What should consumers do if they believe they are victims of identity theft?

When consumers believe they are victims of identity theft, placing a fraud alert on their credit report is a proactive step that alerts potential creditors to take extra precautions before extending credit. A fraud alert serves as a warning, informing credit reporting agencies that the consumer may have been a victim of fraud. This can help prevent unauthorized accounts from being opened in the consumer's name.

Additionally, placing a fraud alert typically requires creditors to verify the identity of the individual requesting credit, which adds an extra layer of security. The alert generally lasts for one year but can be renewed if necessary. It also allows individuals to obtain free credit reports to monitor their accounts for suspicious activity.

In contrast, ignoring the situation could exacerbate the issue, as identity theft can result in long-term financial consequences if not addressed promptly. Requesting a credit report without taking further action doesn't provide any defenses against potential identity theft or fraud. Completely changing personal information could be an extreme measure that complicates the resolution and could lead to additional complications in managing financial accounts. Hence, placing a fraud alert is the most appropriate and effective response.