What To Do If You Are a Victim of Fraud (11 Steps)

What’s the First Thing You Should Do After Being Scammed?

Knowing what to do if you are a victim of fraud can make the difference between a quick recovery and months or years of hardship. Unfortunately, many people don’t take action quickly enough — as they often feel embarrassed and don’t know what to do.

Last year alone, over 2.6 million Americans were victims of fraud — with losses totaling more than $10 billion [*]. 

Regardless of how fraud happens, you should take immediate steps to protect yourself and limit further damage. After securing your accounts, you can collect information to help recover your losses and identity — and potentially bring the scammer to justice.

What To Do If You’re a Victim of Fraud: 11 Steps

1. Stop paying money to the scammers

Scammers are master manipulators and use social engineering to exploit your fears, influence your emotions, and trick you into trusting them. As soon as you realize you’ve been deceived, your first step is to stop sending any more money or sensitive information. 

Beware of these common fraud tactics to get you to continue paying: 

• Fees or taxes to “release” your money. Fraudsters pressure you to pay fees, taxes, or fines with the promise of releasing your earnings or investments. But once you pay, a new fee or fine will be required. 
• Transferring your savings to a “safe” account. No legitimate bank or lender will ask you to move your money to another account — especially by using apps like Zelle and Cash App or via cryptocurrencies. 
• Recovery scammers. Criminals target victims of fraud with “refund and recovery” scams. These imposters claim they can help you get your money back from the initial scam, but it’s a ruse designed to abuse your trust and steal more from you.

📚 Related: What To Do If You’ve Been Phished →

2. Collect evidence, and then break off contact

Cutting off contact with fraudsters is essential — but only after you gather evidence. If you let scammers know you're on to them too early, they could delete proof that would otherwise help you dispute the fraud.

Here’s what evidence to collect:

• Contact information. Even though scammers use fake identities, evidence such as spoofed emails, social media accounts, and phone numbers can still help investigators. 
• Conversations. Take screenshots of text messages, emails, and social media conversations. If possible, include supporting notes about phone conversations, with details about the chats, dates, times, etc.
• Profile photos. Scammers use fake photos to create their online personas, but you can use a reverse image search to discover where their photos were stolen. Saving all photos may also help prevent others from becoming victims of fraud.

3. Freeze your credit with all three major bureaus

You can prevent scammers from opening new accounts in your name by freezing your credit. To put a temporary security freeze in place, contact each of the three credit reporting bureaus individually (Experian, Equifax, and TransUnion):

4. Contact your bank, and cancel compromised accounts

Notify your financial institutions as soon as possible to protect your accounts and limit your liability. Call the phone number on the back of your debit card or credit card to request cancellation of your cards — you’ll be issued new ones that haven’t been compromised. 

If your credit card was stolen or lost, you can report fraud to the major U.S. credit card companies by calling these numbers:

• Visa: 1-800-847-2911
• Mastercard: 1-800-627-8372 (1-800-MASTERCARD)
• Chase: 1-800-432-3117
• Capital One: 1-800-227-4825 (1-800-CAPITAL)
• Citibank: 1-800-950-5114
• Bank of America: 1-800-732-9194
• Discover: 1-800-347-2683 (1-800-DISCOVER)
• American Express: 1-800-528-4800

5. Secure your online accounts

If your online accounts have been hacked, you’ll want to regain access and then secure them. This includes your email, social media, mobile banking, and other breached accounts.

What to do:

• Create unique, complex, and long passwords. To protect against brute-force attacks, each of your passwords should include 10–13 characters that combine uppercase and lowercase letters, numbers, and symbols.
• Enable two-factor authentication (2FA). Don’t just automatically rely on SMS for receiving 2FA codes. The most secure forms of 2FA utilize authenticator apps, fingerprint scans, or hardware security keys. ‍
• Use a password manager. It’s easier to create and store unique, complex login credentials when you use a password manager — plus, you’ll receive alerts about any at-risk accounts after a data breach.

