What should consumers do after falling victim to identity theft?

After falling victim to identity theft, consumers should consider a credit freeze as a crucial step in protecting themselves from further financial harm. A credit freeze restricts access to the consumer's credit report, making it difficult for identity thieves to open new accounts in their name. This action serves as a proactive measure to prevent unauthorized users from obtaining credit, loans, or services, thereby minimizing the potential damage caused by the theft of personal information.

Implementing a credit freeze also gives consumers valuable time to assess the situation, identify unauthorized transactions, and work on restoring their credit. It typically requires the consumer to contact the major credit bureaus to initiate the freeze, allowing them tighter control over who can access their credit information.

This course of action is integral in the recovery process. It differs significantly from other potential options like continuing to use existing credit cards, which can increase the likelihood of further fraudulent transactions. Similarly, ignoring financial statements would leave consumers unaware of any additional unauthorized activities taking place. Rushing to open new accounts immediately could compound the issue, exposing the consumer to more risks associated with identity theft.