What to Do If Your Identity is Stolen: Step-by-Step Recovery Plan

Finding out someone’s stolen your identity is more than frustrating-it’s invasive, overwhelming, and often expensive. You’re left scrambling to figure out what’s been accessed, how much damage has been done, and where to even begin fixing it. But you’re not alone, and you’re not powerless.

Identity theft is a growing threat that’s affecting Americans at staggering rates. In 2023, over 913,000 identity theft reports were filed nationwide. By 2024, that number surged to more than 1.13 million, a sharp 24.3% increase, according to the Federal Trade Commission.

Certain states like Massachusetts, Connecticut, and Ohio have seen their per capita identity theft rates triple since 2018. Adults in their 30s now account for nearly 30% of all reported cases, and Georgia continues to lead the nation in reports per capita for the second year running.

In total, Americans lost $47 billion to identity theft and fraud in 2024, up $4 billion from the year before.

If you’re here because your identity’s been compromised, don’t panic. This guide will walk you through every step, from immediate actions to long-term safeguards, to help you take back control and protect your financial future.

Key Takeaways

• In 2024, over 1.13 million identity theft reports were filed in the U.S., a 24.3% rise from the previous year.
• Start with a fraud alert or credit freeze to prevent further misuse of your identity.
• Review credit reports thoroughly and flag unfamiliar accounts, addresses, or inquiries.
• Contact each financial institution involved to close compromised accounts and request written documentation.
• File a report with the FTC at IdentityTheft.gov to generate an official recovery plan and legal documentation.
• Secure your accounts by changing passwords, enabling two-factor authentication, and reviewing login activity.
• For long-term protection, explore identity monitoring services and protective tools from Batten.

Identity Theft Recovery Steps

As you’re about to find out, an identity theft action plan actually looks quite simple, and with the right preparation, you can mitigate the potentially disastrous consequences of having your identity stolen.

Step 1: Place a Fraud Alert and Consider Freezing Your Credit

The first thing you should do after discovering identity theft is to block further unauthorized access. You can either place a fraud alert or initiate a credit freeze.

Fraud Alert

A fraud alert instructs creditors to take extra steps to verify your identity before opening new accounts. It’s free and lasts for one year, with the option to renew. When you contact any one of the three major credit bureaus, they will notify the other two on your behalf.

Here’s how to reach them:

• Experian: 1-888-397-3742 or experian.com
• Equifax: 1-800-525-6285 or equifax.com
• TransUnion: 1-800-680-7289 or transunion.com

If you’re considering broader protection options, check out this guide to the best fraud protection services for a full breakdown of tools that can help safeguard your identity.

Credit Freeze

A credit freeze offers more complete protection. It blocks access to your credit file entirely, which prevents new accounts from being opened in your name. You must contact each credit bureau individually and set a PIN or password to lift or remove the freeze later. Freezes remain in place until you take them off.

While a credit freeze is stronger, it may cause delays if you’re applying for a loan, signing a lease, or undergoing a background check.

For most people starting out, a fraud alert is enough to limit exposure while allowing flexibility. You can always switch to a freeze later if needed.

Step 2: Obtain and Review Your Credit Reports

Once your fraud alert is in place, request your credit reports from all three bureaus. Every U.S. resident can access one free report per bureau annually at AnnualCreditReport.com, the official site authorized by federal law.

If you’ve placed a fraud alert, you’re entitled to additional free reports.

What to Watch For

Review each report carefully. Focus on:

• Accounts You Don’t Recognize: These may be fraudulent
• Wrong Personal Details: Look for unfamiliar addresses or employers
• Unauthorized Hard Inquiries: These can signal that someone is applying for credit in your name
• Payment Issues: If an account shows missed payments and you’ve never seen it before, it may be fake

Document anything suspicious. Save PDFs, take screenshots, or print each report for your records. You’ll need this evidence when contacting financial institutions and filing formal complaints.

Step 3: Contact Financial Institutions and Close Compromised Accounts

Next, contact every institution tied to a suspicious account or transaction. Most banks and credit card issuers have 24/7 fraud departments ready to help.

When You Call

Have the following ready:

• Account numbers and any relevant personal details
• A clear explanation of what happened
• The date you noticed the fraud
• Copies of any supporting evidence

Request that they:

• Close and secure the compromised account
• Reverse fraudulent charges
• Issue a new account number or card
• Add security flags or multi-step verification
• Send you written confirmation of the actions taken

Document every call. Note the date, time, who you spoke to, and what was said. Follow up by email or certified mail to ensure a written record exists.

