If you’re worried that someone is using your personal information to get credit, goods, or services under your name, trying to find out what has happened and figuring out what to do next can seem overwhelming.
In this article, you’ll learn about the recovery steps to take if you're the victim of identity theft.
1. Investigate the Situation: Review Your Credit Reports
You can discover the extent of the identity theft by getting copies of your credit report from the three major credit reporting agencies: TransUnion, Equifax, and Experian.
Don’t worry about paying for the reports. Under federal law, consumers are entitled to a free annual credit report from each agency through AnnualCreditReport.com. Also, Equifax, Experian, and TransUnion started offering free weekly online credit reports during the COVID-19 pandemic. In October 2023, the credit reporting agencies made this service permanent.
The report won’t include your credit score, however. Companies can charge a fee for providing that service.
After you get the reports, you’ll want to review them for inaccurate information. If you see any unusual activity or personal information you don't recognize, note it. Here are examples of the type of incorrect information you’ll be looking for when you believe that someone has stolen your identity:
- credit accounts that you didn’t open
- addresses that you’ve never lived at
- employers that you don’t recognize, and
- an incorrect Social Security number.
If you find that one of your credit reports has this kind of information, file a dispute with the agency that produced the report. Include a copy of your FTC identity theft report (see below) and proof of your identity, such as your name, address, and Social Security number.
If you don’t have an FTC identity theft report, you're still able to dispute information in your credit report, but the process will likely take longer, and the credit bureaus might not remove the information.
2. Secure Your Accounts
After discovering the theft, put a credit freeze and fraud alert on your credit files. A fraud alert provides less protection than a credit freeze. You can use both a freeze and an alert simultaneously. However, if you're going to pick one or the other, in most cases, it's better to choose a freeze.
Freezing your credit files. A “credit freeze” prevents a credit reporting company, like Equifax, Experian, or TransUnion, from releasing your credit information to a third party. Once your credit file is frozen, potential creditors can only access your account if you unfreeze it for a specific time or for a specific company or person. So, a freeze prevents lenders from issuing new credit based on what's in your file.
A credit freeze usually lasts indefinitely (unless you remove it), but it expires after seven years in a few states. To freeze your file with the three major credit reporting agencies, you must initiate a freeze with each agency.
Putting a fraud alert on your credit files. With a “fraud alert,” a creditor has to take extra steps to verify the identity of a person requesting credit before proceeding with the transaction. After you request a fraud alert at one of the three bureaus, your fraud alert will be automatically added to the other two companies. You can place an initial fraud alert that lasts for a year if you think you might be the victim of identity theft.
Once you know you're the victim of identity theft, you can send the credit bureau an identity theft report (see below) and request that it place an extended alert, which lasts seven years, in your file. Once an extended fraud alert is in place, a creditor can't grant new credit in your name unless it first takes reasonable steps to confirm your identity by contacting you directly at the telephone number you provided or by another reasonable method you've specified.
3. Create and Use an Identity Theft Report
The biggest tool you have for combating identity theft is an identity theft report. You’ll start by reporting the theft at IdentityTheft.gov. IdentityTheft.gov is the federal government’s main resource for identity theft victims. Go to this website to:
- get a personal recovery plan
- obtain sample letters to send to your creditors and
- get your identity theft report.
What Is an Identity Theft Report?
Getting an identity theft report triggers some important legal rights that can help you recover from the theft. For instance, you can use the report to prove that you're the victim of identity theft to creditors and businesses. You can also use the report to:
- permanently block fraudulent information that results from identity theft, including accounts or addresses, from appearing on your credit reports
- ensure that fraudulent debts don’t reappear on your credit reports
- prevent a company from continuing to collect debts that result from identity theft (or selling them to others to collect), and
- place an extended fraud alert on your credit report (as discussed above).
The government's website also provides valuable information about what to do after your identity is stolen, other possible steps you should take, and specific instructions for certain accounts such as utilities, phones, government benefits, checking accounts, and other accounts.
You can also get additional information about dealing with identity theft at the FTC's Identity Theft website.
4. File a Police Report
Often, you can use your identity theft report rather than a police report to clear up credit issues resulting from identity theft. But, sometimes, it might be useful to also have a police report.
