Recover From ID Theft

Recovery Steps After Identity Theft

Updated October 3, 2016 . AmFam Team

If you find yourself the victim of identity theft, these steps can help you get back on track faster.

We live in an age of convenience, where things like our bank accounts and ordering pizza can be accessed with the touch of our finger. But, this also means we’re sharing a lot of our personal info online like never before. And some people might take advantage of that!

If you find yourself facing identity theft, it’s important to know the appropriate actions to take. We’ve outlined some steps for you to take to start the identity recovery process — and help you breathe a little easier!

Do You Think You Have a Stolen Identity? Look for These Signs

There’s a number of ways you can tell if someone is using your personal information:

  • If you see withdrawals from your bank account that you didn’t make or can’t explain.
  • You have charges on your credit card that you didn’t make.
  • Debt collectors call you regarding debts that aren’t yours.
  • There are unfamiliar charges or accounts on your credit report.
  • You get bills for utilities or medical services you didn’t use.
  • You aren’t getting your bills or other mail.
  • The IRS informs you that someone used your Social Security number for a tax refund or job.

It’s important to pay attention to your financial accounts, and if looking at them isn’t something you do regularly, you may want to start making it a habit. After all, it’s for your benefit! Here are some more tips to outsmart identity thieves.

How to Recover from Identity Theft

If you suspect fraud on any of your accounts, taking quick action is important to help reduce the damage and keep you pursuing what’s important. Take these three steps right away if your identity was stolen:

Place an initial fraud alert. There are three national credit reporting companies that can help you place a fraud alert on your credit: Equifax, Experian and TransUnion. You’ll only have to contact one company, and the good news is, the companies will work together on your behalf to make it harder for the identity thief to open new accounts in your name. Keep in mind, the initial fraud alert stays on your credit for 90 days, so mark your calendar in case you need to renew it.

Order your credit reports. When you place the fraud alert, you’ll be permitted to order one free copy of your credit report from each of the three credit reporting companies. You may have already contacted the businesses of accounts that were stolen from, but go over your reports thoroughly to see if there are other fraudulent transactions or accounts listed. If you notice debts that aren’t yours or accounts you didn’t open, you will have to write the credit reporting companies and the fraud department of each business that reported an error.

Your letter should include the following:

  • Open the letter by explaining you’re an identity theft victim.
  • List all the errors you found in the credit report.
  • Include all copies of documents showing the errors.
  • Ask the credit reporting company to remove the fraudulent information.

The credit reporting company will investigate your case, and they’ll send your information to the business that reported the information to them. Once the business gets the notice, they have 30 days to investigate and respond to the credit reporting company.

If the business finds an error, they’ll notify the credit reporting company and your credit file will be corrected. The credit reporting company will send a letter to you stating the correction.

Create an Identity Theft Report. This report helps you deal with credit reporting companies, debt collectors and businesses with accounts in your name. The report has a number of uses, including removing fraudulent information from your credit report, getting information from companies about accounts the identity thief opened or misused, and placing an extended fraud alert on your credit report. Some companies may want more or different information than what an identity theft report includes depending on their policies. But this is a good place to start.

There are three steps to creating an Identity Theft Report:

  1. Submit your complaint to the Federal Trade Commission (FTC) at Identitytheft.gov (Opens in a new tab) and print a copy of the report. This will print as an Identity Theft Affidavit.
  2. File a police report and get a copy or the number of the police report. You’ll need to bring your FTC Identity Theft Affidavit you printed when you file a police report.
  3. Attach your affidavit to your police report to complete the Identity Theft Report.

Next Steps for Identity Recovery

Now that you’ve set the recovery process in motion and have the credit reporting companies and police involved, you can confidently deal with the problem head on. Monitoring your accounts and credit reports will keep you in the loop about any suspicious activity, and to help avoid hassle down the line, consider logging all your phone calls about the fraud, along with saving all written documents and emails.

If you want more information on protecting your credit and correcting identity theft, check out the Federal Trade Commission’s IdentityTheft.gov (Opens in a new tab).

For extra protection and peace of mind, talk to your American Family agent (Opens in a new tab) about adding identity theft protection to your homeowners insurance — it’s smart, simple and affordable. You can even add identity theft protection to your renters insurance policy — just one more reason to get proactive about your protection!

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

Related Articles

  • Family of four walking hand in hand down beach
    Family of four walking hand in hand down beach
    Ways to Save Money for a Family Trip

    Among the many joys of being a parent is the opportunity to share your passions with your children. From exploring your favorite hobbies to diving into cherished family recipes, as your kids grow so do the memories you create together.

