Identity Theft Recovery: What to Do If Your Identity Is Stolen

Discovering that someone has stolen your identity is a gut punch. You feel exposed, angry, and overwhelmed. That is a normal reaction. But recovery is a mechanical process, not an emotional one. Every step has a specific action, a specific order, and a specific document you need to create. This guide walks you through all of them.

Print this page. Bookmark it. Share it with someone who needs it. Because when identity theft happens, panic makes it hard to remember what to do next. Having the steps written down in advance turns a crisis into a checklist.

The Four-Step Recovery Process

Identity theft recovery has four phases. Do them in this order. Skipping ahead or doing them out of order creates gaps that thieves exploit.

Step	Action	Timeframe
1. Freeze	Lock your credit at all three bureaus	Immediately (within hours)
2. Report	File an FTC Identity Theft Report	Within 72 hours
3. Notify	Contact banks and card issuers	Within 72 hours
4. Dispute	Dispute fraudulent accounts with credit bureaus	Within 30 days

Step 1: Freeze Your Credit (Immediately)

This is the single most important step. A credit freeze stops the thief from opening any new accounts in your name. It takes 30 minutes and costs nothing. If you have not already frozen your credit, here is our step-by-step guide to freezing at all three bureaus.

Freeze at all three. Equifax, Experian, TransUnion. Doing one does not cover the others. A thief can try any of the three, so all three must be locked.

Step 2: File an FTC Identity Theft Report (Within 72 Hours)

The Federal Trade Commission runs IdentityTheft.gov, the official government portal for identity theft. Filing a report here creates your Identity Theft Report, which functions as an official affidavit. Banks, credit bureaus, and police departments use this document to verify that you are a victim, not the person who opened the accounts.

1. Go to IdentityTheft.gov
2. Click "Get Started"
3. Answer the questions about what happened (what accounts were opened, what information was stolen, when you discovered it)
4. The site generates a personalized recovery plan and an official Identity Theft Report
5. Save the report. Download the PDF. Print a copy. Store a backup. This document is your proof for every dispute you file.

Without this report, banks and credit bureaus can drag out disputes for months. With it, federal law requires them to act within specific timeframes.

Step 3: Notify Your Banks and Card Issuers (Within 72 Hours)

Call the fraud department of every bank, credit card, and financial institution where the thief may have used your identity. Each one has a fraud division. The phone number is on the back of your card or on your bank's website.

Tell them:

• "I am a victim of identity theft."
• "I have filed an FTC Identity Theft Report."
• "I need to close or dispute [specific account/transaction]."
• "I am requesting written confirmation that the dispute has been received."

After each call, send a follow-up letter by certified mail (return receipt requested) summarizing what was discussed. Keep the receipt. Paper trails matter. Phone calls disappear. Letters with tracking numbers do not.

Step 4: Dispute Fraudulent Accounts With Credit Bureaus (Within 30 Days)

After filing your FTC report and notifying your banks, the next step is removing fraudulent accounts from your credit file. This is what protects your credit score from the thief's actions.

You must dispute with each credit bureau separately. Send a dispute letter to Equifax, Experian, and TransUnion. Each letter should include:

• A copy of your FTC Identity Theft Report
• A copy of a government-issued ID (driver's license or passport)
• Proof of address (utility bill or bank statement)
• A list of the specific fraudulent accounts you are disputing
• A statement: "I am a victim of identity theft. The following accounts were opened without my consent. I am requesting that these accounts be blocked from my credit file."

Send all disputes by certified mail with return receipt. Keep copies of everything you send.

Fraud Alert vs. Credit Freeze: Which One Do You Need?

After recovering from identity theft, you need ongoing protection. You have two options:

Feature	Credit Freeze	Fraud Alert
What it does	Completely blocks lenders from accessing your file	Tells lenders to verify your identity before extending credit
Strength	Maximum (no access at all)	Moderate (access allowed with verification)
Duration	Permanent until you lift it	1 year (initial), 7 years (extended, for confirmed victims)
Cost	Free	Free
Setup	Must contact all three bureaus separately	Contact one bureau, they notify the other two

Recommendation: Freeze your credit. It is stronger, lasts until you choose to lift it, and is free. A fraud alert is a lighter option if you are actively applying for credit and need your file accessible. If you are an identity theft victim, you can request a 7-year extended fraud alert by submitting your FTC Identity Theft Report to the bureaus.

Other Steps You May Need

Report to Local Police

The FTC report is your primary legal document. Some banks and local jurisdictions also require a police report. If your bank asks for one, go to your local police station with your FTC Identity Theft Report, a government ID, and proof of address. File a report saying you are a victim of identity theft. Get the report number. You do not need to know who stole your identity to file.

Report to the USPS

If the thief redirected your mail (a common tactic), report it to the U.S. Postal Inspection Service at uspis.gov. Mail redirection lets thieves intercept bank statements, credit card offers, and tax documents.

Report to the IRS

If someone filed taxes in your name, contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. You will need to complete IRS Form 14039 (Identity Theft Affidavit) and submit it. The IRS will issue you an Identity Protection PIN (IP PIN), a 6-digit number required to file your taxes electronically. This stops thieves from filing in your name again.

Report to the SSA

If someone is using your Social Security number for employment, report it to the Social Security Administration Office of the Inspector General at oig.ssa.gov. This is rare but serious. It can affect your future benefits.

Documentation Checklist

Keep a folder (physical and digital) with these documents:

• FTC Identity Theft Report (printed PDF)
• Police report (if filed)
• Certified mail receipts for all dispute letters
• Copies of all dispute letters sent to bureaus
• Written confirmations from banks of received disputes
• Log of every phone call (date, time, who you spoke with, what they said)
• Credit freeze PINs from all three bureaus
• Correspondence from creditors regarding fraudulent accounts

This folder is your ammunition. If a disputed account reappears on your credit report, if a debt collector calls about a fraudulent debt, or if a new account you did not open shows up, this documentation is what makes the problem go away.

If You Only Remember Three Things

---