For example, you'll want to file a police report if you know who stole your identity (or have other information that might lead the police to the thief), the identity thief used your name in a traffic stop or other police interaction, or if a creditor, debt collector, or other party affected by the identity theft insists that you provide a copy of a police report.
To get a police report, go to your local police office with:
- a copy of the identity theft report
- a government-issued identification with a photo
- proof of your address (mortgage statement, rental agreement, or utilities bill)
- any other proof you have of the theft (bills, IRS notices, etc.) and
- FTC's Memo to Law Enforcement (you can get this document at Identitytheft.gov).
Let the police know that you're the victim of identity theft and you want to file a report. Get a copy of the report, which you might need to complete other steps on the IdentityTheft.gov website or for other purposes.
Also, federal and state laws provide protections to identity theft victims, but you might not be able to take advantage of them without making a police report first. Some of the federal laws are:
- The Identity Theft and Assumption Deterrence Act of 1998. This law makes identity theft a federal crime.
- The Fair and Accurate Credit Transactions Act (FACTA). FACTA requires credit reporting agencies to investigate allegations of identity theft, gives victims the ability to place fraud alerts on their accounts, and provides victims with free copies of their credit reports.
- The Fair Credit Billing Act and the Electronic Funds Transfer Act. This law limits the amount a credit card company or bank can charge you for unauthorized withdrawals or fraudulent accounts.
- The Identity Theft Penalty Enhancement Act. This Act establishes criminal penalties against identity thieves who commit felonies, terrorism, or immigration fraud using another person’s identifying information.
Additionally, some states have identity theft laws that increase the protections offered by federal laws. For example, California penalizes offenders more harshly if the victim of identity theft is disabled or an older citizen. (Cal. Penal Code § 368).
4. Check for Fraudulent Use of Your Social Security Number
Get a copy of your Social Security benefits statement to see if anyone is using your number for work or other purposes. If you find fraudulent use of your Social Security number, contact the SSA’s fraud hotline at 800-269-0271. It’s also usually a good idea to file your taxes early—as soon as you can—before a thief does.
If you want a new Social Security number, be aware that the Social Security Administration will only issue a new number under certain circumstances and losing a card isn't enough. You’ll be able to get a different number if:
- family members are having problems with sequentially assigned numbers
- more than one person is assigned or using the same number
- you can’t resolve Social Security number issues resulting from identity theft
- a new number would help prevent harassment, abuse, or endangerment, or
- you have a religious or cultural objection to the digits in your number (you must provide proof of your group affiliation).
You might be surprised to learn that requesting a new number can cause problems, too. For example:
- Switching your number with institutions such as the Internal Revenue Service and other entities can be time-consuming.
- Credit reporting companies use more than just your Social Security number to identify you, so all of your credit problems might not go away.
- Getting new credit might be difficult because of your new number's lack of credit history.
You’ll likely want to avoid carrying your card with you unless you know you'll need it, and never send your number over email or give it out over the phone. Your Social Security number is confidential, and in nearly all situations, disclosing it is your choice, even when you’re asked for it directly. If someone asks you for your number, you’ll want to find out why it’s needed and the ramifications if you refuse to provide it.
5. Let Other Creditors and Important Parties Know About the Theft
Close accounts, like credit, bank, ATM, and phone accounts that have been tampered with and open new ones with new PINs and passwords. If you find out about a new account, like a new credit card account, that you didn't apply for, contact that company immediately.
It's also a good idea to notify the post office if you think the thief filed a bogus change of address form on your behalf and also to ask utility and phone companies to remove any fraudulent charges.
6. Take Measures to Help Prevent Identity Theft
You can take additional steps to prevent the theft of your personal information in the future. For example, most people know that they shouldn't carry their Social Security card in their wallets. However, other precautionary measures you can take include:
- Changing your online passwords and using stronger passwords.
- Never clicking on email links if you don’t recognize the sender or return email address.
- Shredding all important papers instead of throwing them in the trash.
- If mail theft is a problem in your area, exploring solutions with your local post office.
- Reviewing your credit reports frequently. Remember, you can get free reports weekly from each major credit reporting bureau (TransUnion, Equifax, and Experian).
Talk to an Attorney
If you need help straightening out your finances, dealing with debt collection agencies, or getting credit bureaus to remove fraudulent information from your credit report after an identity thief opens new accounts in your name, consider talking to a lawyer. An attorney can also advise you of all rights and the remedies available under federal and state law.