What should a victim of identity theft do first?

The correct response focuses on the immediate need for an identity theft victim to officially acknowledge and document the theft, which is crucial for further steps in the recovery process. Reporting the theft creates a formal record, which can be necessary when dealing with financial institutions, credit agencies, and law enforcement. This documentation serves as a key piece of evidence in disputing unauthorized transactions or accounts that may arise due to the theft.

While contacting the police and filing a report is certainly important, this step is typically part of the broader process that follows the initial report. Monitoring credit reports is also essential for tracking any fraudulent activity, but it is a proactive measure that should follow the initial steps of recognition and reporting. Changing passwords is a valuable security action, yet it does not address the immediate need to declare the theft officially and begin the necessary recovery steps. Thus, reporting the theft right away is fundamentally the priority to mitigate further risks and losses.