How to Recover From Identity Theft

Immediate steps to take

Recovering direct financial losses from identity theft becomes more difficult over time, so it’s crucial that you take immediate action when you suspect you’ve fallen victim to identity theft. Take these steps right away:

1. File an affidavit with the Federal Trade Commission (FTC). You can fill out an online form to file an affidavit or contact the FTC by phone at 877-438-4338.
2. Report fraud to local police. Go in person to your local police department to report the fraud. Authorities will ask for an ID, proof of residence, documentation indicating ID theft and a copy of your FTC Affidavit.
3. Contact your banks. Contact any companies or financial institutions involved in the fraud and let them know about fraudulent charges or new accounts opened in your name. Ask them to cancel the charges or freeze the accounts.
4. Notify the credit bureaus. Report the fraud to one of the three credit bureaus. The bureau you contact is obligated to report the fraud to the other two. You can place an alert online or call.
   • Equifax: 1-800-685-1111
   • Experian: 1-888-397-3742
   • TransUnion: 1-888-909-8872

The sooner you take these steps, the more likely you can recover from the fraud quickly, reverse pending charges on credit and debit cards and recuperate any funds you lost from financial accounts.

Protecting your credit

Additional tips to prevent further damage include freezing your account and changing passwords to begin restoring your identity.

• Request a free credit report on AnnualCreditReport.com and add it to your documentation.
• Review your credit report to check for identity theft, including irregularities, unfamiliar accounts and inaccurate addresses.
• Consider placing a freeze on your credit report. You’ll have to contact each bureau individually to do this, but it’s worth the time. It makes it impossible to open new accounts using your identity without you being physically present.
• Change your passwords for any online account with a company or financial institution that was involved in the fraud.

Reporting identity theft

One of the first things you should do is report identity theft to the FTC. When you do, you’ll sign an affidavit that states you believe you were a victim of identity theft.

If you have identity theft insurance, your case manager may do some of the more time-intensive tasks related to identity recovery for you.

The FTC will provide you with a personalized recovery plan, and you can track your progress online if you create an account. Your local law enforcement agency may also be able to provide the next steps based on your particular situation.

If you have identity theft insurance or a protection plan in place, you should also notify your insurer or plan provider of the fraud and file a claim. Your case manager may request documentation, as well, and they will usually provide additional guidance.

Ongoing monitoring and recovery

Recovering from identity theft is a long process. While you should immediately mitigate the damage, long-term actions will identify new instances of fraud and help move the recovery process along. While restoring your identity, consider these actions on an ongoing basis.

• Close new accounts: If you find new financial, utility or other accounts on your credit report, contact those companies to report the fraud and close them. Make sure to get written confirmation.
• Dispute fraudulent charges: Report the fraud to companies where fraudulent purchases were made, and ask them to reverse the charges. Obtain written confirmation of the reversal.
• Monitor your credit report: You can request weekly credit reports from each credit bureau to keep an eye out for new fraud. Look for new accounts, address additions or changes and other suspicious activity.
• Dispute errors on your credit reports: If you do find errors or inaccurate information as a result of fraud, you can file disputes with each credit bureau and ask for a correction.
• Document your activity: Finally, document all conversations you have related to your identity theft case. You may need to provide this to the FTC, your ID theft insurance company or other entities to make your case.

If you find new evidence of fraud, repeat the process of notifying the FTC, the companies involved in the fraud, the credit bureaus and any related financial institutions. You should also relay the information to your case manager if you have identity theft protection insurance.

For instances of fraud related to stolen government IDs, you can also request new documents to invalidate the old ones.

• For stolen Social Security cards, apply for a new card on the Social Security Administration’s website.
• For stolen driver’s licenses, contact your local Department of Motor Vehicles office.
• For a stolen passport, call the National Passport Information Center at 1-877-487-2778. If you plan to travel in the next two weeks, go to a local Passport Agency. You can find one on the U.S. Department of State’s website.

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Preventing future identity theft

Unfortunately, victims of identity theft are more likely to be targeted in the future, so taking steps to prevent future attacks is crucial after you mitigate damage from the initial attack. The following are steps you can take to reduce the risk of identity theft in the future.

• Ongoing credit report monitoring: Set reminders for yourself to pull and monitor your credit reports going forward. Look for suspicious or unfamiliar activity, and report discrepancies immediately.
• Keep an eye on your financial accounts: Make it a habit to review activity on your checking accounts, saving accounts, credit cards and debit cards. It’s also a good idea to monitor activity on retirement accounts and other financial accounts.
• Consider paying for identity theft insurance: Identity theft insurance won’t guarantee that you’ll be safe from issues in the future, but it can dramatically reduce your risk. Some providers include identity restoration services, too, which can help expedite the recovery process. Identity theft insurance costs between $84 and $360 a year.
• Educate yourself about common scams: Keep up-to-date about common scams. The Federal Bureau of Investigation maintains a list of scams to be on the lookout for.
• Consider online protection services: Consider investing in online protection, which can include ad blockers, virtual private networks (VPNs), spam filters, virus protection and more.

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