    Going on vacation with your children is a great way to bond with them, but it can get costly. The good news is that getting out of town doesn’t have to break the bank. Plan for your next family adventure by exploring the tips in these family vacation FAQs.

  • Man using entering his credit card info into his cellphone.
    Man using entering his credit card info into his cellphone.
    Credit and Identity Theft Monitoring

    Protecting your home with a security system and locking your doors when you leave for the day are measures you might take to protect your home from intruders. Credit and identity theft monitoring are a type of “security system” that protects you from intruders gaining access to your personal information. From credit fraud to identity theft, everyone is susceptible to these types of breaches — that’s why it’s so important to defend yourself against them.

    Credit monitoring and identity theft protection are two different ways to proactively protect yourself if your personal information gets into the wrong hands. Let’s take a look at the differences and why it’s important to implement them both together.

  • Couple looking at housing prices
    Couple looking at housing prices
    Saving for a House

    There are a few defining moments in our lives. For some, it’s the realization that buying that first home is within reach, both financially and emotionally. It’s a big step, and it’s one that’s built into the American dream. And if you’re left wondering how much money you should save before buying a house, you’re not alone. These costs can add up quickly.

    After you’ve made the big decision to start shopping for a home, you might be surprised to find that coming up with the cash down payment is only one of several financial hurdles you’ll need to clear. Exactly how much you should save for a house depends on a number of factors, like the value of the home you’re targeting and the amount of money you intend on pushing into your down payment.

  • A white woman budgets for saving money using a calculator at a cafe.
    A white redheaded woman works on her budget for saving money with a calculator at a cafe.
    Pay Off Student Loans or Buy a House?

    After college, life moves fast. You get your first big job, move out of your parents’ house and start a whole new life on your own. For most people, this also means paying off student loan debt from your college tuition. Having this debt may make big milestones like buying a house seem far off, but there are ways to make the leap from renter to homeowner even if you have student loans. So can you get a mortgage while also paying off student debt? Or should you wait to pay it off before you buy a house?

    Every situation is different, so it’s important to do the right research and choose the best option for you. Luckily, we’ve done some of the breakdown for you to help you decide whether to pay off your student loan entirely or buy a house.

    Can Student Loans Affect Buying a House?

    Typically, student loan debt doesn’t prevent you from getting a mortgage. The biggest thing to note is that student loan debt does influence your debt-to-income ratio, which is a factor lenders consider before giving you a loan. It can also affect the interest rate you pay on your mortgage.

    Buying a house with defaulted student loans

    If you’ve defaulted on your student loans, it’ll be more difficult — but not impossible — for you to get a mortgage. Because defaulting negatively affects your credit score, lenders will be less likely to want to give you a loan or will charge a much higher interest rate on a loan.

    Getting a home loan with student loan deferment

    If you’ve deferred your student loans, this usually won’t affect your chances of getting a mortgage. Just be sure to consider how the future estimated payments will factor your debt-to-income ratio. Some types of mortgages may reject applicants with deferred loans, so do your research on the different types of mortgages before shopping.

    Should You Pay Off Student Loans Before Buying a House?

    Buying a house is expensive, there’s no doubt about that. It can seem smart to hold off on house shopping while you still have student loan debt, and it can be even more difficult to save for a house if you’ve got a high debt-to-income ratio. But if you have enough income to handle the payments for both, you may want to consider investing in your first home.

    Signs You Should Pay Off Student Loans

    When considering whether to pay student loans or save for a house, there are a few factors that can help you decide if paying off your student loans should be a priority.

    Your debt-to-income ratio is too high

    If the amount of money you bring in monthly or yearly is almost the same as the amount of money you pay out in debts — like student and car loans or credit cards — it may be best to pay down your debt before buying a house.

    You’ve defaulted on your loans

    Defaulting on your loans has a severe negative impact on your credit score, which tells lenders that you’re a bigger risk to take on. Work on improving your credit score before shopping for a mortgage.

    You’re struggling to make payments

    If you feel like you’re living paycheck to paycheck or struggling to make payments on your loan every month, it’s best to hold off on saving for a house. Need help keeping track of your student loan payments? Try our student loan payment tracker to get organized.

    You haven’t saved for a down payment or emergency fund

    Before you start picking out which houses you want to tour, you should take a look at your savings. If you don’t have enough for a 5 to 10 percent down payment or enough as an emergency fund for home expenses — like a broken dishwasher or damaged roof — take more time to put money away for your first home.