the inspection will be resolved, up to a certain dollar amount. Should necessary repairs exceed that amount, the buyer has the option to cancel the contract without penalty and receive their deposit money back. Another option is for the buyer and seller to renegotiate who will pay for additional repairs.

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Woman happily holding keys to her new home
  • Homeowner’s insurance is required by the lender prior to closing on the loan.
  • Turn on utilities in your name, effective the closing date.
  • Change your address with the U.S. Postal Service.
  • Make moving arrangements.

Three days prior to closing:

  • You should receive your final Closing Disclosure from the closing agency. The final Closing Disclosure shows a column for the seller and a column for the buyer. All closing charges and credits for both the seller and the buyer are documented in the closing statement.
  • Review the closing statement for accuracy prior to coming to closing.
  • The final amount in the buyer’s column shows you the amount of money you need to pay at closing.

The closing office will provide specific payment instructions. Closing funds have become recent targets for cybercriminals. If you are asked to use a wire transfer, call the office and ask to speak to someone you have been working with to double-check the instructions.

Closing day:

In South Carolina, the closing will usually take place at the attorney’s office. Everyone signing for the mortgage must be present to sign the closing paperwork. Make sure you bring the following:

  • Cashier’s check or proof of payment for wire transfer.
  • Driver’s license.
  • Checkbook, just in case there are any additional items that were not on the closing statement.

Be sure to understand this information:

  • How and when you will pay:
  • Your mortgage.
  • Your property taxes.
  • Your homeowner’s insurance.
  • Any HOA dues.
  • Who to call with any questions.

The best practice is to go through the homebuyer’s roadmap in this sequence. However, if you jumped ahead early in your journey, just circle back to address the steps you missed.

Arthur State Bank’s loan officers are closely tapped into local real estate markets and experts at helping clients get what they need on terms that work for them. We also offer mortgage specials for first-time homebuyers.

To start planning your journey to your dream home, try out our mortgage calculator. If you’re ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. Don’t forget to ask about our first-time homebuyer offer.

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