Identity Theft Recovery
Guide last updated: April 17, 2026. Hazard class: financial. Civic education by a Concerned Parent.
The short version
If your identity has been stolen — someone opened a credit account, filed a tax return, used your name with police, or used your Social Security number — start with IdentityTheft.gov, the free FTC recovery tool. It generates a personalized recovery plan with pre-filled letters and a Federal Trade Commission Identity Theft Report that creditors are required to recognize. Most identity-theft recovery steps are free.
Immediate steps
1. Place a fraud alert and freeze credit
Contact one of the three major bureaus to place a fraud alert (it propagates to the other two automatically). Also place a full security freeze at each bureau.
2. File at IdentityTheft.gov
This generates your FTC Identity Theft Report — the single most important document in identity-theft recovery. It is your proof to creditors, credit bureaus, and law enforcement that you are a victim.
3. Review your credit reports
Get free reports from all three bureaus at annualcreditreport.com. Flag everything you don't recognize.
4. File a police report
Bring your FTC Identity Theft Report to your local police department. Some jurisdictions require you to file in person. Keep the police report number — some banks and creditors require it in addition to the FTC report.
5. Notify affected creditors
For each fraudulent account: contact the creditor's fraud department, send a dispute letter with a copy of your FTC Identity Theft Report, request account closure, and request a letter confirming the account is being handled as fraud.
Specific fraud types
Credit account or loan fraud
Each creditor has a specific fraud process. The Fair Credit Billing Act and FCRA give you specific rights — disputes must be investigated within 30 days; fraudulent charges must be removed; the creditor must provide documentation they relied on to open the account. If a creditor resists, escalate to the CFPB.
Tax return fraud
If your tax refund was already claimed by someone filing a fraudulent return in your name: file Form 14039 (Identity Theft Affidavit) with the IRS. Request an Identity Protection PIN (IP PIN) to secure future returns. IRS fraud resolution usually takes 6–9 months.
Criminal identity theft
If someone used your name when arrested or cited for a crime: visit the arresting agency, bring your FTC Identity Theft Report and fingerprint/photograph for comparison. Request an Identity Theft Passport (available in some states) or a clearance letter.
Medical identity theft
Request your medical records from each affected provider. Dispute fraudulent information with each provider's medical records department. HIPAA gives you the right to request correction. Inform your insurance carrier.
Employment identity theft
If a fraudulent employer has used your SSN for wages: get your Social Security earnings record from SSA, flag fraudulent entries, and file with SSA. This often surfaces when unexpected income appears on IRS or SSA records.
Child identity theft
A child's credit report should not exist. If one does, freeze it, dispute it, and file at IdentityTheft.gov. Consider a freeze on all your children's reports as preventive.
Your legal rights
Multiple statutes protect identity-theft victims:
- Fair Credit Reporting Act — right to block fraudulent information on credit reports within 4 business days of a valid identity-theft report
- Fair Credit Billing Act — $50 cap on consumer liability for unauthorized credit card charges (most issuers waive even this)
- Electronic Fund Transfer Act — consumer liability caps for unauthorized bank/debit transfers, but timely reporting is essential
- Illinois Consumer Fraud Act — claims against businesses that failed to protect your data
- Identity Theft and Assumption Deterrence Act — federal criminal statute for identity theft
Prevention going forward
- Keep credit frozen when not applying for credit
- Enable multi-factor authentication on financial accounts
- Use a password manager with unique passwords
- Get an IRS Identity Protection PIN
- Opt out of prescreened credit offers at optoutprescreen.com
- Shred financial mail
- Check credit reports quarterly (free at annualcreditreport.com)
- Monitor bank and credit card statements
Help for victims
- IdentityTheft.gov — free FTC recovery tool
- Identity Theft Resource Center — free victim assistance, 1-888-400-5530
- Consumer Financial Protection Bureau — complaints against creditors that refuse to correct fraud
- Illinois Attorney General — Identity Theft Unit — 1-866-999-5630
- Legal Aid Chicago — for serious or unresolved cases, 312-341-1070