If a person suspects they are a victim of identity theft, what is one of the first steps they should take?

Placing a fraud alert on credit reports is crucial for a person who suspects they are a victim of identity theft. A fraud alert acts as a warning to potential creditors that there may be fraudulent activity associated with the individual's identity. This alert requires creditors to take additional steps to verify the identity of the applicant before issuing new credit, significantly reducing the likelihood of further unauthorized use of the person's personal information.

This step is important because it allows the individual to protect themselves while they investigate the situation. A fraud alert typically lasts for one year, and during this time, the individual can work on addressing any issues without the risk of new accounts being opened in their name without their knowledge.

Regarding the other options, destroying all personal documents could eliminate crucial evidence needed to resolve the matter. Closing all bank accounts immediately might not be wise, as it can disrupt the individual's ability to manage their finances and could also impact the investigation. Ignoring suspicious activity would only expose the individual to further risks and potential losses. Placing a fraud alert is a proactive and strategic step that helps manage the situation effectively.