6. Gather evidence to dispute fraudulent transactions

Getting your money back after a scam isn't always easy. Banks, government agencies, and other impacted companies likely need you to supply documented evidence from your financial records, credit reports, and more.

Here’s what to do:

• Review your credit reports. You can order your free credit reports from each of the three major crediting agencies at AnnualCreditrReport.com. Review the credit files for unauthorized changes, like new loans or bank accounts. 
• Examine bank and credit card statements. Note all unauthorized or unfamiliar transactions, including amounts, dates, times, and vendors.
• Don't ignore small charges. Thieves often test stolen credit card numbers by making small purchases before trying to max out credit lines. Question any and all unrecognized charges.

7. Report the fraud to the FTC, police, and other relevant authorities

Filing an official report with the Federal Trade Commission is one of the most important steps to take if your identity is stolen. Banks, bureaus, and government agencies will want to see your FTC identity theft affidavit before reversing charges or closing fraudulent accounts. 

You can file an FTC identity theft report online at IdentityTheft.gov. Then, notify any impacted financial institutions and government agencies, such as:

• If someone compromised your Social Security number (SSN): Contact the Social Security Administration (SSA) by calling its toll-free line at 1-877-438-4338.
• If you’ve been the victim of tax fraud: File IRS Form 14039 (along with your paper tax return) to inform the IRS that any other returns submitted under your name are fraudulent. 
• If you’ve been the victim of Medicare fraud: Contact the U.S. Department of Health and Human Services’s Fraud Hotline at 1-800-447-8477 (1-800-HHS-TIPS).
• If your identity was used during a crime: Contact the local law enforcement agencies — both where you live and where the crime was committed — and file a police report. 

📚 Related: How Does Identity Theft Impact Your Life? 10 Risks to Avoid → 

8. Obtain information from debt collectors under the FCRA

The Fair Credit Reporting Act (FCRA) grants all consumers the right to dispute inaccurate information in their credit reports [*]. If debt collectors are harassing you for unpaid fraudulent bills, you can request that they supply all information related to the debts. 

If debt collectors have already reported the debt: Contact the three credit bureaus to block reports that include any damaging information related to fraud. 

9. Preemptively claim important online accounts

Some types of fraud take years to surface — such as if a scammer uses your Social Security number (SSN) to get illegal employment or claim benefits in your name. One of the easiest ways you can prevent this from happening is to claim your online accounts with government agencies, such as:

• Social Security administration (SSA): Sign up for a my Social Security account to “lock” your SSN so that it can’t be used for employment without your consent.
• Internal Revenue Service (IRS): Sign up for an online IRS account and request an Identity Protection PIN (IP PIN).
• Credit bureaus: Create online accounts with all three bureaus to easily freeze and unfreeze your credit files (and prevent scammers from accessing them) — MyEquifax, Experian, and TransUnion.
• State unemployment office: If applicable, search online to see if you can create an account.

📚 Related: How To Check If Someone Opened an Account in Your Name → 

10. Check your insurance coverage

If you are a fraud victim, you could spend over six months and hundreds of dollars trying to recover from the consequences [*]. Identity theft insurance can save you time, money, and frustration by covering expenses (such as legal fees and child care) and lost funds (from missed work and scams) while you navigate the recovery process. 

If you haven’t taken out a dedicated identity theft insurance policy, you may be entitled to some support or coverage under your home insurance or employer’s policy.

11. Dispute fraudulent charges, and close accounts

Once your accounts and identity are secured, contact the credit bureaus to ensure unauthorized transactions, accounts, and inquiries are blocked so that they don’t harm your credit score. Credit reporting companies are legally required to block identity theft-related information from appearing on your credit report. 

As you work to repair your credit, you can also dispute charges with the fraud department of every business that reported a fraudulent transaction on your existing financial accounts and any company that reported a new account opened in your name by a fraudster.

What should you include in credit dispute letters?

