You noticed accounts on your credit report that you never opened. Or charges appeared on your bank statement that you did not make. Or a debt collector is calling you about a debt you know nothing about. These are the hallmarks of identity theft — and the situation is serious enough to warrant immediate, organized action.
Step One: Contain the Damage Immediately
Contact your bank and any affected financial institutions right away. Freeze or close compromised accounts and request replacement cards or account numbers. Ask each institution to flag your account for suspicious activity. Do this before anything else — stopping ongoing unauthorized access is the first priority.
Step Two: Place a Fraud Alert or Credit Freeze
Contact any one of the three major credit bureaus to place a fraud alert on your file. The bureau you contact is required to notify the other two. A credit freeze is stronger — it prevents new creditors from accessing your report at all. Freezes are free and can be placed and lifted as needed.
Step Three: Document Everything
Keep a detailed log of every suspicious transaction, every account you did not open, every call you receive from collectors about debts you do not owe, and every communication with financial institutions or credit bureaus. This documentation is the foundation of any legal claim you may later pursue.
Step Four: Report the Theft
File an identity theft report with the Federal Trade Commission at IdentityTheft.gov. The FTC will generate a personal recovery plan and provide documentation you can use with creditors, bureaus, and law enforcement. Consider also filing a report with your local police department.
Step Five: Dispute Fraudulent Accounts in Writing
Send written disputes to each credit bureau that is reporting fraudulent accounts or inquiries. Include your FTC identity theft report and any other documentation. You are also entitled to request that the bureau block fraudulent information from your report — not just mark it as disputed.
Written disputes with documentation create the legal record that makes an FCRA claim viable. A phone call to a credit bureau does not.
When the Bureaus and Creditors Do Not Fix It
Credit bureaus and data furnishers that fail to properly investigate and resolve identity theft disputes may be liable for the harm they cause. Debt collectors who continue to pursue debts arising from identity theft after being notified of the fraud may also be violating federal law. In both cases, you may be entitled to compensation — and the defendant is required to pay your attorney fees.
