What should I do immediately if someone stole my identity?

Take these immediate steps: (1) Place a fraud alert by calling one of the three credit bureaus, (2) Consider placing a credit freeze at all three bureaus, (3) File a report at IdentityTheft.gov to create your official FTC Identity Theft Report, (4) File a police report with your local law enforcement, (5) Contact all compromised financial institutions immediately, and (6) Document everything including dates, times, and conversations. Time is critical - the faster you act, the less damage identity thieves can cause.

How long does it take to recover from identity theft?

Recovery time varies based on the extent of the theft. Simple cases involving one or two fraudulent accounts may resolve in a few months with proper action. Complex cases with multiple accounts, tax fraud, or criminal identity theft can take a year or longer. The key is starting immediately, following proper procedures under federal law, and maintaining consistent follow-through on all disputes and block requests.

Am I responsible for paying fraudulent debts from identity theft?

No, you are not legally responsible for fraudulent debts resulting from identity theft. Federal law protects you from liability for these debts, provided you report the theft and provide proper documentation including your FTC Identity Theft Report. Under FCRA Section 615(f), once fraudulent debt is blocked using Section 605B procedures, creditors cannot pursue collection of those debts. You may need to provide documentation, but you are not liable for debts created by identity thieves.

What's the difference between a fraud alert and a credit freeze?

A fraud alert requires creditors to verify your identity before opening new accounts and lasts for one year (or seven years for extended alerts with an identity theft report). You only need to contact one credit bureau and they notify the other two. A credit freeze is stronger - it completely restricts access to your credit report, making it nearly impossible to open new accounts in your name. Freezes are free, last until you lift them, and must be placed separately with all three credit bureaus. Most identity theft victims benefit from using credit freezes for maximum protection.

Will identity theft ruin my credit score permanently?

No, identity theft does not permanently damage your credit score if handled properly. While fraudulent accounts may initially lower your score, using your rights under FCRA Section 605B to block fraudulent information prevents it from affecting your credit score going forward. Once fraudulent accounts are removed and you maintain good credit habits, your score should recover. Remember, you're not responsible for debts created through identity theft, and federal law provides tools to remove this information from your credit reports.

How do I file an FTC identity theft report?

Visit IdentityTheft.gov or call 1-877-438-4338 to file your report with the Federal Trade Commission. You'll answer questions about the theft, receive a personalized recovery plan, and generate your Identity Theft Report and Affidavit. This official FTC report gives you important legal rights including the ability to place extended fraud alerts, block fraudulent information under FCRA 605B, and protect yourself from debt collector harassment for fraudulent debts. Keep multiple copies of this report as you'll need it throughout the recovery process.

Can identity thieves steal my identity again after I've recovered?

While repeat identity theft is possible, proper preventive measures significantly reduce this risk. Maintain credit freezes at all three bureaus, monitor your accounts regularly, use strong unique passwords with two-factor authentication, shred sensitive documents, and practice good security habits both online and offline. Many identity theft victims never experience repeat theft when they implement comprehensive protection measures. The key is remaining vigilant without living in fear.

What should I do if the police won't take an identity theft report?

If local police won't take a report, try contacting your state police or state attorney general's office. While having a police report is helpful, you can still proceed with recovery using your FTC Identity Theft Report from IdentityTheft.gov, which provides most of the same legal protections under federal law. Document your attempt to file with local police. Many credit bureaus and creditors will accept the FTC report for FCRA 605B blocks and disputes even without a police report.

Should I close all my accounts and start over after identity theft?

No, you should only close compromised accounts. Closing accounts unnecessarily can actually hurt your credit score by reducing your credit history length and increasing your credit utilization ratio. For uncompromised accounts, focus on securing them with new passwords, PINs, and enabling two-factor authentication. Only close accounts that were actually accessed or used by identity thieves, and open new replacement accounts as needed.

What to Do If Someone Stole Your Identity: The Complete Recovery Guide

Q: What is FCRA Section 605B and how does it help identity theft victims?

