How Long Does It Take To Recover From Identity Theft?

Is It Possible To Quickly Recover From Identity Theft?

Unfortunately, there’s no single answer to the question of how long it will take to recover from identity theft. 

While the Federal Trade Commission (FTC) claimed nearly two decades ago that it could take “about 200 hours and six months” to recover a stolen identity [*], more recent surveys show that it takes the majority of victims anywhere from a few days to upwards of three months to find resolution after an attack [*].

The time it will take you to recover your identity depends on what information was stolen, how it was used, and how quickly you discover the crime.

With one in ten identity theft victims still dealing with unresolved cases, it’s imperative that you quickly act as soon as you see the warning signs. If you think you’ve a victim, this guide will help you understand the path to recovery, how long it could take, and what to expect along the way. 

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The 3 Factors That Determine How Long It Takes To Recover From Identity Theft 

The time it takes to recover from identity theft depends on three factors: the type of identity theft you’re dealing with, what information was leaked, and the speed of responsive action.

1. What type of identity theft occurred?

The type of identity theft you encounter can add complexity and time to your recovery process.

In one situation, a Yahoo! columnist and her husband resolved their case 36 hours after an imposter stole over $10,000 from their bank account [*]. But not everyone is so lucky. 

Here’s an overview of how long it typically takes to recover from different types of identity theft:

While the recovery steps vary by each specific type of identity theft, there are some general safety measures you should follow — such as filing an identity theft report with the FTC at IdentityTheft.gov, canceling compromised accounts and cards, and freezing your credit accounts with all three bureaus.

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2. How was your personal data used?

If scammers hack your Instagram account and lock you out, it’s mostly an annoyance. If they find your SSN, birthday, passport, and credit card numbers on the Dark Web after a data breach, it can lead to a nightmare. 

The types and amount of compromised personal information will have a direct impact on how long it takes to recover from identity theft. For example: 

• Name, address, and phone number. Contact details are less dangerous than other stolen information. However, the exposure of these details can make you a target for other scams, such as phishing or change-of-address scams. 
• Online account credentials. Scammers can use leaked usernames and passwords to take over your social media accounts, hack your online bank accounts, and make unauthorized purchases. Usually, reporting the breach and recovering your account is simple. However, one Milwaukee woman spent seven months trying to recover her hacked Facebook account [*]. 
• Social Security number (SSN). SSN theft is much more complicated and can lead to long-lasting fraud. For example, if an identity thief files a fraudulent tax return by using your SSN, the IRS now warns victims it can take up to 640 days to resolve the issue [*].‍
• Credit card numbers or other financial details. Armed with your financial information, scammers can create fraudulent accounts, rack up debt, and ruin your credit record. If left unchecked, clearing your name with debt collectors, banks, financial institutions, and government agencies can add months or even years to your recovery time.

3. How quickly did you discover the fraud?

The longer scammers are able to use your stolen information, the more complex your recovery becomes. 

Acting quickly as soon as you think your identity has been stolen will help speed up your recovery process by:

• Preventing further fraud. For example, ignoring an unfamiliar charge on your credit card statement could lead to further financial fraud, including fraudulent loan applications, government benefits fraud, check fraud, and more.
• Fixing issues with your credit. Under the Fair Credit Reporting Act (FCRA), credit bureaus must respond to disputes within 30 days of receiving them by mail — or within 45 days of your receiving a free credit report [*]. The longer you wait to send in a dispute, the more likely it is that fraudulent activity will negatively impact your credit score.
• Recovering stolen funds. Federal law requires banks to investigate and resolve disputed charge complaints on debit cards within 45 days. Credit card companies have up to 90 days to resolve payment disputes. The sooner you submit a complaint, the faster you’ll be able to recover lost funds [*]. 

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How Much Does It Cost To Recover From Identity Theft? 

While many ID recovery resources are free (e.g., filing an FTC or police report, freezing your credit, etc.), the financial costs of recovering from identity theft can still add up.

Here are some of the key costs associated with identity theft:

• Lost wages. The hours spent dealing with creditors, law enforcement, and credit bureaus can be substantial. Time taken off from work to handle identity theft issues can result in lost income.
• Administrative costs. You can accrue a lot of expenses for copies of credit reports, postage, and notary services, as well as for extra phone calls and trips to government offices.
• Fraudulent charges. While many fraudulent charges can be reversed, some may be harder to dispute — such as debit card charges or gift card purchases — leaving you out of pocket.
• Legal fees. In complex cases, you might need to hire an attorney to help resolve the situation.
• Damage to your credit score. A lower credit score can lead to higher interest rates or denied applications in the future. You may need to dig into savings if you can't get credit.

Identity theft recovery can cost thousands of dollars and months of your time. But even worse is the emotional toll of trying to deal with your recovery plan on your own. 

With Aura, you get identity theft protection, three-bureau credit monitoring, digital security tools, 24/7 U.S.-based support, and up to $5 million in identity theft insurance coverage — all for a low monthly cost. You can even try Aura for free to see if it’s right for you.

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How To Recover From Identity Theft

The identity theft restoration process involves three stages: restriction, reporting, and recovery.

Restricting the damage of identity theft

• Freeze your credit. Contact each of the three major credit reporting agencies — Experian, Equifax, and TransUnion — and ask them to freeze your credit. This will prevent scammers from accessing your credit file and taking out loans or opening new credit accounts in your name.
• Call your bank, lenders, and credit card issuer. Let them know your identity has been stolen, ask them to cancel your cards, and put a fraud alert on your accounts. 
• Contact any impacted company. Request a free credit report by visiting AnnualCreditReport.com. Look for any signs of fraud, and then contact impacted companies and ask them to close new accounts and reverse charges. 

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Reporting identity fraud

• File an identity theft report with the FTC. An FTC report is essential for disputing fraudulent charges. You can file online at IdentityTheft.gov or call the FTC at 1 877-438-4338. 
• File a police report (if necessary). Call your local police department and ask for the fraud department — this report can help catch local thieves and prevent you from being wrongly accused if someone uses your identity during a crime. 

Recovering from identity theft

• Dispute fraudulent charges and incorrect information on your credit report. Contact credit card companies and lenders, and ask them to remove charges and hard inquiries on your credit report. You may need to supply your FTC affidavit during the dispute process.
• Stop debt collectors from contacting you. If a criminal took out loans in your name, you’ll need to contact any debt collectors to remove your details from their files. The FTC has a good template you can use.
• Contact your identity theft insurance provider (if applicable). If you have identity theft insurance, call your provider first. They’ll help you navigate each step of the recovery process. 

If you want to safeguard yourself and your family against identity theft, remember to protect your sensitive information, be on the lookout for warning signs of fraud, and consider an identity theft protection service.

Aura’s award-winning identity theft protection platform includes three-bureau credit monitoring, Dark Web monitoring, and the industry’s fastest fraud alerts³. You’ll also get advanced digital security tools for all of your devices, round-the-clock access to a dedicated team of White Glove Fraud Remediation Specialists, and up to $5 million in identity theft insurance. 

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