What should you do if you become a victim of identity theft?

If you become a victim of identity theft, immediately placing fraud alerts with credit agencies is a critical step to protect yourself. By doing this, you notify credit agencies that your personal information may be compromised, which makes it harder for the identity thief to open new accounts in your name. Fraud alerts serve as a warning to potential creditors to take extra steps to verify your identity before granting credit, safeguarding your financial future.

This proactive approach allows you to mitigate the risks associated with identity theft effectively. Once a fraud alert is in place, creditors are required to contact you or verify your identity through other means before extending credit. This gives you a chance to respond to potential fraudulent activity before it can escalate.

In contrast, waiting to see if the issue resolves itself could result in further financial damage, and informing friends and family while helpful in personal terms does not directly stop the identity theft from continuing. Changing passwords is important for online security, but alone it does not address the broader implications of having your identity stolen, which primarily involves financial institutions and credit reporting. Therefore, taking immediate action with credit agencies is crucial for preventing further harm.