FCRA Section 605B gives identity theft victims the right to block fraudulent information from appearing on their credit reports. Once you submit an identity theft report and proof of identity to a credit bureau, they must block the fraudulent information within four business days. This blocked information won't appear on your credit report or affect your credit score, and creditors cannot pursue collection of these blocked fraudulent debts. This is a powerful legal tool that many identity theft victims don't know about.

Joeziel Vazquez
Mar 11, 2023
11 min read

Updated: Nov 8

By Joeziel Vazquez

CEO & Board Certified Credit Consultant (BCCC, CCSC, CCRS)

17 Years Experience in Consumer Credit and Identity Theft Resolution

Published: Mar 11, 2023 | Last Updated: Nov 8, 2025

Reading Time: 15 minutes

Green background with Credlocity colors and a animated social security card and animated ID Card

Discovering that someone has stolen your identity is a nightmare scenario that affects over 1.4 million Americans annually, according to the Federal Trade Commission. Whether fraudsters have opened credit cards in your name, filed fake tax returns, or drained your bank accounts, the emotional and financial toll can be devastating.

But here's the critical thing to understand: you are not responsible for fraudulent debts created by identity thieves, and federal law provides powerful tools to help you recover. With the right knowledge and systematic approach, you can reclaim your identity and restore your financial reputation.

As a Board Certified Credit Consultant with 17 years of experience helping identity theft victims navigate recovery, I've guided hundreds of clients through this process. This comprehensive guide will walk you through every step, from immediate actions to long-term protection strategies, including how to leverage your rights under the Fair Credit Reporting Act (FCRA) Section 605B.

Understanding Identity Theft: What You're Dealing With

Identity theft occurs when someone uses your personal information—such as your name, Social Security number, credit card number, or other identifying information—without your permission to commit fraud or other crimes.

Common Types of Identity Theft

Financial Identity Theft: The most common form, where criminals use your information to access existing accounts or open new credit accounts, take out loans, or make purchases.

Tax Identity Theft: Fraudsters file tax returns using your Social Security number to claim refunds before you file your legitimate return.

Medical Identity Theft: Thieves use your information to obtain medical services, prescription drugs, or submit fraudulent insurance claims, potentially affecting your medical records and credit.

Criminal Identity Theft: Someone uses your identity when arrested or charged with a crime, creating a criminal record under your name.

Child Identity Theft: Criminals exploit children's clean credit histories and Social Security numbers to open accounts, often going undetected for years.

Synthetic Identity Theft: Fraudsters combine real information (like your Social Security number) with fake information to create a new identity.

How Identity Theft Happens

Understanding how thieves access your information helps prevent future incidents:

Data breaches at companies holding your personal information
Phishing emails and text messages designed to trick you into revealing information
Mail theft from your mailbox or garbage
Skimming devices on ATMs or payment terminals
Public Wi-Fi networks that aren't secure
Social engineering tactics targeting employees at financial institutions
Lost or stolen wallets, purses, or documents
Malware and spyware on your devices

Immediate Steps: What to Do Right Now

Time is critical when dealing with identity theft. The faster you act, the less damage thieves can cause and the quicker you'll recover.

Step 1: Document Everything

Before taking any other action, start a detailed record:

Create an identity theft log: Document every conversation, including dates, times, names, and outcomes
Save all correspondence: Keep copies of letters, emails, and forms
Take screenshots: Capture fraudulent charges, accounts, or suspicious activity
Organize documents chronologically: This will be invaluable when filing reports and disputing charges

Step 2: Place a Fraud Alert on Your Credit Reports

Your first official action should be placing a fraud alert with the credit bureaus. This is free and can be done immediately.

How it works: Contact one of the three major credit bureaus, and they're required by law to notify the other two.

Contact information:

Equifax: 1-800-525-6285 or equifax.com/personal/credit-report-services
Experian: 1-888-397-3742 or experian.com/fraud
TransUnion: 1-800-680-7289 or transunion.com/fraud

Types of fraud alerts:

Initial Fraud Alert: Lasts one year. Requires creditors to verify your identity before opening new accounts. This is appropriate if you suspect identity theft or want protection while traveling.

Extended Fraud Alert: Lasts seven years. Requires an identity theft report (discussed below). Provides stronger protection and automatically removes you from pre-approved credit offers for five years.

