Identity Theft

The short version

Identity theft happens when someone uses your personal information, like your name, Social Security number, or credit card number, without your permission to commit fraud or other crimes. This can lead to serious financial problems for you, such as damaged credit, unauthorized purchases, or even false criminal charges. Federal laws provide you with specific rights and steps to take if your identity is stolen. Knowing these steps can help you recover and protect yourself from further harm.

The law this is built on

Every point below comes from the authority named next to it. Verify the current text before relying on it.

15 U.S.C. § 1681c-2
This law states that if you are a victim of identity theft, you can ask a credit reporting agency to block information resulting from the identity theft from appearing on your credit report. It also says that a business that has been notified of identity theft and provided with proper information must stop reporting the fraudulent information to credit agencies.
Why it matters: This means you have a legal right to remove fraudulent charges or accounts from your credit report, which protects your credit score and financial standing.
18 U.S.C. § 1028(a)
This section makes it a crime for someone to knowingly and without lawful authority produce, transfer, possess, or use a means of identification (like a driver's license or Social Security card) of another person with the intent to commit or aid any unlawful activity. It also covers using false identification documents.
Why it matters: This law makes identity theft a federal crime, meaning the government can prosecute those who steal your identity and use your information unlawfully.
18 U.S.C. § 1028(c)
This part of the law lists various activities that are considered part of the crime of identity theft, such as transferring or possessing five or more identification documents or authentication features, or transferring, possessing, or using a means of identification of another person in connection with specific federal crimes.
Why it matters: This shows the broad scope of actions that count as identity theft under federal law and the seriousness with which these crimes are treated.

Words you need to know

Identity Theft: Identity theft occurs when someone uses your personal identifying information, such as your name, Social Security number, or credit card number, without your permission, typically to commit fraud or other crimes.
Means of Identification: Under 18 U.S.C. § 1028, this refers to any name or number that can be used to identify a specific individual, including Social Security numbers, dates of birth, driver's license numbers, and credit card numbers.
Credit Reporting Agency: These are companies that collect and maintain consumer credit information and sell it in the form of credit reports to creditors, lenders, and other businesses. Examples include Equifax, Experian, and TransUnion.
Fraud Alert: A notice placed on your credit file that tells businesses to take extra steps to verify your identity before extending credit. This makes it harder for identity thieves to open new accounts in your name.
Security Freeze (Credit Freeze): This restricts access to your credit report, which means lenders and others cannot view it to open new accounts. This is a strong tool to prevent new identity theft, but you must temporarily lift it to apply for new credit yourself.
Identity Theft Report: A document compiled using information from the Federal Trade Commission (FTC) that helps you report identity theft to creditors and other entities. It can also include a police report.

Your rights

✓You have the right to ask credit reporting agencies to block information on your credit report that resulted from identity theft (15 U.S.C. § 1681c-2(a)(1)).
✓You have the right to get specific information from businesses about accounts opened or transactions made using your stolen identity (15 U.S.C. § 1681g(e)).
✓You have the right to place a free fraud alert on your credit reports with the three major credit bureaus.
✓You have the right to place a free security freeze on your credit reports with the three major credit bureaus.
✓You have the right to a free copy of your credit report from each of the three major credit bureaus annually.
✓You have the right to dispute inaccurate information on your credit report, and credit reporting agencies must investigate those disputes.

How the process actually works

1
Report the Theft
As soon as you suspect identity theft.
The first step is to report the identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov. They will help you create a personalized recovery plan and an official Identity Theft Report.
2
Place Fraud Alert
Immediately after reporting to the FTC.
Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit report. The bureau you contact will notify the other two. This alert makes it harder for thieves to open new accounts in your name.
3
Review Credit Reports
Regularly, and immediately after placing a fraud alert.
Obtain and review your credit reports from all three major credit bureaus. Look for any accounts you didn't open or charges you didn't make.
4
Contact Businesses
As soon as you identify fraudulent accounts or charges.
Contact the fraud department of any company where the identity thief opened an account or made charges. Explain that you are a victim of identity theft and ask them to close the fraudulent accounts and dispute any charges.
5
Place Security Freeze
After dealing with immediate fraudulent accounts, or if you want stronger protection.
Consider placing a security freeze (credit freeze) on your credit reports with each of the three major credit bureaus. This prevents anyone, including you, from opening new credit in your name until you lift the freeze. This is a stronger protection than a fraud alert.
6
File a Police Report
If required by creditors or if your case involves significant loss or specific crimes.
Even if the FTC Identity Theft Report is sufficient for some creditors, filing a local police report can be helpful for more serious cases or if a creditor requests it. Bring your FTC Identity Theft Report and any proof of the theft.
7
Update Records
Immediately after discovery and ongoing as needed.
Update your passwords for all online accounts, especially financial ones. Consider changing any compromised information like email addresses or phone numbers. Also, report any stolen government identification documents (like a driver's license or passport) to the issuing agency.

