What is Financial Fraud and Theft Due to Identity Theft?

Financial fraud or theft due to identity theft occurs when someone uses your personal information for unauthorized financial transactions without your consent. This can include unauthorized credit card charges, ATM withdrawals, and bank transfers, among other fraudulent activities.

Identity thieves constantly develop new methods to access your sensitive information. Common types of financial fraud include:

• Data Breaches: These can be intentional, such as hacking into a company's system, or accidental, like when company devices are stolen.

• Formjacking: Hackers insert malicious code into website forms to collect data.

• Mail Theft: Traditional mail still holds valuable information for thieves.

• Phishing: Scammers trick you into providing personal information through fake emails, texts, or calls.

• Synthetic Identity Theft: Thieves use a real social security number with fake details.

• Unsafe Internet Connections: Public Wi-Fi networks can provide a gateway for thieves to access your computer.

How Does Financial Fraud/Theft Happen?

Financial fraud ranges from sophisticated cybercrimes to simply using another individual’s personal information without their knowledge. Businesses relying on electronic data are particularly vulnerable, as electronic transactions allow thieves to steal information quickly, often leading to prolonged issues for the victims.

Unauthorized Credit Transactions

If you notice unauthorized transactions on your credit card, act immediately:

1. Contact your credit card issuer. Report the suspicious activity and request a new card.

2. Place a fraud alert on your credit report. This prevents new credit accounts from being opened in your name without your consent.

   • Equifax: Online at Equifax Fraud Alert or call (800) 525-6285

   • Experian: Online at Experian Fraud Alert

   • Trans Union: Online at Trans Union Fraud Alert

Unauthorized ATM Charges

Unauthorized ATM withdrawals can be a sign of identity theft. Here’s what you should do:

1. Contact your bank immediately. Report the fraudulent withdrawals and request a new ATM card.

2. Check your bank statements regularly. Monitor for any suspicious activity and report it as soon as possible.

Unauthorized Bank Transfers

If you detect unauthorized transfers from your bank account, take the following steps:

1. Notify your bank. Report the unauthorized transfers and request an investigation.

2. Secure your accounts. Change your online banking passwords and consider setting up additional security measures.

What Should I Do if I Notice Suspicious Activity?

If you suspect financial fraud due to identity theft, act immediately:

1. Contact the financial institutions involved. Use contact information from your statements, credit report, or an internet search.

2. Place a fraud alert on your credit report. This helps prevent further unauthorized activity.

What Do I Do if I Am a Victim of Financial Fraud/Theft?

Financial fraud is a widespread issue, with a new victim every two seconds. Various consumer protection statutes provide avenues to help you recover. Our experienced California financial fraud lawyers can help you utilize these statutes to get the compensation you deserve.

What Laws Can Apply to Financial Fraud Claims?

Several consumer protection laws can help victims of financial fraud, including:

• Fair Debt Collection Practices Act (FDCPA): Protects against abusive debt collection practices.

• Fair Credit Reporting Act (FCRA): Helps remove fraudulent accounts from your credit report.

• Electronic Fund Transfer Act (EFTA): Protects consumers from unauthorized electronic fund transfers.

• California’s Identity Theft Act: Protects personal information and offers remedies for identity theft.

• Intrusion Upon Seclusion: Addresses significant intrusions into personal privacy.

What Types of Damages Can I Seek for Financial Fraud Claims?

Successful financial fraud claims can recover:

• Actual Damages: Includes pecuniary loss (e.g., denials of credit, higher interest rates) and emotional distress (e.g., stress, frustration, injury to reputation).

• Punitive Damages: Intended to punish the defendant and deter similar behavior.

• Attorneys’ Fees and Costs: Many consumer protection statutes allow for lawsuits to be handled on a contingency basis, meaning no upfront costs for the consumer.

What if the Business Rejects My Financial Fraud Claim?

Businesses often receive fake financial fraud claims, making it difficult for legitimate victims. If your claim is rejected, it may be time to consult with an attorney.

Can I Afford an Attorney to Assist With My Financial Fraud Claim?

Yes, most attorneys handling financial fraud claims work on a contingency basis, meaning they only get paid if you win your case.

How Can I Avoid Being the Victim of Financial Fraud?

The Federal Trade Commission recommends:

• Reading your credit card and bank statements regularly.

• Knowing your payment due dates.

• Reviewing your health insurance statements for accuracy.

• Shredding documents with personal information.

• Reviewing your credit reports annually at annualcreditreport.com.

While these steps can’t guarantee you won’t become a victim, they can significantly reduce your risk.