Immediate priorities after you discover identity theft

When you learn your personal data was used without your permission, act quickly and deliberately. In my practice helping dozens of victims each year, the fastest recoveries come from a prioritized response: stop ongoing theft, document the crime, and start correcting records.

  1. Secure accounts and stop further loss
  • Change passwords on impacted accounts and any reuse variations. Use strong, unique passwords and a reputable password manager. Enable two-factor authentication (2FA) wherever possible.
  • Contact banks and card issuers to report fraud, freeze or close compromised accounts, and request replacement cards. Ask for written confirmation of claims and next steps.
  1. Report the crime to the FTC and create a recovery plan
  • File a report at IdentityTheft.gov (FTC). The site generates a personalized recovery plan and an identity theft affidavit you can use with creditors and credit bureaus (FTC: https://www.identitytheft.gov). In my experience, articles of evidence supplied to creditors are processed faster when accompanied by the FTC report.
  1. Call your local police and obtain a police report
  • File a police report where the theft occurred. Keep a copy for disputes and for extended fraud alerts or identity verification with institutions.
  1. Place a fraud alert or freeze your credit
  • Place an initial fraud alert (typically lasts one year) or an extended fraud alert (7 years for confirmed identity theft) through one bureau; that bureau must notify the other two (CFPB/FTC guidance). Consider freezing your credit with all three major bureaus—Experian, TransUnion, and Equifax—to block new accounts (free nationwide since 2018). Keep any PINs or passcodes the bureaus give you and store them securely.
  1. Get free copies of your credit reports and review them
  • Request your reports at AnnualCreditReport.com (CFPB-backed) and review every account, hard inquiry, and address. Note items you didn’t open or inquiries you didn’t authorize.

Documenting and disputing fraudulent information

Good documentation moves disputes along.

  • Keep copies of everything: FTC report, police report, correspondence with creditors and bureaus, statements showing fraud, and any dispute confirmation numbers.
  • Dispute fraudulent accounts or charges with the lender first, and file a dispute with each credit bureau that lists the fraudulent item. Follow bureau instructions for identity theft disputes—many accept the FTC affidavit and supporting documents to escalate processing.
  • For written disputes, include a clear statement, copies of your identity documents (not originals), and any proof of fraud. Send by certified mail and keep receipts.

Authoritative resources: the Consumer Financial Protection Bureau explains credit report disputes and your rights under the Fair Credit Reporting Act (FCRA) (https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/).

Tax-related identity theft: special steps

If someone files a tax return using your Social Security number, act immediately:

  • Visit the IRS Identity Theft Central and follow their steps (https://www.irs.gov/identity-theft-fraud-scams). The IRS may ask you to file Form 14039, Identity Theft Affidavit, or follow instructions at IdentityTheft.gov.
  • Apply for an Identity Protection PIN (IP PIN) if you qualify or are accepted into the IRS IP PIN program; an IP PIN prevents others from filing a return using your SSN.
  • If the IRS notifies you by mail that your return was rejected or flagged, follow the notice instructions and provide requested documentation. In my cases, early communication with the IRS has reduced resolution time.

Also see our related guide: Protecting Yourself from Tax-Related Identity Theft: Prevention and Recovery (https://finhelp.io/glossary/protecting-yourself-from-tax-related-identity-theft-prevention-and-recovery/).

Longer-term credit repair and monitoring

  • After disputes are filed and fraud is marked, get updated credit reports and confirm the removal or correction of fraudulent entries. Some removals happen quickly; others require persistent follow-up.
  • Consider a credit monitoring service or commercial identity-theft protection if you prefer hands-off monitoring. These services vary: many offer dark-web scans, alerting, and insurance for certain losses. Evaluate coverage limits and exclusions—insurance rarely covers consequential damages like time spent recovering your identity.
  • For help fixing credit-report errors tied directly to identity theft, use the FTC’s resources and your state attorney general’s office if disputes stall.

For credit-report specific guidance, review our article: Identity Theft on Credit Reports: Detecting and Fixing Fraud (https://finhelp.io/glossary/identity-theft-on-credit-reports-detecting-and-fixing-fraud/).

Security hardening: preventing repeat attacks

  • Replace compromised documents and cards immediately (bank cards, driver’s license). If your Social Security number was misused, contact the Social Security Administration only if instructed by the IRS or law enforcement.
  • Use unique passwords and a password manager. Turn on 2FA on email, financial, and social accounts. Prefer authenticator apps or hardware tokens rather than SMS where available.
  • Secure your mail: consider a locking mailbox and sign up for electronic statements. Protect sensitive documents by shredding before disposal.
  • Remove exposed data from online services where possible and enable privacy settings on social media.

Children, seniors, and high-risk profiles

  • Children’s credit is often unused, so theft can go undetected for years. If a child is a victim, file a police report, an FTC report, and request a child-specific credit check. Consider placing a freeze on the child’s credit files.
  • Seniors may be targeted by phone or romance scams. Use power-of-attorney safeguards prudently and monitor accounts regularly.
  • For high-net-worth individuals or businesses, use a tailored response plan that includes tighter access controls, dedicated monitoring, and breach response protocols. See our specialized plan: Identity Theft Response Plan for High-Net-Worth Individuals (https://finhelp.io/glossary/identity-theft-response-plan-for-high-net-worth-individuals/).

Common mistakes I see and how to avoid them

  • Waiting to act: even small delays give thieves time to open accounts or file returns.
  • Closing a credit file or moving accounts without documentation: keep a paper trail and confirmations.
  • Paying for basic protections you can get free: credit freezes and initial fraud alerts are free.

How long does recovery take?

Recovery time varies. Simple unauthorized card charges can be resolved within weeks; complex identity theft (multiple accounts opened, tax fraud) can take months or longer to fully clear from credit files and government records. Expect to follow up repeatedly. In my work, consistent documentation and persistent follow-up shorten average resolution times.

When to hire a professional

  • Consider a consumer law attorney if fraud is extensive, creditors refuse to correct records, or if you face identity theft-related litigation.
  • Consider a certified identity-restoration service if you lack time or find the process overwhelming. Verify credentials and read contracts—watch for firms charging up-front fees for services you can do yourself.

Sources and further reading

Professional disclaimer

This article is educational and reflects general best practices based on my experience as a financial educator. It is not personalized legal, tax, or financial advice. For case-specific help, consult a qualified attorney, tax professional, or your financial institution.

Closing note

Identity theft is stressful but manageable: immediate action, careful documentation, and sustained monitoring are the pillars of recovery. Use the checklists and links above to build your recovery packet and pace your follow-up until your records are fully corrected.