Deadlines that can end your case

Initial Fraud Alert
At least 1 year
A fraud alert lasts for at least one year and can be renewed. It requires creditors to verify your identity before opening new credit.
Extended Fraud Alert
7 years
If you provide an Identity Theft Report, you can request an extended fraud alert which lasts for seven years. This also removes your name from pre-screened credit offers for five years.
Blocking Fraudulent Information on Credit Reports
Within 30 days of notice (for credit bureaus)
Once you provide a credit reporting agency with an Identity Theft Report, the agency generally has 30 days to block the fraudulent information from appearing on your credit report (15 U.S.C. § 1681c-2(a)(2)). If they fail to do so, you can escalate the issue.
Free Credit Report Access
Annually
You can get one free credit report from each of the three major credit bureaus every 12 months. After identity theft, you may be entitled to additional free reports.

Costly mistakes

✕Not reporting the theft quickly to the FTC and credit bureaus, allowing more damage to occur.
✕Only checking one credit report instead of all three, missing fraudulent accounts on other reports.
✕Failing to follow up with businesses or creditors to ensure fraudulent accounts are closed and charges removed.
✕Not changing compromised passwords or security questions for online accounts, leaving them vulnerable to further attack.
✕Throwing away financial documents without shredding them, making it easier for thieves to gather your information.
✕Ignoring small signs of identity theft, like unexpected bills or unfamiliar accounts, thinking they are just errors.

Your checklist

Go to IdentityTheft.gov to report the theft and get a recovery plan.
Place a fraud alert on your credit reports with Equifax, Experian, and TransUnion.
Order and review your credit reports from all three bureaus for any suspicious activity.
Contact the fraud department of any company where fraudulent accounts were opened or transactions occurred.
Consider placing a security freeze on your credit reports for stronger protection.
Change passwords for all financial accounts and any other compromised online accounts.
File a police report if required by creditors or for significant financial losses.
Keep detailed records of all communications, reports, and documents related to the identity theft.

Common questions

What is an Identity Theft Report and where do I get one?

An Identity Theft Report is a document created through the Federal Trade Commission (FTC) at IdentityTheft.gov. It helps you report the crime and provides a personalized recovery plan. This report can serve as official proof of identity theft when dealing with creditors and credit bureaus.

Will placing a fraud alert stop all identity theft?

A fraud alert makes it harder for identity thieves to open new accounts in your name by requiring businesses to verify your identity. However, it does not prevent thieves from using existing accounts or misusing your information in other ways. For stronger protection, consider a security freeze.

What if I see unfamiliar charges on my credit card but no new accounts?

If you see unfamiliar charges, contact your credit card company immediately to report the fraud. They will usually investigate and remove the fraudulent charges. You should also check your credit report to ensure no new accounts were opened without your knowledge, and place a fraud alert or security freeze.

How does 15 U.S.C. § 1681c-2 help me if my identity is stolen?

This federal law specifically states that if you are a victim of identity theft and provide certain information, credit reporting agencies must block information that resulted from the identity theft from appearing on your credit report. This helps clean up your credit history by removing fraudulent items.

Is identity theft a federal crime?

Yes, identity theft is a federal crime under 18 U.S.C. § 1028. This law makes it illegal for someone to knowingly use or possess another person's means of identification without lawful authority, with the intent to commit or aid any unlawful activity. This means federal authorities can prosecute those who steal your identity.

How this changes by state

While federal laws provide a baseline for identity theft protection and remedies, state laws can offer additional protections or have specific requirements for reporting or remediation. Some states may have stricter security freeze laws, specific definitions of identity theft, or additional rights for victims, such as restitution provisions. To find your state's specific rules, you can search your state's official government website or legal resources, often by looking up 'identity theft laws [your state name].' Your state's Attorney General's office is also a good resource.

When you need a lawyer

You should consider contacting a lawyer if you are having significant trouble removing fraudulent information from your credit report despite following all the steps, if you are being sued by a creditor for a fraudulent debt, if you face criminal charges as a result of identity theft, or if your identity theft case is complex and involves substantial financial losses that you are struggling to recover.

Do this today

→Visit IdentityTheft.gov right now to create an Identity Theft Report and get a personalized recovery plan.
→Call one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place an initial fraud alert on your credit files.
→Order your free credit reports from AnnualCreditReport.com and review them carefully for any unauthorized activity.

This lesson is legal information for educational purposes only, based on 15 U.S.C. § 1681c-2; 18 U.S.C. § 1028. It is not legal advice and does not create an attorney-client relationship.