How to Respond to Identity Theft: 10 Essential Steps

By Talk About Debt Team
Reviewed by Ben Jackson
Last Updated: February 17, 2026
5 min read
The Bottom Line

Identity theft demands swift, decisive action to minimize damage. File police reports, freeze your credit, and document everything meticulously. If collectors sue you for fraudulent debts, respond immediately with a proper legal Answer that includes identity theft as your defense.

Answer the Lawsuit

Identity theft strikes without warning. When someone steals your personal information for fraud, the damage can be devastating. You need to act fast and decisively to protect yourself.

The emotional toll alone can be overwhelming. Financial institutions won’t wait for you to recover. You must take control immediately.

Sued for Fraudulent Debt? Respond Before the Deadline

Identity theft victims face fraudulent debt lawsuits every day. You have 14-35 days to file your Answer or lose by default. Defend yourself with proper legal documentation.

Draft Your Answer Now

Below are 10 critical steps to respond to identity theft.

Contact Your Financial Institutions First

Call your bank and credit card companies immediately. Tell them about the suspected identity theft right away.

They can freeze your accounts to stop further damage. Request new cards and account numbers. Don’t wait until tomorrow.

Every hour matters when protecting your money.

File a Police Report

Visit your local police station and file an official report. You need documentation of the crime.

Request a copy of the report for your records. You’ll use it to dispute fraudulent charges later. Creditors and credit bureaus will ask for this documentation.

The police report proves you’re a victim, not a willing participant.

Freeze Your Credit With All Three Bureaus

You must freeze your credit at all three major bureaus. Identity thieves can’t open new accounts in your name with frozen credit.

Contact each bureau individually:

Freezing your credit is free and reversible. You can unfreeze it anytime you need to apply for legitimate credit.

Review Your Credit Reports for Fraud

After placing fraud alerts, request free credit reports from all three bureaus. Examine every line for unfamiliar accounts or charges.

Document anything suspicious with screenshots and notes. Unknown credit cards, loans, or addresses are red flags.

You have the right to dispute fraudulent items. Keep detailed records of everything you find wrong.

Create an Identity Theft Report With the FTC

File a complaint with the Federal Trade Commission at IdentityTheft.gov. The FTC creates an official Identity Theft Report for you.

Your report helps remove fraudulent information from credit reports. Companies must stop collecting debts caused by identity theft when you provide this report.

The FTC report is your legal shield against fraudulent debt collection.

Change All Your Passwords Immediately

Update passwords for every online account you have. Start with financial accounts and email.

Create strong, unique passwords for each account. Consider using a password manager to track them all.

Enable two-factor authentication on every account that offers it. Thieves can’t access accounts with two-factor protection even if they have your password.

Document Every Communication About the Theft

Keep records of all phone calls, emails, and letters. Write down dates, times, and names of people you speak with.

Save copies of every document you send or receive. Take notes during phone conversations.

Your documentation becomes critical evidence if disputes escalate. Memory fades, but written records don’t.

Monitor Your Financial Statements Closely

Check your bank and credit card statements daily for several months. Look for any unauthorized transactions.

Report suspicious activity immediately to your financial institution. Don’t assume small charges are legitimate.

Identity thieves often test accounts with small purchases first. Catching them early prevents bigger problems.

Consider Enrolling in Credit Monitoring

Credit monitoring services alert you to changes on your credit reports. You’ll receive notifications about new accounts or inquiries.

Many services offer identity theft insurance and recovery assistance. Some financial institutions provide free monitoring after fraud.

Peace of mind has value after experiencing identity theft.

Learn How to Prevent Future Identity Theft

Educate yourself about common scams and tactics thieves use. Knowledge is your best defense against future attacks.

Shred documents with personal information before discarding them. Don’t share sensitive data over unsecured networks.

Stay vigilant about protecting your information. Identity theft can happen again if you’re not careful.

Respond to Fraudulent Debt Lawsuits

Identity thieves sometimes rack up debts in your name that lead to lawsuits. Debt collectors may sue you for fraudulent debts.

You must respond to any lawsuit within your state’s deadline. Response times range from 14 to 35 days depending on location.

Our partner Solo helps you defend yourself against fraudulent debt collection lawsuits. You can draft and file a proper Answer to the court.

How to Answer a Fraudulent Debt Lawsuit

Your written Answer must respond to each claim against you. Deny all claims if the debt resulted from identity theft.

Include affirmative defenses in a separate section. Identity theft is a valid legal defense against debt collection.

Present your FTC Identity Theft Report and police report as evidence. These documents prove you’re not responsible for the fraudulent debt.

Our partner Solo walks you through every step of responding to debt lawsuits. You don’t need expensive attorneys to defend yourself.

Get Help Responding to Fraudulent Debt Collection

Fraudulent debt lawsuits happen more often than you think. Collectors don’t always verify debts before filing suit.

You have the right to defend yourself in court. Ignoring a lawsuit guarantees you’ll lose by default.

Identity theft victims should never pay fraudulent debts. Fight back with proper legal documentation and a strong Answer.

Frequently Asked Questions

What is the first thing I should do if my identity is stolen?

Contact your bank and credit card companies immediately to freeze accounts and prevent further unauthorized transactions. Then file a police report and freeze your credit with all three major credit bureaus.

How do I respond to a debt lawsuit caused by identity theft?

File a written Answer to the lawsuit within your state's deadline (typically 14-35 days). Deny all claims and include identity theft as an affirmative defense. Attach your FTC Identity Theft Report and police report as evidence that the debt is fraudulent.

Can I be held responsible for debts created through identity theft?

No, you are not legally responsible for fraudulent debts if you can prove identity theft occurred. Your FTC Identity Theft Report and police report serve as legal documentation that protects you from liability for these debts.

What is an FTC Identity Theft Report and why do I need it?

An FTC Identity Theft Report is official documentation you create by filing a complaint at IdentityTheft.gov. You need it to remove fraudulent information from credit reports, stop debt collectors from pursuing fraudulent debts, and prove you're a victim in legal proceedings.

How long should I monitor my credit after identity theft?

Monitor your credit reports and financial statements closely for at least six months after discovering identity theft. Many experts recommend continued monitoring for a year or longer, as some fraudulent accounts may not appear immediately.