A business administrator thought it was odd when she began receiving notices from various credit card companies that their school could “increase its credit limit” on existing cards. The problem was the school and its associated church didn’t use those card companies. Around the same time, she received a letter confirming a change of address request from the post office. And then the bills for thousands of dollars in purchases started coming. After asking around, she confirmed that no one had applied for the cards or the change of address. Now what?
Discovering that your organization may be a victim of credit card fraud can be unsettling, especially for ministries or schools who rely heavily on donations and tithes. It’s crucial to take swift action to protect your financial resources and stop further unauthorized activity.
Your process should be two-fold: Take immediate steps AND protect against future scams.
Contact the credit bureaus. Contact the major credit bureaus—Equifax, Experian, and TransUnion—to place a fraud alert on the organization’s credit reports. This alert acts as a red flag, making it more challenging for an identity thief to open new accounts in your ministry’s name.
Consider placing a credit freeze. If you’re concerned about continuing unauthorized access, consider placing a credit freeze on ministry credit reports. This restricts access to your ministry's credit report, making it harder for anyone to open new accounts.
File a police report. Report the identity theft to your local police and obtain an official copy of the police report. Be sure to bring supporting documents, such as copies of credit card bills, collection notices, credit reports, or bank statements. Note: Credit card companies often require your ministry to file a police report.
Contact the Post Office. Report a fraudulent change of address to the U.S. Post Service. You can report it online or call 877-876-2455. Your local Post Office may offer additional guidance on steps to take.
Notify the credit card companies. Inform the credit card companies of fraudulent accounts. Request that they be closed immediately. Follow up in writing, providing copies of the police report and any other supporting documentation.
Update passwords, pin numbers, and security measures. Change the passwords and pin numbers (if applicable) for online accounts, especially those related to financial services. Consider implementing two-factor authentication where available to enhance security measures and prevent further unauthorized access.
Keep detailed records. Track names and phone numbers of people with whom you’ve discussed your ministry's case, and keep a record of all reports and supporting documents.
Review credit reports. Obtain free credit reports from each of the three credit bureaus and carefully review them for any unauthorized accounts or changes. If you spot inaccuracies, promptly dispute them with the credit bureaus.
Monitor accounts. Keep a close eye on bank accounts, credit card statements, and other financial statements. By doing so on a regular basis, you’ll catch suspicious activity that you can report promptly.
Contact the Federal Trade Commission (FTC). Consider filing a complaint with the FTC at IdentityTheft.gov. The FTC provides a step-by-step recovery plan and valuable resources for identity theft victims.
Seek legal advice or identity theft services. Depending on the severity of the theft, you may want to consult with an attorney to explore legal options and understand your rights. You also can opt to use an identity theft restoration service. These services can handle many of the tasks listed here on your behalf and help restore your credit history. Keep in mind that these services typically come with a fee, but the cost may be offset when you consider long-term damage to your ministry's credit history and financial resources.
Remember, it's important to act swiftly and diligently to minimize the potential damage caused by identity theft. Additionally, keep detailed records of all communications and actions taken in case they are needed for future reference.
This article from the Safety Library at Brotherhood Mutual Insurance Company is used with permission. The information provided is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We encourage you to regularly consult with a local attorney as part of your risk management program.
Article originally written May 2024 and updated September 2024.
