How to Recover After Your Identity Has Been Stolen

Identity fraud can upend your life. Here’s how to clean up the mess

Ken Budd,

AARP

Reviewed by

Amy Nofziger, AARP’s director of fraud victim support, AARP Fraud Watch Network

En español

Published May 02, 2025

a torn fingerprint being stitched back together with a needle and thread

Rob Dobi

Jessica Roy’s years-long identity fraud nightmare began with a stolen wallet. The theft occurred in a San Francisco bar in 2018, and Roy — then a reporter with the Los Angeles Times, now a financial columnist with the San Francisco Chronicle — took quick action. She disputed charges the next morning (the thieves had used her debit card), cancelled her debit and credit cards, and reported her stolen wallet to local police. Soon after, she obtained a new driver’s license and updated autopay for her bills.

She thought the matter was closed. Then Bank of America and Wells Fargo mailed her approval notices for accounts she hadn’t opened. The thieves had applied for accounts with Macy’s, PayPal, and Walmart, she learned from a site where she tracked her credit score. She received email notifications that her passwords had been changed.

Roy froze her credit with the three major credit bureaus and filed a federal ID theft complaint. But the problem worsened. Although Roy had reported her driver’s license stolen, Bank of America and Wells Fargo issued checkbooks for accounts the criminals had opened. Soon she received letters about bad checks, including nearly $14,000 at Big Lots. The thieves used her driver’s license to rent a Tesla that was eventually reported stolen.

The last incident occurred in 2021, roughly three years after the wallet theft. But Roy knows she could be victimized again. “Eva Velasquez [CEO of the nonprofit Identity Theft Resource Center (ITRC)] told me that getting your identity stolen is like having a chronic illness,” Roy says. “You can have it under control for a long time, but a flare-up could always happen.”

If identity fraud is like a chronic illness, the crimes are reaching an epidemic stage. Identity fraud cost Americans an estimated $47 billion in 2024, with roughly 15 million victims, according to “Resolving the Shattered Identity Crisis,” an AARP-sponsored report from Javelin Strategy & Research. The Federal Trade Commission (FTC) received 1.13 million identity theft reports in 2024, up from 650,000 in 2019.

“My advice to someone going through identity theft is that it is possible to fight it and win,” says Roy, who also recounted her experience in the Los Angeles Times. “It just takes way, way, way more effort than it should, and no one is invested in helping you or doing anything to prevent this from happening to anyone else.” (Check out AARP’s tips for identity theft prevention.)

10 key steps to take if your identity has been stolen and used for fraud

1. Document everything.

Write down essential information about the fraud. If someone opened a new account in your name, for example, note when you discovered it, when it was opened, the type of account, the company, and what info the crooks may have about you. “Having well-documented notes before you begin the journey is really important,” Velasquez says. “You’re going to need to tell your story to a number of people.” Record each detail as you move forward, including numbers you called, whom you spoke with, information you received, and the incident or case numbers.

2. Assume the worst.

“If you experience one type of identity theft, such as credit card fraud, you should assume that all of your accounts and information are potentially at risk,” notes Michael Bruemmer, vice president of Experian’s data breach resolution group and consumer protection. He says criminals can use your info for numerous nefarious purposes, like accessing your personal accounts, creating new ones, applying for benefits or filing tax returns.

3. Review credit card and bank statements.

Look for suspicious activity, such as unauthorized transactions. Also check your tax returns and medical bills, and change your login information.

4. Report the crime.

File a report with the FTC at IdentityTheft.gov. The site allows you to submit an affidavit and enter information about your situation to create a personalized recovery plan and access form letters for contacting companies. Next, file a police report (many police departments require the FTC affidavit before taking your report). As Roy discovered, some police departments are reluctant to take identity theft reports, but be persistent.

