What should you do if your identity has been stolen?
Discovering that your identity has been stolen can be overwhelming. It may feel invasive, confusing, and urgent all at once. The good news is that there are specific steps you can take to limit the damage, document what happened, and begin restoring your financial identity.
Identity theft occurs when someone uses your personal information without permission, often for financial gain. This may include your name, Social Security number, date of birth, bank account information, credit card number, online login credentials, or other identifying details. A thief may use that information to open accounts, make purchases, apply for loans, file a fraudulent tax return, obtain medical services, or impersonate you in other ways.
The most important thing is to act quickly and keep careful records of each step you take.
1. Report the Identity Theft to the FTC
Start by reporting the identity theft at IdentityTheft.gov, the Federal Trade Commission’s official identity theft recovery site. The FTC provides a personalized recovery plan and allows you to create an official Identity Theft Report, which may be useful when disputing fraudulent accounts or transactions.
This report can help you document the fraud when working with credit bureaus, financial institutions, debt collectors, and other companies.
2. File a Police Report When Appropriate
You may also want to contact your local police department and file a police report, especially if you know who stole your identity, a creditor or financial institution requests one, or the theft involves local criminal activity.
When you file the report, ask for a copy. Keep it with your FTC Identity Theft Report and all other documentation related to the incident.
3. Place a Fraud Alert or Credit Freeze
Next, protect your credit reports.
A fraud alert tells creditors that they should take extra steps to verify your identity before opening new credit in your name. An initial fraud alert generally lasts one year. The Consumer Financial Protection Bureau notes that fraud alerts are one of the main steps identity theft victims should consider.
A credit freeze, also called a security freeze, is stronger. It restricts access to your credit report, which can make it much harder for a thief to open new credit accounts using your information.
You generally need to place a freeze separately with each of the three major credit bureaus: Equifax, Experian, and TransUnion.
See Lock Down Your Credit: How Freezing It Can Protect You from Fraud – Gilbert Wealth
For many identity theft victims, a credit freeze is the more protective option, especially if you are not planning to apply for new credit soon.
4. Review Your Credit Reports
Obtain and review your credit reports from the major credit bureaus. Look carefully for:
- Accounts you do not recognize
- Credit inquiries you did not authorize
- Address changes you did not make
- Incorrect personal information
- Collection accounts related to debts you do not owe
If you find fraudulent activity, dispute it with the credit bureaus and with the company that reported the account. Include copies of your FTC Identity Theft Report and any police report, if available.
5. Contact Banks, Credit Card Companies, and Other Financial Institutions
Notify any financial institution that may be affected. This includes banks, credit card companies, investment custodians, loan providers, payment apps, and any other accounts tied to your financial life.
Ask them to close, freeze, or replace compromised accounts. Also ask whether they can issue new account numbers, debit cards, credit cards, or online credentials.
When speaking with each institution, document:
- The date and time of the call
- The representative’s name
- The case or reference number
- What action was taken
- What follow-up is required
This record can be valuable if the issue continues or if fraudulent activity reappears later.
6. Change Passwords and Strengthen Account Security
Change passwords for any affected accounts immediately. You should also change the password for your email account, because email often serves as the reset point for banking, credit card, shopping, and social media accounts.
Use strong, unique passwords for each account. Avoid reusing passwords across multiple websites. Where available, turn on multi-factor authentication, especially for email, banking, investment, tax, Social Security, and credit card accounts.
Also consider reviewing your account recovery options. Make sure the phone numbers, email addresses, and security questions tied to your accounts have not been changed.
7. Monitor Financial Statements Closely
For the next several months, review your bank, credit card, and investment account activity frequently. Identity theft sometimes happens in waves. A thief may test a small transaction first and attempt larger activity later.
Set up transaction alerts where possible. These alerts can notify you about:
- Purchases above a certain dollar amount
- Online or card-not-present transactions
- ATM withdrawals
- Account login attempts
- Balance changes
- New payees or transfers
Early detection can make recovery easier.
8. Keep a Recovery File
Create a dedicated file, either digital or paper, for all identity theft records. Include:
- FTC Identity Theft Report
- Police report, if filed
- Copies of letters sent to creditors or credit bureaus
- Case numbers
- Dates of phone calls
- Names of representatives
- Copies of account statements showing fraud
- Credit bureau disputes
- Written confirmations that accounts were closed or corrected
Identity theft recovery can take time. A clear record helps you stay organized and gives you proof if the same issue resurfaces.
Special Considerations
Tax-Related Identity Theft
Tax-related identity theft occurs when someone uses your Social Security number to file a fraudulent tax return, claim a refund, or otherwise interfere with your tax account.
If you receive an IRS notice about a suspicious return or believe someone has used your information for tax fraud, follow the IRS instructions carefully.
Note – THE IRS DOES NOT CALL YOU UNPROMPTED. If you didn’t initiate a contact and someone calls you saying they are from the IRS, hang up and call a verifiable number.
You may also consider applying for an IRS Identity Protection PIN, which can help prevent someone else from filing a federal tax return using your Social Security number.
Social Security Number Misuse
If your Social Security number has been stolen or misused, the Social Security Administration directs victims to report identity theft through IdentityTheft.gov and follow the FTC recovery process.
Be especially cautious if you receive calls, texts, or emails claiming there is a problem with your Social Security number. Scammers often impersonate government agencies. Do not provide personal information in response to an unexpected call or message.
Medical Identity Theft
Medical identity theft can occur when someone uses your personal information to obtain medical care, prescriptions, insurance reimbursements, or other health services.
Review explanations of benefits, medical bills, online patient portals, and insurance claims for unfamiliar providers or services. If something looks wrong, contact your health insurer and healthcare provider.
Ask for copies of the relevant medical records and request corrections if fraudulent information appears in your file. This matters because inaccurate medical records can affect future treatment, billing, and insurance claims.