3 essential steps to recover from identity theft

Maybe your first clue came when you received a credit card bill for a designer handbag or watch that you definitely did not buy. Or you got an email from a luxury resort thanking you for visiting and wishing you well, and you haven’t taken a day off all year. That sinking realization that someone has been treating themselves to the good life — on your dime — signals that you’ve become a victim of identity theft.

Having your identity stolen can be financially devastating, but it can also have a big negative effect on your mental and emotional health. After the initial shock wears off, victims of identity theft may be overwhelmed with feelings of shame and self-blame.¹ If you’ve been a victim of identity theft, you’re not alone. In 2024, it’s estimated that some 18 million Americans lost a total of $27 billion to criminals who illegally accessed their personal information (such as Social Security number, credit cards, bank accounts, and passwords) for illicit economic gain.² But we’ve got you covered. Keep reading to learn exactly what you need to do to protect yourself and your finances.

Are you vulnerable?

Among those at highest risk of having their identity stolen are — wait for it — heavy users of social media.³ Oversharing of personal details on social platforms is like leaving your front door unlocked — an invitation to virtual fraudsters. High-income individuals can also be tempting targets, since most have multiple credit cards and often have a larger digital footprint.⁴

How can you tell if your identity has been stolen?

According to the Federal Trade Commission, common warning signs include⁵:  

• Unexplained withdrawals from your bank account and/or charges on your credit card.  

• You stop receiving bills or other mail.

• Your checks are refused by merchants.  

• Debt collectors call about debts that aren’t yours.  

• You get medical bills for services you didn’t use.  

• Multiple tax returns are filed in your name. 

If your identity is stolen, what should you do?

Stop the bleeding

Immediately call the fraud department at the companies where the fraud occurred and explain that your identity has been stolen. Ask them to have your account closed or frozen.⁶ Then, change all your logins, passwords, and personal identification numbers (PINs). Next, check your credit report. Contact one of the credit reporting agencies — Experian, Equifax, or TransUnion — and place a fraud alert on your information. It’s free for a year and when you contact one of the three bureaus, they must inform the other two about the alert.

Blow the whistle

Go to Identitytheft.gov and create an identity theft report. This report will provide the foundation for investigators and help guide you through the recovery process. If the identity fraud included misuse of your Social Security number or income tax filing, alert the SSA and IRS.

Heal the wound

It can take six months or more to resolve the damage to your financial life. Work with financial institutions, agencies, and other companies to re-establish your accounts and good name. Recognize the emotional suffering that accompanies identity theft. Talking to family, friends, or a counselor can help relieve the stress and anxiety.

Fortify your defenses

Help prevent a future breach by taking your security game to the next level:  

• Check your statements every month for suspicious activity.  

• Don’t create easily guessed passwords (like “password”) or use the same user ID and password for multiple sites. Change passwords frequently. Consider using a password manager program that creates strong passwords.   

• Enable two-factor authentication on all your accounts that offer it.  

• Subscribe to a credit monitoring agency or identity protection service to alert you to fraudulent activity. Some fraudsters wait months or years to start using stolen information.  

• Be alert for phishing. Never share financial information in emails, online, or by phone with strangers, or with someone claiming to work for your bank or the IRS.  

• Have financial documents transmitted digitally, rather than by snail mail.  

• Shred pre-approved credit cards you receive in the mail.  

• Keep your Social Security card and checks at home in a secure place. Limit the number of credit and debit cards you carry with you.  

• Don’t include your full birthdate on social media.  

• Avoid using public Wi-Fi whenever possible — it’s like attending a convention of identity thieves.  

Financial and emotional wellness are intertwined, and having your identity compromised can affect both. Taking steps to protect your identity and learning what to do if fraudsters target you or your family can help you feel empowered and financially confident.