Skip to Main Content

What to Do If Your Identity Is Stolen

No one wakes up in the morning hoping to deal with a stolen identity. But it can happen to anyone and could mean personal details like your Social Security number or bank account are being used to do anything from going on shopping sprees to filing a tax return in your name. 

Getting everything back to the way it was can feel like a mountain to climb over the next several months. How do you even begin to put things straight?

But you can get out of this mess and get back in control of your personal information.  

Here’s what you need to do:

1. Ask for a fraud alert to be placed on your credit account.

If you discover you’ve been a victim of identity theft, contact one of the three main credit bureaus (Experian, Equifax and TransUnion) and have them place a fraud alert on your information. Once you’ve contacted one agency, they’ll let the other two know.

Do you have the right ID theft protection? Get covered in minutes.

Having a fraud alert in place is helpful if you were involved in a data breach or had your Social Security card, driver’s license or bank account information stolen. If someone tries to apply for a loan or new credit card with your info, the credit bureau lets creditors know an extra security check needs to happen to confirm the applicant’s identity.

Placing a fraud alert doesn’t cost you anything, and it can be renewed annually. You can also request an extended fraud alert that lasts up to seven years if you have been a confirmed victim of identity theft and have filed a report with the Federal Trade Commission (FTC). And if you have an extended fraud alert, you can get two free credit reports from each of the credit bureaus every year.  

2. Put a freeze on your credit report with all three credit bureaus.

Putting a freeze on your credit report is different from a fraud alert because it cuts off anyone from getting access to your credit report without your permission. With a credit freeze, you’ll have to contact all three credit bureaus individually, but it’s still free!

Once your credit report is frozen, the credit bureaus can’t release your credit information without your permission to lift the freeze, and you’ll have to do that either over the phone, online or in writing. You’ll want to lift the freeze if you’re applying for a job or moving to a new home and your credit report needs to be checked.

You can put a freeze on your report even if you’re not sure you’ve been a victim of identity theft, so it’s an effective, proactive step to take.  

But the main aim of a credit freeze is to make it harder for someone who stole your personal information to take on debt in your name. The fraud alert we mentioned earlier is what stops thieves from getting any further (because of that extra security check).

3. File a police report.

Since it is a crime to steal someone’s personal identity and use it to commit a fraudulent act, you should file a police report. Even if it looks like the thief is operating online or in a different country, you should still contact your local police department to file a report. 

This is important for a few reasons:

  • Filing a police report can help support your claim when you’re dealing with any incoming collection calls wanting you to pay accounts that were opened in your name.

  • You’re helping the police with any ongoing identity theft cases they might be working on—especially if the thief is operating locally.

  • If the thief uses your information to commit another crime (in your name!), the police will have a record of you filing this initial identity theft incident that can help their investigation.

4. File a report with the Federal Trade Commission (FTC).

When it comes to identity theft, time really is money. Your next step is to make sure you’ve notified the Federal Trade Commission of your stolen identity through their online service.

If you report your identity theft to the FTC within two business days of discovering it, you will only be liable to pay $50 of any unauthorized use of your bank and credit accounts (under federal law). The longer you leave it, the more that financial liability falls on your shoulders.1

Once you’ve filed your report, you’ll be able to put together your own recovery plan with their help, along with some assistance in each step. Just get ready to buckle in for a long journey.

You can then track the recovery progress of your personal information. Within their recovery plan, the FTC will help you fill out forms and will provide sample letters when you’re writing to credit bureaus, banks or debt collectors—or anyone else you might have forgotten about. Because finding the right words (other than “help!”) can be tough during a time like this.

Having this official FTC report also helps confirm that your identity was stolen when you’re writing to debt collectors or fraud departments, and when you’re filing a police report.

5. Check your bank and credit card statements and credit reports.

If you haven’t already, take some time to comb through your bank account and credit card statements, along with your current credit report.

You can request your credit report for free from each of the reporting agencies through once a year. Stagger these so you can check one credit report every four months.  Look at these documents and flag anything that screams, “I didn’t open that account!” Now is the time to highlight them to help your case.

Then, you can dispute any information on your credit report that’s false, incorrect and a result of the identity theft.

6. Get any fraudulent account records from debt collectors.

Don’t ignore any letters or calls you may receive from debt collectors following an identity theft. Stay ahead of the game by informing them in writing of your identity being stolen. You should also give them a copy of your FTC report to back it up.

Here’s what you can ask from debt collectors when you write to them:   

  • Ask to see any information (from the telephone number used by the fraudster to open the fake account to copies of application forms and statements listing fraudulent transactions) they might have on you resulting from the identity theft.

  • Ask them to stop contacting you with collection notices that you don’t owe. Let's face it: No one likes hearing from debt collectors—but especially not when it isn’t your fault in the first place!

