What to Do If Your Identity Is Stolen

Intermediate Time: 2-4 hours Category: Identity Protection

Discovering that someone has stolen your identity is overwhelming, but a systematic recovery process can limit the damage and restore your accounts. This guide walks you through every step in priority order, from stopping ongoing fraud to rebuilding your credit and preventing future theft.

Why This Matters

Identity theft affected nearly 1.4 million Americans in 2023, according to the FTC. The average victim spends over 200 hours resolving the aftermath, and out-of-pocket costs can reach thousands of dollars. However, victims who follow a structured recovery process and file the right reports have significantly better outcomes. The FTC's IdentityTheft.gov recovery plans are legally meaningful: the documents they generate give you specific rights under federal law, including the right to dispute fraudulent accounts, block information on your credit report, and prevent debt collectors from pursuing debts that are not yours.

Step-by-Step Instructions

  1. Freeze your credit immediately at all three bureaus: Equifax (equifax.com/personal/credit-report-services/credit-freeze), Experian (experian.com/freeze/center.html), and TransUnion (transunion.com/credit-freeze). This prevents the thief from opening any new accounts.
  2. Go to IdentityTheft.gov and create an official FTC Identity Theft Report. Answer the questions about what happened. The site will generate a personalized recovery plan with pre-filled letters and forms. Print or save your Identity Theft Report, as it is a legally significant document.
  3. File a police report with your local law enforcement. Bring your FTC Identity Theft Report, evidence of the fraud (bills, collection notices, credit report entries), and a government-issued ID. Get a copy of the police report for your records.
  4. Contact each company where fraud occurred. Call their fraud department, explain that your identity was stolen, and ask them to close or freeze the fraudulent accounts. Send a follow-up letter with a copy of your FTC Identity Theft Report and police report. Request written confirmation that the account has been closed and that you are not liable.
  5. Dispute fraudulent information on your credit reports. Write to each credit bureau (Equifax, Experian, TransUnion) identifying the specific fraudulent accounts and inquiries. Include your FTC Identity Theft Report. Under federal law, the bureaus must remove fraudulent information within 4 business days of receiving your dispute and report.
  6. Place an extended fraud alert on your credit reports. This lasts 7 years (vs. 1 year for a standard alert) and is available to confirmed identity theft victims with an FTC report.
  7. Check for tax-related identity theft. If someone filed a tax return using your SSN, file IRS Form 14039 (Identity Theft Affidavit) and set up an IRS Identity Protection PIN at irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.
  8. Monitor aggressively for 12+ months. Pull your credit reports weekly from annualcreditreport.com. Review all bank and credit card statements. Set up transaction alerts on every financial account. Consider an identity theft protection service for ongoing monitoring.

Common Mistakes to Avoid

  • Not filing an FTC report: The FTC Identity Theft Report is not just paperwork. It grants you specific legal rights to dispute accounts and block fraudulent information on your credit reports.
  • Trying to resolve everything by phone only: Always follow up phone calls with written correspondence. Paper trails are essential for disputing fraudulent accounts and debts.
  • Paying fraudulent debts or collections: You are not legally responsible for debts incurred through identity theft. Do not pay them. Dispute them with your FTC report and police report.
  • Stopping monitoring too early: Identity thieves often wait months before using stolen information. Continue monitoring your credit and accounts for at least a year after the theft.
  • Not checking for medical identity theft: Request your medical records and Explanation of Benefits statements from your insurance company. Someone may have used your identity to receive medical care, which can affect your medical records and insurance.

Additional Tips

  • The Identity Theft Resource Center (idtheftcenter.org) offers free one-on-one assistance from trained advisors who can help you through the recovery process.
  • Keep a detailed log of every call, letter, and action you take during recovery, including dates, names of representatives, and reference numbers.
  • If the identity theft causes you to be denied credit, employment, or housing, you may be entitled to damages under the Fair Credit Reporting Act.

Last updated: February 10, 2026