If any account wasn’t compromised but may be vulnerable, especially bank accounts, ask to change account numbers or enable extra protections like transaction alerts or multifactor authentication.

Step 4: File an Identity Theft Report With the FTC

Once you’ve contacted your financial institutions and reviewed your credit reports, your next step is to file an official identity theft report with the Federal Trade Commission (FTC). This creates a formal record and helps you access tools that support your recovery.

The FTC provides a free reporting tool at IdentityTheft.gov, where you can document the incident and generate a personalized recovery plan.

Why Filing with the FTC Matters

Submitting an identity theft report through the FTC provides several key benefits:

• Official documentation accepted by creditors and credit bureaus
• A step-by-step recovery plan tailored to your situation
• Pre-written letters and forms to send to banks, lenders, and other institutions
• Online progress tracking so you can stay organized

What You’ll Need to File

Gather this information before you start:

• The date you discovered the theft and how it happened
• Details of any fraudulent accounts or charges
• A list of actions you’ve already taken
• A police report, if you’ve filed one

Should You File a Police Report?

In many cases, the FTC report is enough. However, some creditors or agencies may request a police report for additional verification. It’s especially helpful if:

• The loss involves large sums of money
• The theft involves other crimes like burglary or mail fraud
• You need stronger documentation to support claims

Keep both reports if possible, as having layered evidence can help speed up claim reviews and account recovery.

Step 5: Secure Your Accounts and Change Passwords

After reporting the theft, you’ll need to protect any accounts that may still be vulnerable. Identity thieves often attempt to access existing logins using stolen data, so this step is critical to stopping further misuse.

Start with password changes, then strengthen your overall account security.

Change Passwords on High-Risk Accounts

Begin with the most sensitive accounts:

• Banks, credit cards, and investment platforms
• Email and cloud storage
• Online retailers with saved payment methods
• Work-related logins and productivity tools
• Social media accounts

Each password should be strong, unique, and not reused across platforms. If you’re managing more than a few accounts, a secure password manager like 1Password can help you organize and protect them with ease. If you don’t already use one, consider exploring password management solutions to prevent future security breaches.

Enable Two-Factor Authentication

Whenever possible, add two-factor authentication (2FA). This creates an extra layer of security, requiring a second form of identity verification such as a text message or app-generated code.

Review and Update Security Settings

Take time to audit each account:

• Update recovery emails and phone numbers
• Replace old security questions with stronger, less guessable alternatives
• Enable login alerts to monitor for unauthorized access
• Remove unfamiliar devices or authorized users

Even small updates can prevent major breaches.

Step 6: Address Specific Types of Identity Theft

Not all identity theft looks the same. Depending on what information was stolen, you may need to follow targeted steps to resolve specific types of fraud.

Here’s how to respond to some of the most common identity theft scenarios.

If Your Social Security Number Was Compromised

• Call the Social Security Administration at 1-800-772-1213
• Consider filing IRS Form 14039 (Identity Theft Affidavit)
• Review your Social Security Statement for suspicious records or work history

If Someone Filed a Tax Return in Your Name

• Submit IRS Form 14039 immediately
• Continue filing your actual tax return (you may need to file by mail)
• Contact your state’s tax agency if state returns were affected

If Your Medical Information Was Misused

• Notify your health insurance provider
• Review your Explanation of Benefits for charges you don’t recognize
• Request copies of your medical records to spot any fraudulent treatment entries
• Contact the Medical Information Bureau to add a fraud alert

If Your Mail Was Stolen or Rerouted

• File a report with the United States Postal Inspection Service
• Consider using a secure P.O. Box for sensitive mail
• Contact your bank, credit card company, and government agencies to confirm your correct mailing address

Addressing these issues quickly will prevent ongoing misuse and help restore your financial and personal records. If you need more support managing different types of identity theft, refer to our full guide on advanced protection strategies.

For comprehensive guidance on protecting yourself from various types of identity theft, review our detailed identity theft protection strategies.

Step 7: Monitor Your Accounts and Consider Long-Term Protection

Once the initial crisis is under control, your focus should shift toward preventing future incidents. Identity thieves often reuse or resell stolen information long after the first signs of fraud appear. That’s why consistent monitoring and strong protective measures are essential.

Start by reinforcing your vigilance through ongoing account monitoring. Then, decide if long-term professional protection is a good fit based on your risk level and past experience.