Step 3: Consider a Credit Freeze

A credit freeze (also called a security freeze) is stronger than a fraud alert. It completely restricts access to your credit report, making it nearly impossible for identity thieves to open new accounts in your name.

Advantages:

Free at all three bureaus
More effective than fraud alerts
Lasts until you lift it
Doesn't affect your credit score
Doesn't prevent you from using existing credit

How to freeze your credit:

Contact all three credit bureaus separately:

Equifax: equifax.com/personal/credit-report-services
Experian: experian.com/freeze
TransUnion: transunion.com/credit-freeze

You'll receive a PIN or password to lift the freeze when needed (for example, when applying for credit legitimately).

Important: You must freeze your credit with all three bureaus separately. Freezing with one doesn't automatically freeze the others.

Step 4: Report Identity Theft to the FTC

The Federal Trade Commission is the federal government's primary agency for identity theft complaints. Filing a report with the FTC creates your official identity theft report, which provides legal protections.

How to file:

Visit IdentityTheft.gov or call 1-877-438-4338
Answer questions about the theft
Review your personalized recovery plan
Print your Identity Theft Report and Affidavit

Why this matters: Your FTC Identity Theft Report gives you specific legal rights under federal law, including:

Extended fraud alerts on your credit reports
Blocking fraudulent information from your credit reports (FCRA Section 605B)
Ensuring debt collectors can't harass you for fraudulent debts
Getting copies of transaction records from businesses

Keep multiple copies of this report—you'll need it for various recovery steps.

Step 5: File a Police Report

While not all local law enforcement agencies are equipped to investigate identity theft, having an official police report strengthens your case with creditors and credit bureaus.

What to bring:

Government-issued photo ID
Proof of address (utility bill, lease agreement)
FTC Identity Theft Report
Documentation of fraudulent activity
Your identity theft log

Tips:

Call ahead to find out which department handles identity theft
Ask for a copy of the report or report number
Some jurisdictions allow online reporting
If local police won't take a report, try your state police or state attorney general's office

Step 6: Contact Financial Institutions Immediately

For compromised existing accounts:

Banks and credit unions:

Report unauthorized transactions immediately
Close compromised accounts and open new ones
Change all PINs and passwords
Request new debit/credit cards with different numbers
Set up additional security measures (two-factor authentication)

Credit card companies:

Report fraudulent charges
Close compromised cards
Dispute charges in writing (follow up verbal reports with written confirmation)
Most credit cards offer zero liability for unauthorized charges if reported promptly

Time limits matter: Under federal law, your maximum liability for unauthorized credit card charges is $50 if reported within 60 days. For debit cards, reporting within two business days limits liability to $50, but waiting longer can increase it to $500 or more.

Understanding FCRA Section 605B: Your Powerful Identity Theft Right

The Fair Credit Reporting Act Section 605B provides identity theft victims with a powerful tool that many people don't know about: the right to block fraudulent information from appearing on your credit reports.

What is an FCRA 605B Identity Theft Block?

When you're a victim of identity theft, fraudulent accounts and inquiries may appear on your credit reports, damaging your credit score and creating obstacles when you apply for credit, housing, or employment. Section 605B allows you to have this fraudulent information completely blocked from your credit reports.

How it works:

Once you submit an identity theft report and proof of your identity to a credit bureau, they must block fraudulent information within four business days. This information won't appear on your credit report or be calculated into your credit score.

What Can Be Blocked Under 605B?

Fraudulent credit card accounts
Unauthorized loans (personal, auto, mortgage)
Collection accounts for debts you didn't incur
Hard inquiries from identity theft
Public records resulting from identity theft
Any information resulting from identity theft

The 605B Block Request Process

Step 1: Gather Required Documentation

FTC Identity Theft Report
Proof of identity (government-issued ID)
Proof of claim (showing which accounts are fraudulent)
Police report (if available, though not always required)

Step 2: Submit Block Request to Each Credit Bureau

You must send your request separately to all three bureaus:

Equifax: Equifax Information Services LLC P.O. Box 740256 Atlanta, GA 30374

Experian: P.O. Box 9701 Allen, TX 75013

TransUnion: TransUnion LLC P.O. Box 2000 Chester, PA 19016

Step 3: Credit Bureau Review

The credit bureau has four business days to block the information after receiving your complete request. They must also notify the furnisher (creditor) that the information has been blocked.