“The police report is what allows the consumer protections that you’re entitled to to kick in,” says Velasquez. When you go to the police, bring your FTC identity theft report, a government-issued photo ID, proof of your address, and proof of the theft. Also file a report with the FBI’s Internet Crime Complaint Center at IC3.gov.

5. Call your financial institutions.

Contact the security or fraud departments of any businesses where thieves opened an account or made charges. Alert them to the problem, dispute charges you didn’t make, and ask them to freeze your accounts. Request a letter from them confirming that you didn’t make certain charges or open an account, that you aren’t liable for the charges, and that the information was removed from your credit report, as the FTC recommends. That letter will be helpful if problems resurface.

Follow the same procedures for other types of identity fraud. If you’re a victim of tax fraud, for example, contact the Internal Revenue Service (IRS). If someone uses your identity to steal unemployment benefits, contact your state employment agency.

6. Freeze your credit and place a fraud alert.

Contact all three credit reporting bureaus — Experian, Equifax, and TransUnion — to check your credit report for incorrect information or accounts. Then place a credit freeze on your credit file. A credit freeze stops criminals from opening accounts in your name (it typically prevents companies from accessing your credit report, meaning they can’t conduct a credit check or process a credit application). You can maintain the credit freeze even after you’ve recovered from ID theft. Roy keeps her credit frozen, and her last ID theft incident came during a 24-hour period when she unlocked it to apply for a mortgage. InIncredibly, thieves tried to open a checking account during that one-day window.

“I bang the drum about freezing your credit on a regular basis,” Roy says.

If you don’t want to freeze your credit for some reason, ask the credit bureaus to place a fraud alert on your file. “When you have an alert on your report, a business must verify your identity before it issues new credit in your name,” the FTC notes. Regularly monitor your credit report to spot fraudulent activity. You can check reports weekly for free at AnnualCreditReport.com, as recommended by the FTC.

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7. Avoid revictimization.

Some victims are often targeted in fraud recovery scams. Scammers pose as legitimate entities — banks, lawyers, consumer groups, government agencies — claiming they can help victims regain their stolen money (for a fee, of course) and speed up reimbursement. Warning signs include requests for your Social Security number or financial account information. The scammer might be the same criminal who stole your identity.

Be careful when Googling customer service numbers too. Scammers are increasingly posing as customer service agents, and some have rigged search engine algorithms so their fake services appear high in the search results. Scrutinize URLs before you click.

8. Don’t expect fast results.

Sometimes recovery is speedy, but as Roy’s case shows, it can also take years. The length of recovery time can vary based on the type of identity theft. Credit card fraud can often be resolved in a few days or weeks; scams such as medical identity theft and new account fraud may take several months or even years, according to Aura, a company that offers an identity theft protection app. The National Taxpayer Advocate reported to Congress in January 2025 that the IRS takes a staggering 22 months, on average, to resolve tax-related identity theft cases.

9. Protect your mental health.

According to the ITRC’s October 2024 “Consumer & Business Impact Report,” 12 percent of identity theft victims said they had contemplated suicide. “Victims of identity theft will feel overwhelmed at times by the psychological pain of loss, helplessness, anger, isolation, betrayal, rage, and even embarrassment,” the Georgia Attorney General’s Consumer Protection Division warns.

As you recover from identity theft, focus not just on your financial well-being but also on your emotional well-being. Don’t neglect healthy habits (such as exercise), and consider seeing a mental health professional if you feel anxious or depressed. AARP has free, confidential online Fraud Victim Support Groups led by trained facilitators.

10. Find good advice and assistance.

The ITRC’s online Victim Help Center provides answers to common questions and recommended actions. You can chat, call, or text with an ITRC expert to develop a free, customized remediation plan. The FTC has a list of recommended steps on its IdentityTheft.gov site, and you can contact specialists at AARP’s Fraud Watch Network.

Ken Budd has written for National Geographic Traveler, Travel+Leisure, The Washington Post Magazine and many more. He is the author of a memoir, The Voluntourist.