Respond to Identity Theft
A loan you never applied for, a tax notice about income you never earned — someone is using your identity. It feels violating and overwhelming, but there is a proven order of operations. Work it calmly, document everything, and you will get through it.
TL;DR / Quick Fix
Quick fix: freeze your credit with all three bureaus, file a report at IdentityTheft.gov, and dispute the fraudulent accounts in writing. Keep a log of every call with dates and names. Act fast — but work the list in order, not in panic.
Follow these steps
- Freeze your credit immediately. Contact all three major bureaus and freeze. A freeze stops new accounts cold — it is free, fast, and the single most effective move.
- File an official report. Report at IdentityTheft.gov (US) — it generates a recovery plan and an official report lenders recognize. File a police report too if a creditor requires it.
- Dispute fraudulent accounts. Contact each creditor's fraud department in writing. Dispute the account, request closure, and get written confirmation — phone calls alone are not enough.
- Check the tax angle. Identity thieves file fake tax returns for refunds. If you get IRS notices about unknown income, see the tax-related identity theft guide — it needs its own response.
- Change compromised credentials. New passwords everywhere the thief may have reached, plus two-factor on email and financial accounts. Assume they have what the breach gave them.
- Document everything. A dedicated notebook or file: dates, names, reference numbers, copies of letters. Disputes take months; your log is your memory and your leverage.
What NOT to do
- Do not just call — write. Written disputes create a paper trail; phone promises evaporate.
- Do not pay a fraudulent debt to make it go away. Paying can be twisted into acknowledging the debt as yours.
- Do not skip the credit freeze because it feels drastic. It is free, reversible in minutes, and stops the bleeding.
- Do not ignore small oddities. A strange inquiry or tiny unknown charge is often the first sign — investigate early.
Frequently asked questions
How long does recovery take?
Months, typically — disputes and paperwork move slowly. The credit freeze protects you immediately while the rest processes.
Will this ruin my credit score?
Fraudulent accounts can hurt it temporarily, but successful disputes remove them. The long-term damage of inaction is far worse.
Should I hire an identity-theft service?
The official recovery process is free and effective. Paid services mostly do paperwork you can do yourself.