Step 4: Monitor Your Credit Reports

After submitting your block request, regularly check that the fraudulent information has been removed and doesn't reappear.

Important 605B Rights and Protections

Creditors can't pursue you: Once fraudulent debt is blocked, the creditor cannot sell the debt, report it, or take legal action to collect it without first notifying you and providing evidence that you authorized the account.

Blocks can be challenged: Credit bureaus can refuse or rescind a block if they have reason to believe it's not fraudulent, but they must notify you first and provide reasoning.

Permanent protection: Unlike disputes, which may result in information reappearing, blocks are designed to be permanent for legitimate identity theft cases.

Common 605B Challenges and Solutions

Challenge: "The credit bureau denied my block request." Solution: Ensure you submitted all required documentation. The most common reason for denial is incomplete documentation. Resubmit with all required items clearly organized.

Challenge: "The fraudulent account reappeared after being blocked." Solution: This is illegal. Contact the credit bureau immediately in writing, citing FCRA 605B. File a complaint with the Consumer Financial Protection Bureau if the issue persists.

Challenge: "The creditor says I'm still responsible for the debt." Solution: Provide them with a copy of your Identity Theft Report and block confirmation. Under federal law, they cannot pursue collection once a valid block is in place.

For detailed guidance on the 605B process, including sample letters and step-by-step instructions, visit our FCRA 605B Block Request resource page.

Disputing Fraudulent Accounts and Charges

Beyond blocking information under 605B, you have rights to dispute fraudulent accounts directly with creditors and credit bureaus.

Disputing with Credit Bureaus

Under FCRA Section 611, you can dispute inaccurate information on your credit reports. For identity theft, this is often done in conjunction with—or instead of—a 605B block.

How to file a dispute:

Write a detailed dispute letter identifying each fraudulent item
Include supporting documentation: Identity Theft Report, police report, proof of identity
Send via certified mail with return receipt requested
Credit bureau has 30 days to investigate (can be extended to 45 days in some cases)

Online dispute options: Most bureaus offer online disputes, but written disputes with documentation are generally more effective for identity theft cases.

Disputing Directly with Creditors

You should also contact companies where fraudulent accounts were opened:

Call their fraud department immediately
Follow up in writing within 60 days
Include your Identity Theft Report and police report
Request account closure and confirmation in writing
Ask for a letter stating you're not responsible for charges

Under the Fair Credit Billing Act (FCBA), you have 60 days from receiving a statement to dispute fraudulent credit card charges in writing.

Protecting Yourself After Identity Theft

Recovery doesn't end with resolving current fraud. You must protect yourself from future incidents.

Monitor Your Credit Reports Regularly

Free credit reports: You're entitled to one free credit report from each bureau every 12 months at AnnualCreditReport.com (the only authorized free source).

Strategy: Request one report every four months from a different bureau, giving you year-round monitoring.

Credit monitoring services: Many banks, credit card companies, and specialized services offer free credit monitoring that alerts you to changes.

Set Up Account Alerts

Most financial institutions offer free alerts for:

Large transactions
International purchases
Online transactions
Balance thresholds
Password changes

Enable these on all accounts to detect suspicious activity quickly.

Secure Your Mail and Documents

Use a locked mailbox or USPS Informed Delivery
Shred documents containing personal information
Opt out of pre-approved credit offers (optoutprescreen.com or 1-888-5-OPT-OUT)
Don't carry your Social Security card or unnecessary documents

Strengthen Your Online Security

Use unique, strong passwords for each account
Enable two-factor authentication everywhere possible
Be cautious with public Wi-Fi (use a VPN)
Keep software and antivirus updated
Verify emails and websites before entering personal information
Never click suspicious links in emails or texts

Consider Identity Theft Protection Services

Various services offer comprehensive monitoring and recovery assistance:

Credit monitoring at all three bureaus
Dark web monitoring for your information
Social Security number monitoring
Identity restoration services
Insurance coverage for recovery costs

Research carefully—many services offer similar features at different price points.

