What is one of the immediate steps to take after discovering identity theft?

Taking immediate action is crucial once identity theft is discovered, and placing a fraud alert and checking credit reports is one of the most effective first steps. A fraud alert notifies creditors to take additional steps to verify identity before opening new accounts, which can help prevent further unauthorized use of personal information. This proactive measure allows victims to regain some control over their identity and offers protection against further financial damage.

Checking credit reports afterwards is vital to understand the extent of the identity theft and to identify any unauthorized accounts or transactions that may have been opened in the individual’s name. This thorough examination helps in gathering essential information for reporting the theft and addressing it comprehensively.

The other options do not provide effective strategies for dealing with identity theft. Ignoring the situation ignores the potential for further damage, while reporting to family and friends is not going to resolve the immediate financial threat or help protect the victim's identity. Closing all financial accounts immediately may not be practical and could lead to complications without assessing the situation first. Thus, placing a fraud alert and checking credit reports is the most appropriate and immediate course of action.