What to Do After Identity Theft: A Practical Step-by-Step Guide
Identity theft can involve an existing account, a new loan, a fraudulent tax return, medical services, government benefits, or even an arrest made under someone else’s name.
The correct response depends on what information was stolen and how it was used. Start with active financial losses and account security, then document the theft and address each affected record.
1. Stop Active Losses
Contact the fraud department of every bank, lender, card issuer, retailer, or other company where misuse occurred. Use contact information from an official statement, card, or verified website rather than an unexpected message.
Ask the company to:
Block or close compromised accounts
Stop pending transactions when possible
Replace affected cards or account numbers
Remove unauthorized users
Preserve records related to the fraud
Explain its written dispute process
Report unauthorized transactions promptly. Consumer protections and reporting deadlines differ depending on whether the loss involves a credit card, debit card, bank transfer, check, or payment app.
Keep notes showing whom you contacted, when you called, and what the company agreed to do.
2. Secure Important Online Accounts
Change the password for the compromised account and any other account using the same or a similar password. Start with the email account because it may be used to reset passwords elsewhere.
Use a unique password for each account and enable multifactor authentication where available. Review:
Recovery email addresses and phone numbers
Recently signed-in devices
Automatic forwarding rules
Connected apps
Saved payment methods
Security questions
Recent account changes
Sign out unfamiliar devices and remove settings you did not create. If a phone number may have been transferred through a SIM-swap attack, contact the mobile carrier and add an account PIN or other protection.
3. Report the Theft at IdentityTheft.gov
Report the incident to the Federal Trade Commission at IdentityTheft.gov. The site creates an FTC Identity Theft Report and a recovery plan based on the type of theft reported.
Include as much accurate information as possible. Save or print the report, recovery plan, and prefilled letters. If you proceed without creating an account, save the documents before leaving because they may not remain accessible.
The FTC report can help establish that accounts or transactions resulted from identity theft. Credit bureaus and businesses may request it when blocking fraudulent information.
A data breach does not necessarily mean identity theft has occurred. If information was exposed but has not been misused, protective measures such as password changes and credit freezes may still be appropriate.
4. Freeze Your Credit Reports
A credit freeze restricts access to a credit report, making it more difficult for an identity thief to open a new credit account. Placing and lifting a freeze is free and does not affect a credit score.
Contact each nationwide credit bureau separately:
Equifax
Experian
TransUnion
A request sent to one bureau does not freeze the other two reports. Keep the confirmation information needed to manage each freeze.
A freeze lasts until it is lifted. It does not stop fraud involving existing accounts, bank withdrawals, tax returns, medical services, or other activity that does not require a credit check.
5. Consider a Fraud Alert
A fraud alert tells businesses to verify identity before issuing new credit. Unlike a freeze, it does not prevent a creditor from accessing the report.
An initial fraud alert is free, lasts one year, and can be renewed. Contacting one nationwide credit bureau is sufficient because that bureau must notify the other two.
Someone who has experienced identity theft and has an FTC Identity Theft Report or police report may qualify for an extended fraud alert lasting seven years. A consumer may use both a credit freeze and a fraud alert.
6. Review All Three Credit Reports
Obtain reports through AnnualCreditReport.com, the federally authorized source for free reports from Equifax, Experian, and TransUnion.
Look for:
Accounts you did not open
Credit inquiries you do not recognize
Incorrect addresses or employers
Debts or collections that are not yours
Unexpected changes to legitimate accounts
Reports may contain different information, so review all three. Follow each bureau’s identity-theft procedure to dispute or block fraudulent entries. Include the FTC Identity Theft Report and supporting documents when requested.
Also contact the company that supplied the incorrect information. Correcting a credit report does not automatically close the fraudulent account with the creditor.
7. Decide Whether to File a Police Report
The FTC states that an identity-theft victim may choose to file a report with local police. A police report may be especially useful when:
The thief is known
A business requires a report
Physical documents were stolen
The theft involved an arrest or criminal record
There is a substantial financial loss
Bring identification, proof of address, the FTC Identity Theft Report, account statements, and other evidence. Request a copy of the completed report.
If someone used your identity during an arrest or court proceeding, contact the involved law-enforcement agency and court immediately. Ask what procedure is available to correct the records and obtain written proof of clearance.
8. Address Specialized Forms of Identity Theft
Additional steps may be necessary depending on how the information was used.
Tax Identity Theft
Respond promptly to genuine IRS correspondence using the contact information printed on the notice. Continue filing required tax returns, even if a fraudulent return has already been submitted.
The IRS recommends obtaining an Identity Protection PIN, or IP PIN. This six-digit number helps verify identity when a federal tax return is filed and changes each year.
Do not automatically submit Form 14039, Identity Theft Affidavit, in every case. Follow current IRS instructions because many taxpayers do not need the form when the IRS has already provided another verification process. Contact the appropriate state tax agency about state-level tax fraud.
Medical Identity Theft
Request copies of medical and insurance records and dispute treatments, prescriptions, or claims that are not yours. Incorrect medical information can affect both billing and future care, so ask the provider to separate the thief’s information from the genuine medical record.
Government Benefits or Employment Fraud
Contact the agency administering the affected program. Unemployment fraud, Social Security misuse, and employment-related identity theft may each require different forms and supporting documents.
Stolen Identification
Report a stolen driver’s license, passport, Social Security card, or other government identification to the issuing agency. Follow that agency’s replacement and fraud-reporting instructions.
9. Keep a Recovery File
Identity-theft recovery can involve several organizations over an extended period. Maintain one file containing:
The FTC Identity Theft Report
Any police report
Copies of fraudulent bills and accounts
Credit reports and disputes
Letters and emails
Mailing or submission confirmations
Case numbers
Notes from telephone calls
Receipts for related expenses
Send copies rather than original documents. When mailing an important dispute, consider a trackable method and retain delivery confirmation.
10. Continue Monitoring
Review bank, credit card, insurance, medical, tax, and credit-report activity after the immediate problems appear resolved. Identity thieves may retain information and try to use it again later.
Be cautious of recovery scams. Government agencies do not demand that victims transfer money, buy gift cards, purchase cryptocurrency, or move funds to a supposedly protected account.
Identity theft recovery is usually a series of targeted corrections rather than one report that fixes everything. Securing accounts, freezing credit, creating an FTC report, and maintaining complete records provide a strong foundation for addressing each fraudulent account.
This article provides general information, not individualized legal or financial advice. Reporting deadlines, liability protections, agency procedures, and available remedies depend on the type of theft and applicable law.
