Identity theft: what to do if it happens to you

Identity theft hit 1.4 million Americans in 2023 according to the FTC. The faster you respond, the more you can contain. Here is the 7-step plan.

1. Place a fraud alert immediately

Call any one of the three credit bureaus (Equifax, Experian, TransUnion). They are required by law to notify the other two. The 1-year alert is free. With a police report, you get a 7-year extended alert.

2. Freeze your credit at all three bureaus

Stronger than an alert. No new accounts can be opened without your PIN. Free, takes ~10 min per bureau online. Equifax (equifax.com), Experian (experian.com), TransUnion (transunion.com). You can also freeze with ChexSystems for bank account abuse.

3. Report to the FTC at IdentityTheft.gov

The FTC site generates a personalized recovery plan and an official Identity Theft Report you will need for disputes. This is the most important single step.

4. File a police report

In most cases, your local police will take a report even without suspect info. Some lenders require it before erasing fraudulent accounts. Bring the FTC report and any documentation.

5. Contact each affected company directly

Call the fraud department (not customer service) of every bank, lender, or merchant where fraud occurred. Request the account closed, charges removed, and a written confirmation. Keep records of every call.

6. Get an IRS IP PIN

If your SSN was exposed, enroll in the IRS Identity Protection PIN program at irs.gov/getanippin. This blocks anyone else from filing a tax return in your name. Critical because tax-fraud refund theft is one of the largest identity-theft loss categories.

7. Monitor for 12+ months

Identity thieves often hold information for months before using it. Use AnnualCreditReport.com (free, weekly reports) to check Equifax, Experian, TransUnion. Many credit cards offer free monitoring; opt in.