The first day
Speed limits the damage, and the law rewards it.
- Call the fraud department of every company where an account was opened or misused, ask that the account be closed or frozen, and change the passwords.
- Place a credit freeze with each of the three national credit bureaus, which is free by federal law and must be done at each bureau separately.
- Add a fraud alert at any one bureau, which is required to notify the other two and which lasts one year.
- Pull your reports from all three bureaus at annualcreditreport.com and mark every account and inquiry you do not recognize.
- File a report with the Federal Trade Commission at IdentityTheft.gov, which generates an official Identity Theft Report and a recovery plan with pre-filled letters.
A police report is optional in most cases, although some creditors ask for one.
Clearing the false accounts
Send a copy to each credit bureau with a letter identifying the fraudulent items, and the bureau must block them from your file within four business days of accepting it. Write to each business as well, asking it to close the account, to stop reporting it, and to confirm in writing that you are not liable. Use certified mail, and log every call with the date, the name and what was promised.
What you can lose
Federal law caps your liability for unauthorized credit card charges at $50, and most issuers waive even that. Debit cards are weaker. You are liable for up to $50 if you report within two business days, up to $500 after that, and potentially everything taken if you wait more than 60 days after the statement is sent.
Special cases
If someone files a tax return in your name, the IRS will reject yours as a duplicate. You respond by mailing the identity theft affidavit, Form 14039, with a paper return, and afterward you use an identity protection PIN each year. If your Social Security number was used for work, the earnings will show on your Social Security statement and should be reported to that agency.
Afterward
Leave the freeze in place permanently, and lift it for a few days whenever you apply for credit. Victims with an Identity Theft Report may also request an extended fraud alert lasting seven years.
Tip A freeze does nothing for accounts you already have. Turn on transaction alerts for every card and bank account, so a stranger's purchase reaches your phone within seconds.
