Steps to Take After an Identity Theft Incident

Immediate priorities (first 24–72 hours)

1. Confirm the theft and document everything. Start by making a timeline: when you noticed suspicious activity, which accounts are affected, and any emails, calls, or documents related to the fraud. Save screenshots, statements, and copies of emails. In my practice, clients who document the first signs clearly get faster outcomes with banks and credit bureaus.

2. Report the theft to the FTC at IdentityTheft.gov. The FTC’s site generates a personalized recovery plan and an identity-theft affidavit that many creditors and agencies accept as supporting documentation (IdentityTheft.gov). File online and print the recovery plan; it streamlines later disputes.

3. Contact the financial institutions involved. Call the fraud or disputes number on each affected account (credit cards, bank accounts, loans). Ask the issuer to: close or freeze the account, block further charges, issue new account numbers, and confirm any liability limits or provisional credits. U.S. consumer protections and most issuers provide rapid relief when fraud is reported promptly.

4. Place a fraud alert and/or freeze your credit. A fraud alert makes it harder for someone to open new accounts in your name; a credit freeze blocks most new credit applications entirely. Fraud alerts can be started by contacting any one of the three major credit bureaus (Equifax, Experian, TransUnion) and the bureau will notify the others; credit freezes must be placed with each bureau individually and are free nationwide (FTC, Consumer Financial Protection Bureau). Choose a freeze if you believe your personal information — especially your Social Security number — has been exposed.

5. Get your credit reports and review them carefully. Order copies of your credit reports at AnnualCreditReport.com and look for unfamiliar accounts, addresses, or inquiries. After identity theft, check reports more often than the usual annual frequency and use the FTC’s checklist to prioritize disputes.

The step-by-step recovery process

1. Use the FTC recovery plan and identity-theft affidavit

• Follow the instructions from IdentityTheft.gov to create an affidavit and recovery plan you can share with creditors and the police. This paperwork helps speed verification and dispute processes.

1. File a police report when appropriate

• File with the local police department where you live or where the crime occurred. Bring your FTC affidavit, a government photo ID, proof of address, and evidence of the theft (statements, screenshots). A police report is not always required, but it strengthens your case with creditors and for an extended fraud alert or disputes.

1. Dispute fraudulent items with creditors and the credit bureaus

• Submit written disputes to the company reporting the fraudulent account and to each credit bureau that lists it. Under the Fair Credit Reporting Act (FCRA), credit bureaus must investigate most disputes within 30 days (FCRA). Keep copies of all correspondence and use certified mail when sending dispute documents. For step-by-step help on correcting credit-report identity-theft entries, see our guide: Correcting Identity Theft Entries on Your Credit Report.

1. Add a fraud alert or extended fraud alert

• An initial fraud alert generally lasts one year and warns creditors to take extra steps to verify identity. If you provide an identity-theft report and indemnifying documentation, you may be eligible for an extended fraud alert that can last seven years (FTC).

1. Consider placing a security freeze

• Freezes are stronger than alerts: they prevent most new credit lines until you lift them. Each bureau must provide instructions and a unique PIN or password for temporary lifts.

1. Add a consumer statement to your credit report

• If disputes take time or you want lenders to see your side, add a short consumer statement explaining you were a victim of identity theft. Our walkthrough on adding a consumer statement explains the process: How to add a consumer statement to your credit report.

1. Close or secure affected online accounts

• Change passwords to strong, unique passphrases and enable two-factor authentication (2FA) for every important account (email, financial accounts, retirement accounts). If a breached account used the same password elsewhere, change those passwords immediately.

1. Monitor for tax-related identity theft

• The IRS warns that criminals sometimes file fraudulent tax returns using stolen SSNs. If you get a notice from the IRS about multiple returns filed in your name, follow IRS Identity Theft guidance and contact the IRS Identity Theft Specialized Unit. Save tax notices and include them with your FTC and police reports.

Specific documentation to gather

• Copies of credit card or bank statements showing fraudulent transactions
• The FTC identity-theft affidavit and recovery plan printout
• Local police report number and a copy of the report
• Proof of identity (government ID) and proof of address
• Correspondence with creditors, debt collectors, and credit bureaus

Keep a dedicated folder—digital and physical—so you can produce documents quickly when creditors or bureaus ask for verification.

How dispute investigations typically work (what to expect)

• When you dispute an item with a credit bureau, the bureau must investigate, usually within 30 days. They contact the creditor that reported the item, which must verify or correct the information. If the item can’t be verified, it should be removed.
• Keep track of timelines. If the bureau doesn’t resolve the dispute, you can add a consumer statement and escalate to regulators or consider contacting a consumer law attorney for complex cases.

Practical prevention and long-term monitoring

• Enroll in account alerts for banking and credit cards so you receive immediate push, text, or email notifications for transactions.
• Consider a credit monitoring or identity-theft protection service if you want automated alerts and recovery assistance; compare services for features and reputation before subscribing.
• Freeze or secure your Social Security number documents. The Social Security Administration rarely changes SSNs — it’s usually reserved for extreme cases — so focus on monitoring and mitigation.
• Train family members, employees, or trustees about phishing and data-handling practices to reduce the chance of future breaches if you run a small business or household shared accounts.

When to hire professional help

• Hire a consumer credit attorney or identity-theft recovery service if you hit roadblocks: unverifiable debts, persistent identity fraud, or if the theft caused legal or tax complications. In my experience, targeted legal help speeds resolution for complex cases, but weigh costs and credentials before hiring.

Useful links and authoritative resources

• Federal Trade Commission: https://www.ftc.gov — identity theft guidance and consumer protections.
• IdentityTheft.gov: https://www.identitytheft.gov — file the FTC complaint and get a recovery plan.
• AnnualCreditReport.com: free access to credit reports from Equifax, Experian, and TransUnion — order and review reports closely after theft (https://www.annualcreditreport.com).
• CFPB Identity Theft resources: https://www.consumerfinance.gov/consumer-tools/identity-theft/ — tips and rights under federal law.

Internal resources from FinHelp

• Correcting identity-theft entries on your credit report: Correcting Identity Theft Entries on Your Credit Report
• How to add a consumer statement to your credit report: How to add a consumer statement to your credit report
• How to get a free credit report: How to Get a Free Credit Report

Common mistakes to avoid

• Waiting to report: delay makes recovery harder and can increase liability for some accounts.
• Not freezing credit: if your SSN is exposed, a freeze is a fast, effective barrier against new account fraud.
• Ignoring small anomalies: unfamiliar addresses, unexpected credit inquiries, or authentication emails can be early warning signs.

Quick checklist (printable)

• [ ] File at IdentityTheft.gov and print the recovery plan
• [ ] Contact affected banks and card issuers
• [ ] Place a fraud alert and consider credit freezes at all three bureaus
• [ ] Order credit reports and start disputes for fraudulent accounts
• [ ] File police report and keep the report number
• [ ] Change passwords and enable 2FA
• [ ] Save all documentation in one folder

Professional disclaimer

This article is educational and not legal or financial advice. Identity-theft cases vary. Consult a qualified attorney, tax professional, or your financial institution for advice tailored to your situation.

If you want, I can also provide a template dispute letter, sample police-report checklist, or a customizable recovery timeline based on the specific type of identity theft you experienced.