The Federal Trade Commission (FTC) says identity theft is when someone uses personal or financial information without permission. The agency says a person who thinks this has happened should report it to the FTC and will get a free personal recovery plan with next steps. USAGov, the federal government’s public information site run by the General Services Administration, lists additional contacts.

What identity theft involves

The FTC says a thief might take a name and address, credit card or bank account numbers, a Social Security number, or medical insurance account numbers. According to the agency, the thief could use them to buy things with existing credit cards, open credit cards or phone, electricity or gas accounts in the victim’s name, steal a tax refund, get a job, or get medical care. The FTC adds that a thief could also pretend to be the victim if arrested.

USAGov says scammers can steal an identity in person, online, through social media and by phone. Its examples include stealing a wallet or purse, going through trash for bank statements or tax documents, and placing skimmers at ATMs, cash registers and fuel pumps. Skimmers are devices that digitally steal information from a bank card. USAGov also lists using public Wi-Fi to get information from a phone, and “phishing,” which it describes as getting information through fraudulent email, texts or phone calls.

Warning signs

USAGov says a person may not know right away that identity theft has happened. It lists these warning signs: bills for items the person did not buy, debt collection calls for accounts the person did not open, and credit report entries for accounts the person did not open. It also lists denied loan applications and mail that stops coming or goes missing.

The FTC offers similar guidance. It says a bill that stops arriving could mean someone changed the billing address. It also lists charges for things not bought, unexpected bills, bank withdrawals the account holder did not make, and unrecognized accounts on a credit report. The FTC says free credit reports can be used to check for those accounts.

Reporting and recovery steps

USAGov says to report identity theft by contacting three groups. The first is the FTC, online at IdentityTheft.gov or by phone at 1-877-438-4338. The second is the three major credit reporting agencies, which USAGov says to ask to place fraud alerts and a credit freeze. The third is the fraud department at credit card issuers, banks and other places where the person has accounts.

The FTC says IdentityTheft.gov gives detailed advice for fixing problems caused by identity theft. According to the agency, it lets people get a personal recovery plan that walks through each step, update the plan and track progress, and print pre-filled letters and forms. The letters and forms are for credit bureaus, businesses and debt collectors. The FTC says the site has advice for more than 30 types of identity theft, and for what to do if information was lost or exposed in a data breach.

As of September 2024, the FTC says reports can be made in English at IdentityTheft.gov and in Spanish at RobodeIdentidad.gov. For other languages, it lists the number 877-438-4338, option 3, with interpreters available from 9:00 a.m. to 5:00 p.m. ET.

USAGov also covers tax-related identity theft. It says that a person who believes this has happened but has not received an Internal Revenue Service (IRS) notification about it can learn about filing Form 14039. According to USAGov, filling out the Identity Theft Affidavit means a fraudulent return filed with that person’s information will no longer be valid.

Credit freezes and fraud alerts

The FTC describes a credit freeze as something that keeps people from getting into a credit report. While a freeze is in place, the agency says, nobody can open a new credit account. Freezes are free to place and lift, and the FTC says to place one by contacting each of the three credit bureaus: Experian, TransUnion and Equifax.

The FTC says an initial fraud alert tells businesses to check with the person before opening an account in that person’s name. Usually, the agency says, that means contacting the person first to confirm the applicant is really that person. The FTC says a fraud alert can be placed even when a freeze is already in place, if fraud is suspected.

According to the FTC, an initial fraud alert is free and lasts one year. It is placed by contacting one of the three credit bureaus, and that company must tell the other two.

The FTC says some companies sell credit monitoring, identity monitoring, identity recovery services and identity theft insurance. It says people may pay for them directly or get them through a bank, credit union, credit card provider, employer benefits program or insurance company. The agency notes that free credit reports can be used to monitor credit.

The FTC says credit monitoring services usually report things like a credit check, a new loan or card account, a late payment, a bankruptcy filing, a lawsuit or a change in credit limit. It says they will not alert someone to bank withdrawals or to a Social Security number being used to file a tax return and collect a refund. Most identity monitoring services, according to the FTC, will not alert someone if information is used to get Medicare, Medicaid, welfare, Social Security or unemployment benefits.

The FTC says identity recovery services typically provide counselors or case managers. They might help write letters to creditors and debt collectors, place a credit freeze, or guide a person through documents to review. The agency says some services will deal with creditors for a person who formally grants them authority to act on that person’s behalf. It adds that some of what they offer might be done alone for little or no cost.

The FTC says identity theft insurance may cover out-of-pocket costs directly tied to reclaiming an identity. Examples include copying, postage and notary costs, lost wages and legal fees. The agency says it generally does not reimburse money scammers stole or financial loss from the theft, and most policies do not pay if homeowner’s or renter’s insurance covers the loss.