I Think I'm an Identity Theft Victim — Now What?

A Step-by-Step Recovery Checklist for Consumers

Discovering an unfamiliar charge, an account you never opened, or a collection notice for a debt you do not recognize can be deeply unsettling. Fortunately, federal and state consumer protection agencies have established a clear, practical process for stopping further harm and beginning the work of repairing the damage. The checklist below draws from guidance issued by the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and state Attorneys General — the same general roadmap we use to help consumers regain control after identity theft.

Work through these steps in order whenever possible. As you go, keep a dedicated file — digital, physical, or both — for every letter, confirmation number, report, screenshot, and note from a call. That record may become important if a creditor, debt collector, or credit bureau later refuses to correct the problem.

Step 1: Secure the Accounts Most at Risk from ID Theft

☐    Immediately change the passwords for any account you know — or even reasonably suspect — may have been compromised.

☐    Contact the fraud department for each company where unauthorized activity occurred, and explain that your identity was stolen.

☐    Ask each company to close or freeze the fraudulent account and to confirm, in writing, that you are not responsible for the debt or charges.

Step 2: Create Your Official Identity Theft Report

Step-by-step guide when you find your identity has been compromised.

This is one of the most important steps — and it is free. Filing a report at IdentityTheft.gov creates an official FTC Identity Theft Report and a personalized recovery plan. It also supports the next steps, including fraud alerts, credit freezes, disputes, and efforts to protect your credit history and financial accounts.

☐    Go to IdentityTheft.gov, or call 1-877-438-4338, and answer the guided questions about what happened.

☐    Be as specific as you can with dates. An approximate month is acceptable if you do not know the exact day, but vague information can make recovery letters less effective. Another reason getting started on these action steps sooner is better. Include every affected account, even if the amount seems small.

☐    Review the draft report before submitting it, then save your FTC Identity Theft Report number. You will likely need it more than once.

☐    Download and print your personalized recovery plan. Your FTC report is important proof of the identity theft and can help you request an extended seven-year fraud alert, block fraudulent information from your credit report under the FCRA, and respond to debt collectors pursuing debts that are not yours.

Step 3: Add Protective Alerts and Freezes

☐    Contact one of the three nationwide credit bureaus — Equifax, Experian, or TransUnion. The bureau you contact must notify the other two.

☐    An initial fraud alert lasts one year and requires creditors to take reasonable steps to verify your identity before opening new credit in your name.

☐    An extended fraud alert is available once you have an Identity Theft Report. It lasts seven years and entitles you to two free credit reports from each bureau during a 12-month period.

☐    For stronger protection, consider placing a credit freeze with all three bureaus. A freeze generally prevents new creditors from accessing your report until you lift it.

Step 4: Review Your Credit Reports Carefully

☐    Obtain your free credit reports from all three bureaus at annualcreditreport.com, or through the fraud alert confirmation letters you receive.

☐    Review each report line by line for accounts, inquiries, addresses, or personal information you do not recognize.

☐    Make a list of every discrepancy. You will use that list when preparing your disputes.

Step 5: Make a Local Police Report

☐    File a report with your local police department, and bring your FTC Identity Theft Report and any supporting documents with you.

☐    A local police report can be especially useful — and sometimes required — for larger losses, disputes with certain creditors, or situations where you have information identifying a possible suspect.

Step 6: Dispute Inaccurate Reporting in Writing

☐    Send a written dispute to each credit bureau reporting inaccurate information. Explain what is wrong, why it is wrong, and include copies of supporting documents — never originals.

☐    Send disputes by certified mail, return receipt requested, and keep complete copies of everything you send.

☐    Once a credit bureau receives your dispute, it generally has 30 days to investigate and must forward your supporting information to the company that reported the item.

☐    Separately dispute the account directly with the furnisher — the bank, lender, creditor, or collector that supplied the inaccurate information.

☐    If a bureau or furnisher refuses to correct clear identity-theft-related errors, that is where contacting a consumer advocate is key. Wells Law Chicago often provides legal representation to consumers in these situations with no upfront costs.

☐    You may also submit a complaint to the CFPB at consumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).

Step 7: Use State Consumer Protection Resources

Residents of many states also have a dedicated state-level resource. The state’s Attorney General’s website often lists resources that can help consumers address issues such as difficulty obtaining a police report, communicating with creditors, and navigating identity theft recovery.

Step 8: Protect Compromised Government Identification

☐    If your Social Security card was lost or compromised, apply for a free replacement at ssa.gov/ssnumber.

☐    If your driver’s license was compromised, contact the the Secretary of State  in your state and ask whether your license number can be flagged or otherwise protected.

☐    If your passport was lost or stolen, contact the U.S. State Department at 1-877-487-2778.

Step 9: Address Tax, Debt, and Child Identity Theft Issues

☐    For tax-related identity theft, such as a fraudulent return filed in your name, file IRS Form 14039 through IdentityTheft.gov and contact the Illinois Department of Revenue at REV.IdentityTheftAffidavit@Illinois.gov.

☐    If debt collectors pursue a fraudulent debt, send the collector your FTC Identity Theft Report and a written statement disputing the debt.

☐    If a minor’s identity was stolen, contact the company directly, explain that the child cannot legally enter contracts, and request written confirmation that the account is closed and not attributable to the child.

Step 10: Keep Watch and Confirm the Corrections

☐    Keep a running log of every call, letter, and reference number, including the date, time, and name of the representative.

☐    Recheck your credit reports periodically over the next year to confirm that fraudulent information has not reappeared.

☐    Monitor your recovery plan on IdentityTheft.gov. It can be updated as you complete tasks or discover new fraudulent activity.

When Legal Help May Be Needed for ID Theft

Many identity theft issues can be resolved through the steps above. But when a creditor refuses to remove a fraudulent account after a proper dispute, a debt collector continues pursuing a debt that is not yours, a credit bureau ignores its investigation obligations, or the fraud has already affected your ability to obtain credit, housing, employment, or financial peace of mind, it may be time to speak with an attorney. In those circumstances, the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), or related consumer protection laws may provide a remedy — including compensation for the harm caused and, in appropriate cases, payment of attorney’s fees.

Wells Law Chicago represents consumers nationwide in credit reporting and identity theft-related disputes.