Identity Theft Recovery: Your Complete Action Plan
Identity theft requires immediate and systematic response to limit damage. The FTC IdentityTheft.gov site provides personalized recovery plans. Steps include placing fraud alerts and credit freezes, filing FTC reports, contacting affected institutions, and disputing fraudulent accounts. Recovery typically takes 6 months to several years depending on extent. This guide provides the complete action plan from discovery through resolution.
Prerequisites
- Evidence of identity theft (unauthorized accounts, mysterious bills, denied credit)
- Government-issued ID for verification
- Time and persistence for multi-month recovery process
Place Fraud Alert and Credit Freeze
Contact one credit bureau to place a fraud alert which will be shared with the other two automatically. Then place credit freezes at all three major bureaus: Equifax, Experian, and TransUnion. Credit freezes are free and prevent new accounts from being opened. Use unique PINs for each freeze that you store securely.
Report to FTC at IdentityTheft.gov
File an identity theft report at IdentityTheft.gov which generates a personalized recovery plan based on your specific situation. The FTC report serves as official documentation needed by creditors and credit bureaus to remove fraudulent accounts. Print and save copies of all reports.
File a Police Report
File a police report for identity theft with your local police department. While police rarely investigate individual identity theft cases, the report is often required by creditors as proof. Bring your FTC identity theft report and any documentation. Get a copy of the police report for your records.
Contact Affected Companies
Contact the fraud departments of each company where fraudulent accounts were opened. Provide your FTC report and police report. Request that fraudulent accounts be closed and removed from your credit history. Get written confirmation of closures. This step is often the most time-consuming part of recovery.
Tip: Always communicate in writing and keep copies. Phone calls without paper trails are difficult to prove later.
Dispute Credit Report Errors
Review your credit reports from all three bureaus and dispute every fraudulent account or inquiry. Use the dispute process at each bureau. Provide your FTC report and police report as supporting documentation. Bureaus must investigate within 30 days. Successful disputes will remove fraudulent items from your credit history.
Monitor Continuously
Continue monitoring credit reports, bank statements, and any accounts in your name for unusual activity. Identity theft can recur if your information remains exposed. Consider services that monitor for new account openings. Tax-related identity theft requires additional steps including IRS Form 14039.