Special Situations in Identity Theft

Tax Identity Theft

If someone files a fraudulent tax return using your Social Security number:

File IRS Form 14039 (Identity Theft Affidavit)
Contact the IRS Identity Protection Specialized Unit at 1-800-908-4490
File your legitimate return on paper with your Identity Theft Affidavit attached
Get an Identity Protection PIN from the IRS for future filings
Expect delays in processing your return (several months is common)

Medical Identity Theft

If someone uses your health insurance or identity for medical services:

Contact your health insurance company immediately
Request a copy of your medical records to check for fraudulent entries
Request correction of inaccurate information in writing
File a complaint with the Health and Human Services Office for Civil Rights if records aren't corrected
Check Explanation of Benefits (EOB) statements carefully

Child Identity Theft

Children's identities are valuable targets because theft often goes undetected for years:

Check if your child has a credit report by contacting each bureau
If a report exists (it shouldn't), immediately file fraud reports
Place a credit freeze on your child's credit
File reports with FTC and local police
Consider obtaining a Child Identity Protection PIN from the IRS

Criminal Identity Theft

If someone commits crimes using your identity:

Contact the arresting agency with your FTC report and police report
Request a Criminal Identity Theft Passport (available in some states)
Contact the court where charges were filed
Request correction of criminal records
Carry documentation proving your identity was stolen
Consider consulting an attorney for serious cases

Your Legal Rights Under Federal Law

Understanding your rights helps you navigate recovery effectively:

Fair Credit Reporting Act (FCRA)

Right to free credit reports after identity theft
Right to block fraudulent information (Section 605B)
Right to dispute inaccurate information
Right to extended fraud alerts (7 years)
Protection from reporting blocked information

Fair Debt Collection Practices Act (FDCPA)

Collectors can't harass you for fraudulent debts
Right to demand validation of debts
Right to cease communication for fraudulent accounts
Protection from lawsuits for debts resulting from identity theft

Fair Credit Billing Act (FCBA)

Limited liability for unauthorized credit card charges
Right to dispute charges within 60 days
Creditors must investigate disputes
Protection during disputes (can't report as delinquent while investigating)

Credit Repair Organizations Act (CROA)

If you work with credit repair companies during recovery:

No upfront fees before services are performed
Right to cancel within three days
Written contracts explaining services and fees
No false promises about removing accurate information

Learn more about your rights under federal consumer protection laws on our Credit Repair Guide Laws page.

When to Seek Professional Help

While you can handle identity theft recovery yourself, professional assistance can be valuable in complex cases:

Signs You May Need Professional Help

Multiple fraudulent accounts across different types of credit
Criminal identity theft requiring legal intervention
Difficulty getting credit bureaus or creditors to respond
Fraudulent debts sent to collections or resulting in lawsuits
Business or corporate identity theft
Identity theft combined with other credit issues

What Professional Credit Consultants Can Do

Educational Note: Legitimate credit repair and identity theft assistance services work within the framework of federal consumer protection laws to help you navigate complex recovery processes.

Services may include:

Comprehensive credit report analysis to identify all fraudulent accounts
Assistance with FCRA 605B block requests and documentation
Dispute letter preparation and submission
Communication with credit bureaus and creditors on your behalf
Ongoing monitoring throughout the recovery process
Education about your rights under federal law

When evaluating services, look for:

Board Certified Credit Consultants (BCCC) or similar credentials
Transparent fee structures (remember: upfront fees before services are illegal under CROA)
Clear explanation of services and realistic timelines
Written contracts explaining your rights
Educational approach focused on empowering consumers
Money-back guarantees demonstrating confidence in services

For example, programs offering features like monthly one-on-one consultations, budgeting assistance, app-based tracking of your case progress, and free trial periods can provide valuable support while you learn to manage your credit recovery. These educational services should complement—not replace—your own involvement in the process.

Important: No legitimate service can guarantee specific results or promise to remove accurate information from your credit report. Be wary of companies making such claims, as they may be violating federal law.