• Proof of your identity, including your name, date of birth, address, and Social Security number (SSN)
• Copies of your police report and FTC report 
• Details of the fraudulent activity on your credit report
• A request for copies of documents that fraudsters used to open new accounts or charge purchases in your name

Keep a copy of each letter, and record the date of when you send each one. Set a reminder to follow up with each company if you haven't heard back within a month. You can view sample dispute letters on the FTC website. 

Can You Get Your Money Back After Being Scammed?

It’s not always possible to recover money from a scammer. Thieves often choose payment methods that are nearly impossible to trace or refund once the transaction is completed. 

Still, if you act quickly, you may be able to cancel, reverse, or refund the charge.

Where To Get Extra Fraud Victim Assistance 

Fraud isn’t just a financial crime — it can cause serious emotional damage, as well. 60% of fraud victims say they’ve struggled with their mental health after the crime [*]. 

The good news is that help is available. Government bodies, including the FTC and SSA, investigate fraud and offer assistance to victims. You can also get personalized support from identity theft providers like Identity Guard.

Here are some places that offer support for fraud victims:

• IdentityTheft.gov. For all victims of identity theft, the FTC offers a free online resource to report the fraud and receive a personalized recovery plan. Submit your affidavit online at IdentityTheft.gov or call 1-877-IDTHEFT (1-877-438-4338).
• The IRS’s Identity Theft Victim Assistance. If you suspect your tax information has been compromised, the IRS provides specialized support for identity theft victims. Visit IRS.gov/identitytheft for resources and to report incidents. For direct assistance, call the IRS Identity Protection Specialized Unit at 1-800-908-4490.
• The Social Security Administration (SSA). If your SSN has been stolen or misused, contact the SSA to report the theft and get help with replacing your card. Visit ssa.gov/ssnumber for more information, or call the SSA's fraud hotline at 1-800-269-0271.
• The FBI’s Internet Crime Complaint Center (IC3). To report cybercrimes and internet fraud, use the FBI’s IC3, which provides a platform to file complaints online. Go to ic3.gov to submit your report and access support resources.

📚 Related: How To Protect Yourself From Identity Theft in 2024  → 

How To Protect Against Fraud, Scams, and Identity Theft

Cybercriminals are increasingly targeting bank accounts, with 62% of financial institutions reporting a rise in fraud attacks against consumers last year alone [*]. To keep yourself and your accounts safe, follow these proactive protection steps:

• Use strong passwords, and enable 2FA on your accounts. Use unique and complex passwords for every account, and secure them with two-factor authentication (2FA) by using an authenticator app such as Authy.
• Hide your browsing activity by using a virtual private network (VPN). This encrypted connection masks your data and location from hackers. Always use a VPN when shopping or banking online via public Wi-Fi networks.
• Verify the identity of anyone asking for money, personal information, or access to your devices. If anyone asks for remote access to your device or sensitive data (like your SSN), you are under no obligation to comply. Ask why they need this information, and request that they share their official identification. If you have any doubts, end the conversation.
• Don’t click on suspicious links in emails and text messages. Fraudsters hide malware in masked links or attachments. If you fall prey to phishing attacks, you could unwittingly grant access to your device or data. Be wary of unsolicited communications that elicit a sense of urgency, and avoid clicking on anything.
• Never share personal information or account numbers. Even if a caller claims to represent your bank or the IRS, you should be wary of disclosing sensitive information. Nobody needs to know your SSN, PIN, or account passwords. 
• Regularly review your bank accounts and credit reports for signs of fraud. If you review your statements for suspicious activity every month, you can catch the early warning signs of identity theft before the fraud spirals out of control.
• Remove sensitive personal information from social media profiles and online data brokers. Start by adjusting your social media privacy settings. For a more comprehensive approach, you can use a data broker opt-out service to prevent scammers from researching you. 

While a quick response is critical to securing your finances and identity, it's not easy to take care of everything yourself. 

Identity Guard helps protect individuals and families from fraud, hacking, and identity theft with an award-winning platform that includes Dark Web and data breach monitoring, a secure password manager, 24/7 U.S.-based support, and up to $1 million in identity theft insurance coverage for every adult on your plan. 

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