Finding an account you never opened or a collection you do not recognize is a gut punch. The good news: there is an official, step-by-step path for cleaning up the damage, and federal law gives you specific rights along the way. Here is how identity theft recovery generally works.
Flex Fuel does not promise deletions, score increases or approvals. This article is general education, not legal advice. Your recovery plan depends on what happened in your case.
Step 1: Contact the businesses where the fraud happened
Start with the accounts you already know about. The Consumer Financial Protection Bureau's guide for identity theft victims says to close affected accounts and contact the security or fraud departments at your financial institutions right away.
The FTC's IdentityTheft.gov recovery steps add a few practical details:
- Call the fraud department and explain that someone stole your identity.
- Ask them to close or freeze the affected accounts so no one can add new charges without your agreement.
- Change logins, passwords and PINs for your accounts.
One warning from the CFPB: scammers pretend to be the FTC, the CFPB, law enforcement and banks. Reach out using official websites and phone numbers you look up yourself, not numbers from a text, email or caller who contacted you.
Step 2: Put a protective layer on your credit file
Next, make it harder for the thief to open anything new.
- Fraud alert: According to the CFPB, a fraud alert requires creditors to make sure it is you before opening a new account, issuing an additional card or raising your limit. When you place one with one of the three nationwide credit bureaus, that bureau must notify the other two. An initial alert lasts one year. An extended alert, available once you have filed an identity theft report, lasts seven years.
- Credit freeze: The CFPB explains that a freeze stops new creditors from accessing your credit file until you lift it, and that you must contact each bureau separately to freeze all three.
Many victims use both. For a full side-by-side, read our breakdown of credit freezes and fraud alerts.
Step 3: Report it at IdentityTheft.gov
IdentityTheft.gov is the FTC's official site for reporting and recovering from identity theft. Based on what you enter, it creates your FTC Identity Theft Report and a personalized recovery plan. The FTC says that report proves to businesses that someone stole your identity and gives you certain rights.
Include as many details as possible. If you create an account, the site tracks your progress and pre-fills letters for you. If you do not, the FTC says to print and save your report and recovery plan right away, because you will not be able to access them later.
Step 4: Decide whether to file a police report
The FTC says you may choose to file a report with your local police department, and the CFPB lists it alongside reporting at IdentityTheft.gov. Your recovery plan will guide you.
If you go, the FTC suggests bringing:
- A copy of your FTC Identity Theft Report
- A government-issued photo ID
- Proof of address, such as a lease, mortgage statement or utility bill
- Any other proof of the theft, such as bills, collection letters or IRS notices
Ask for a copy of the police report. You may need it for later steps.
Step 5: Clean up your credit reports
Now go line by line through all three of your credit reports for accounts you did not open, inquiries you never authorized and addresses you never lived at. Flex Fuel clients use SmartCredit to see their credit reports and scores in one place and track changes. Write down every item you believe came from the theft.
Sorting through accounts you never opened? Book a time to walk through your credit reports and identity theft recovery plan with us.
Identity theft blocking under the FCRA (section 605B)
The Fair Credit Reporting Act has a specific tool for identity theft victims. Under section 605B (15 U.S.C. 1681c-2), a credit bureau must block information you identify as resulting from identity theft no later than four business days after it receives:
- Appropriate proof of your identity
- A copy of an identity theft report
- Your identification of the information that resulted from the theft
- Your statement that the information does not relate to any transaction you made
The bureau must also promptly notify the company that furnished the information. The CFPB adds that once creditors are notified, they cannot turn identity theft debts over to debt collectors.
The law also lets a bureau decline or rescind a block if it reasonably determines the block was requested in error, was based on a material misrepresentation, or that you received goods, services or money from the transaction. That is why the CFPB says to use this method only for debts that truly are the result of identity theft.
Disputes for everything else
Blocking is for fraud. For ordinary errors, such as a late payment that was actually on time, the standard dispute process applies. Our guide on how to dispute credit report errors walks through it. Never label an account you opened as identity theft; that can backfire and may carry legal consequences.
Step 6: Get it in writing from each business
For new accounts opened in your name, the FTC suggests calling each business's fraud department with your FTC report in hand, asking them to close the account, and requesting a letter confirming the account is not yours and that you are not liable for it. Keep those letters. If an account reappears later, they are your proof.
Step 7: Keep monitoring after the cleanup
Recovery is not a one-day project. The CFPB notes that even small charges you did not make can be a warning sign. Keep reading statements, keep watching your credit reports and keep your alert or freeze in place until you need to apply for credit.
Then the work shifts to rebuilding. Our explainer on why your credit score dropped and our guide to hard inquiries can help.
How Flex Fuel helps
Flex Fuel works with clients nationwide (we are based in Atlanta) to review all three credit reports, separate fraudulent items from accurate history, organize identity theft documentation and build a written plan for monitoring and rebuilding. We only take actions you authorize, and we never file identity theft claims for accounts you opened. Explore our services and see how our guarantee works.
Recovering from identity theft? Book a complimentary strategy session. We will review your credit reports with you and map out your next steps.
Book a Consultation ›Frequently asked questions
What is the first thing to do after identity theft?
The CFPB says to close affected accounts and contact the fraud departments at your financial institutions right away, then report the theft at IdentityTheft.gov to get an Identity Theft Report and recovery plan.
Do I need a police report for identity theft?
Not always. The FTC says you may choose to file one, and your IdentityTheft.gov recovery plan will guide you. Some creditors or situations may ask for it.
How fast must a credit bureau block identity theft information?
Under FCRA section 605B, a bureau must block the information no later than four business days after receiving proof of identity, an identity theft report, the items you identify and your statement. A bureau can decline or rescind a block in certain situations.
Will my credit score go back to normal after identity theft?
It depends on what was reported and what happens with each item. Blocking or correcting fraudulent information can help your reports reflect your real history, but no one can promise a specific score result.