Set Up Account Monitoring

Early detection helps stop unauthorized use before it causes significant damage. You can stay on top of your finances by implementing the following measures:

• Review bank and credit card statements at least once per month
• Set transaction alerts for purchases above a set dollar amount
• Monitor your credit reports regularly through AnnualCreditReport.com
• Keep fraud alerts active or maintain a credit freeze if you’re not applying for new credit

Some financial institutions also allow push notifications for every transaction, which can help you spot suspicious activity in real time.

Consider Professional Identity Monitoring Services

If you’ve already dealt with identity theft, a professional service may offer greater peace of mind. These providers use specialized tools to watch for threats across financial, legal, and dark web sources, often detecting problems before they escalate.

The most reputable services include:

• Credit monitoring with all three bureaus
• Alerts for exposed information found on the dark web
• Dedicated recovery specialists to guide you through future incidents
• Insurance to help cover expenses tied to identity theft

While these services do carry a monthly fee, many users feel the added support and protection are worth the cost after experiencing the stress and time involved in self-managed recovery.

Recovery Timeline: What to Expect

Identity theft recovery is a process that can take weeks or months, depending on the extent of the damage. Here’s a general timeline of what to expect:

First 24-48 Hours

• Place fraud alerts or credit freezes
• Contact compromised financial institutions
• File an FTC identity theft report

First Week

• Review credit reports thoroughly
• Change passwords on all accounts
• Begin contacting creditors about fraudulent accounts
• File a police report if necessary

First Month

• Follow up with financial institutions on disputed charges
• Monitor mail for responses from creditors
• Continue securing accounts and updating passwords
• Begin monitoring credit reports regularly

Ongoing (3-6 months)

• Continue following up on disputes
• Monitor credit reports for new fraudulent activity
• Maintain documentation of all recovery efforts
• Consider long-term protection measures

Remember that some disputes may take time to resolve, and you may need to provide additional documentation or follow up multiple times. Persistence is key to successful recovery.

Conclusion

While identity theft is a serious crime that can cause significant stress and financial damage, it’s important to remember that recovery is possible. By taking immediate action, following the steps outlined in this guide, and maintaining vigilance going forward, you can regain control of your financial life and protect yourself from future incidents.

The key to successful recovery lies in acting quickly, staying organized, and being persistent in your follow-up efforts. Keep detailed records of all your actions and communications, and don’t hesitate to ask for help when you need it.

Remember that experiencing identity theft doesn’t reflect any personal failure on your part. Criminals are constantly developing new methods to steal personal information, and even the most security-conscious individuals can become victims. What matters most is how you respond to the situation and the steps you take to protect yourself moving forward.

Ready to protect your identity from future theft? Explore our comprehensive selection of identity protection services – personally vetted by security experts and designed to help you monitor and safeguard your personal information before problems arise.

Frequently Asked Questions

Do I Need a Lawyer for Identity Theft Recovery?

Most identity theft cases can be resolved without legal representation. The FTC’s identity theft recovery resources and financial institutions’ fraud departments handle the majority of cases effectively. However, you may want to consult a lawyer if:

• The theft involves significant financial losses
• You’re facing criminal charges related to crimes committed in your name
• Financial institutions are not cooperating with your recovery efforts
• The identity theft is related to employment or professional licensing issues

How Long Does Identity Theft Recovery Take?

The recovery timeline varies significantly based on the extent of the theft and how quickly you act. Simple cases involving one or two accounts may be resolved in a few weeks, while complex cases involving multiple accounts, tax fraud, or medical identity theft can take several months or longer.

Will Identity Theft Affect My Credit Score?

Identity theft itself doesn’t directly damage your credit score, but the fraudulent accounts and missed payments that may result from it can. However, once you report the fraud and have the information removed from your credit reports, your score should recover. The fraud alert or credit freeze you place won’t negatively impact your credit score.

Can Identity Theft Happen Again?

Unfortunately, yes. Once your personal information is compromised, it may be sold or shared among criminals. This is why ongoing monitoring and protection are so important. Many identity theft victims experience repeat incidents, making preventive measures and monitoring services valuable investments.

What if I Can’t Afford Identity Monitoring Services?

If professional monitoring services aren’t in your budget, you can create your own monitoring system:

• Set up free account alerts with your bank and credit card companies
• Request free credit reports annually from each bureau
• Monitor your Social Security statement annually
• Stay vigilant about reviewing statements and bills

While this requires more effort on your part, it can provide basic protection at no cost.

Sources

• CSN Annual Data Book 2023
• U.S. Fraud and Identity Theft Losses Topped $12.7 Billion In 2024
• Identity Fraud, Scams Cost Americans Billions in 2024
• U.S. identity theft statistics 2025 | ConsumerAffairs®