Identity Theft: What to Do the Moment You Discover It

The first hour after you discover identity theft matters more than any other — fraudsters move fast, and so should you. This is the order of operations to limit the damage, whether it's a single fraudulent charge or a full-blown case of someone opening accounts in your name.

Step 1: Report It at IdentityTheft.gov

The FTC's IdentityTheft.gov walks you through a personalized recovery plan and generates an official FTC Identity Theft Report — a document many banks, creditors, and credit bureaus require before they'll remove fraudulent accounts or charges from your record. Do this before calling anyone else; it's free and takes about 20 minutes.

Step 2: Place a Fraud Alert or Freeze Your Credit

A fraud alert (free, lasts one year, renewable) requires lenders to verify your identity before opening new credit in your name — placing it with one bureau notifies the other two automatically. A credit freeze is stronger: it blocks new accounts entirely until you lift it, but you must contact all three bureaus (Equifax, Experian, TransUnion) separately.

Step 3: Contact the Companies Directly

• Call the fraud department of any bank, card issuer, or lender where fraudulent activity appears — ask for the account to be closed or the charge reversed
• Request they flag the account as identity theft, not just "disputed charge" — this changes how it's reported and investigated
• Follow up every phone call with a written letter or the FTC's pre-filled dispute letter templates
• Change passwords immediately for the affected account and any account reusing that password

Step 4: File a Police Report if Needed

Not always required, but useful (and sometimes mandatory for larger claims) when a creditor insists on one, when the thief used your identity for something beyond financial accounts, or when you need it to support an extended fraud alert. Bring your FTC Identity Theft Report — it speeds up the process significantly.

Step 5: Monitor and Follow Up

• Pull your credit reports free at annualcreditreport.com and check for accounts you don't recognize
• Dispute any remaining fraudulent items directly with each credit bureau in writing
• Keep a folder (physical or digital) with every report, reference number, and letter — recovery can take weeks and you'll need to reference this repeatedly
• Set a calendar reminder to renew your fraud alert or check your freeze status