Identity fraud happens quickly and almost always without warning. Recovery can take months under normal circumstances, so it's important to know what is needed to speed up the process. If your identity has been stolen and your financial life has been severely affected, here are five steps you can take to counter the event.
The long-term effects of identity theft
Identity theft is not a sudden event that is forgotten after a few months. Its impact can last for months, even years, and can cast a huge shadow over your life. There is a psychological aspect to identity theft, which can take its toll and leave you at odds with everything you previously took for granted. Being victimized by criminals in this way can lead to feelings of anxiety and violation. Sleep could also be affected: The Identity Theft Resource Center found that sleep disorders affect 41% of identity theft victims. Fear of financial security, feelings of helplessness, and suicidal feelings also occur in identity theft victims. Of course, identity theft also has a financial impact on the victims. You will almost certainly find yourself out of cash for a while. Borrowing from family and friends, selling property to cover identity theft costs, and even taking out payday loans rarely makes you feel better. The added stress of borrowing can lead to additional psychological stress. It can also result in a physical illness. Identity theft victims have reported everything from shortness of breath, high blood pressure and heart palpitations to fatigue, muscle aches and nausea. Then there's the issue of anger (identifying a cause; overanalyzing events) and even grief (loss of financial security, confidence, and aspirations).
A timeline of recovering from identity theft
Identity theft can rarely be quickly recovered. Much depends on the type of robbery you have suffered.
- Credit card fraud: The time it takes to find and report fraud is what you would expect in most cases. If you regularly check your credit card statements or have alerts set up on your account, it shouldn't last more than a month. Credit card companies will cover stolen credit.
- Total Identity Theft: With accounts opened in your name, recovery can take months. It takes time to challenge fraudulent bank accounts, loans, and other identity theft. Proof that you have not set up accounts is required. When tax debt is also incurred, as in some cases, or other crimes are committed in its name, repairing the damage can take years.
Unless you are very lucky and discover identity fraud early on, you will likely spend at least a year collecting the proceeds of identity theft.
![]()
(Image credit: Shutterstock / Sapann Design)
How to recover from identity theft
So how can you recover from identity theft and minimize the psychological impact? 1. Contact the fraud departments of the accounts in question. Once the fraud is discovered and it is clear that your identity has been stolen, it is essential that you report the fraud. Talk to the fraud departments of the banks and credit card companies involved. If the fraud was for auto financing or some other type of financing, talk to them as well. You should also register the theft with your local police department. All of these things must be done within a day of discovering the fraud. 2. Check your statements and records You need to know everything about your financial activity during (and some time before) the fraud. This means thoroughly reviewing your financial statements and financial statements. Also request statements that have not been sent to you. Try to cover everything from banks, loan companies and credit cards to online stores, PayPal accounts, everything.
![Mapas de Google]()
(Image credit: Shutterstock) 3. Detail your movements during the fraud period When it becomes clear when fraud has occurred, it is important that you take steps to record your activities and prove that you are not spending the money. Although fraud is common, unfortunately it is still important for victims to prove their innocence. Use Google Maps to keep track of your activities. Look for old receipts to show where he was, perhaps counting data from his employer to show that he was at work when a loan was obtained at a bank branch. 4. Get legal advice from an identity theft specialist. With as much supporting information as possible, it is a good idea to contact a lawyer. Legal advice is important at this point because your bank will be interested in you as part of their fraud investigation. However, don't just call the usual family lawyer. Instead, find someone who knows about identity theft and subsequent fraud issues. They will be able to deal with your bank and any federal contacts, which will help reduce personal stress. 5. Contact the Identity Theft Resource Center (ITRC) ITRC offers free help, which can tell you almost everything you need to know about identity theft. They offer help and detailed steps on what you can do in case of identity fraud. You'll find information on various scams, which can help you identify exactly what happened to cause your ID to be stolen. Meanwhile, the site also hosts various resources, facts, figures, and a regular newsletter. Affected by identity theft in the UK? Get in touch with the Action Fraud team.
Prevent future identity theft
You have overcome identity theft. You probably don't want to start over. To avoid a multi-month repeat of regaining your identity, your finances, and possibly even your sanity and health, take steps to secure your accounts. Stop clicking links in unsolicited emails from your bank, loan company, PayPal, Facebook, you name it. Learn how to spot fake emails, change all your passwords, follow stronger security steps (two-factor authentication, where a code is sent to your phone or email when you try to log into an online bank account, for example), and stay alert to risks. Know and understand how it happened the first time to reduce the chance of a repeat.