Remember: You are within your rights to obtain written information about that debt—but you have to put your request in a physical letter to the debt collector. The FTC even provides sample letters for you. And if you’re looking for extra peace of mind, send your letter with a Certified Mail Receipt so you can track when they’ve received it.

By writing to the debt collectors, you’re also ensuring that they’re prohibited from reporting any fraudulent accounts that have been set up in your name to the credit bureaus.

7. Contact your bank’s fraud department.

Your bank has a fraud department, so call to tell them what happened. They’ll let you know what steps to take regarding your current bank account. They might even advise you to close your accounts and open new ones if it means limiting the damage of the theft.  

8. Contact your utility provider and other account fraud departments.

Fraudsters can use your information to set up anything from medical insurance to utilities in your name. We know—it’s ridiculous.

If any utility providers, credit card companies, loan specialists, debt collectors or insurance companies are sending you bills for things you don’t actually owe, you need to reach out to them ASAP and let them know your identity was stolen.

Even if you haven’t received any bogus bills from your providers or credit card companies, go ahead and contact them anyway. Because if one of your accounts was hacked, chances are, the others are also at risk.

Stolen identities can even be used to file tax returns in your name. If you think your information has been used to file a fraudulent tax refund claim, contact the Internal Revenue Service (IRS).

9. Close any fake accounts that were created in your name.

Remember how you already combed through your credit report and noted charges that weren’t yours?

By now, you’ve contacted the three credit bureaus and the FTC, so it’s time to clean up and close down any accounts that have been opened without your knowledge.

Reach out to those companies’ fraud departments (whether it’s a bank, utility company or insurance provider) and shut down all the accounts falsely opened in your name. Use any FTC and reference numbers on your identity theft report to back you up.

10. Report if your personal identification was stolen.

If identification like your Social Security card, driver’s license or passport is stolen, you should contact the relevant agencies immediately so they’re aware of the theft and can start the process of replacing them:  

  • Social Security Card: Contact the Social Security Administration for a replacement online. If you suspect your Social Security number has already been used fraudulently, contact the Office of the Inspector General to report it.
  • Driver’s License: Contact your local Department of Motor Vehicles (DMV) to report the theft and get a replacement.
  • Passport: Contact the U.S. Department of State to report the theft and arrange a replacement.

11. Update your passwords and usernames.

Now it’s time to update those usernames and passwords. Change any passwords linked to accounts that were or could be affected by identity theft immediately. If you use the same password for every account you have, it’s time to change them all.

Your passwords should never match or contain your name or date of birth—that just makes them easier to guess! Things like “password0” and “abc123” just don’t cut it anymore. We recommend that you use a combination of upper and lowercase letters, numbers and special characters to keep it complicated and difficult for identity thieves to guess.

This, along with other steps to protect yourself from identity theft (like shredding sensitive documents and not carrying your Social Security card around with you), will help you be more secure in the long run.

12. Look at your recovery options.

By now, you might be starting to realize this whole recovery process can take a few months or even years, depending on how severe the damage is. That’s why it’s important to take action as soon as you realize your identity has been stolen.

The hours involved in getting your identity back really are a huge mountain to climb on your own. Does your bank or fraud protection even offer recovery and restoration services?

If it turns out your identity theft “protection” was no more than an email letting you know your identity was stolen, it’s time to get with the experts at Zander Insurance. Since they are a RamseyTrusted provider, you know they’ve got your back.

You can get comprehensive identity theft restoration services so that if this happens to you (or if it happens again), a Certified Recovery Specialist will save you countless hours and all the legwork that’s required to recover from an identity theft.

Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.

Related Articles

How to Prevent Identity Theft

How to Prevent Identity Theft

8 Minute Read | Insurance

In our digital world, it's completely necessary to arm ourselves against identity theft. Learn how to prevent ID theft and protect yourself for the future.

Ramsey Solutions  Ramsey Solutions

Checking Your Credit Report

How to Read Your Credit Report

8 Minute Read | Debt

Just because credit scores are bogus doesn’t mean you don’t need to read your credit report. We’ll walk you through how to read a credit report (without falling asleep, we promise).

Ramsey Solutions  Ramsey Solutions

impacts of a data breach

How a Data Breach Can Impact You

8 Minute Read | Insurance

Another day, another data breach. Learn how to protect yourself against the risk of identity theft.

Ramsey Solutions  Ramsey Solutions

Do You Have the Right Coverage? 

Do You Have the Right Coverage? 

Find out with our free 5-Minute Coverage Checkup!
Take the Coverage Checkup

Do You Have the Right Coverage?  

Find out with our free 5-Minute Coverage Checkup!
Take the Coverage Checkup