3 Ways to Recover Your Savings After Identity Theft

Identity theft is an increasingly common crime, but that doesn't make it any less upsetting. According to the FTC, Americans lost $8.8 billion to fraud and identity theft last year. Knowing someone has used your personal information to steal money or create accounts in your name is unsettling. The good news is that in many cases, you'll be able to recover your money and protect yourself against future threats.

I've had my card cloned on several occasions. You'll often find the bank notices the problem before you do and freezes your card as a precaution. But that's not always the case, and identity theft can go much further than spending money on a card.

Here are three steps to take to recover your savings and your identity.

1. Contact your bank

The sooner you contact your bank or card issuer, the better chance you have of getting your money back. According to the Consumer Financial Protection Bureau, the timeframe and amounts you can recover depend on what went wrong.

Lost or stolen debit card

If your debit card goes missing, time is of the essence. If you tell the bank within two days from when you realize it's missing, it can only charge you for the first $50 of spending. If you wait longer, you may have to pay for up to $500 in unauthorized transactions. After 60 days, you may be liable for the full amount.

What to do: Call the number on your bank statement or the back of your card. If you use online banking or an app, you may be able to report fraud that way. You'll likely need to cancel your existing card and get a new one sent to you.

Unauthorized transactions on your bank account

If you notice spending you didn't make in your checking or savings account, report the issue within 60 days of receiving your bank statement. Your bank then has 10 days to investigate. If it finds an error, it has one day to fix it.

What to do: Contact your bank and ask for the fraud department. You may need to freeze your account, get a new card, and reset your banking passcodes. Follow up the phone call with a letter or email so you have a paper trail. Your bank will probably ask you to fill out and sign a physical form or affidavit that says you didn't make the transactions.

Credit card transactions

Credit cards offer a lot more protection against fraud than debit cards do. The maximum your card issuer can hold you responsible for is $50. Many top credit cards come with zero liability, meaning you won't have to pay for any unauthorized transactions.

What to do: Contact your card issuer to report the issue, put a stop on the card, and get a new one sent to you. You can start by calling or making a report online. Either way, follow up in writing -- the FTC has a sample letter you can use.

2. Report the crime

The FTC has a dedicated website for reporting various types of identity theft. It's worth creating an account so you can check back and use all the resources available. Not only could your report help catch the criminals or prevent others from experiencing similar issues, but it will also give you a personal recovery plan. You'll need to take your FTC identity theft report if you go to the police or have to follow up with specific companies to get your money back.

What to do: Go to identitytheft.gov for step-by-step instructions that differ depending on what kind of fraud was committed.

3. Check your credit reports and set up a fraud alert

Unfortunately, once criminals have your information, they may do more than steal from your bank account. They may borrow money in your name, which can do serious damage to your credit score if left unchecked.

If someone's stolen your identity, a fraud alert will make it harder for criminals to misuse your identity. Potential creditors will call you or take other steps to verify who you are before they open new credit. It will stay in effect for a year.

What to do: Contact the fraud department of one of the three credit bureaus. You only need to report the fraud to one bureau -- it will notify the other two.

• Equifax: Call 888-836-6351 or register it with Equifax
• Experian: Call 888 397 3742 or register it with Experian
• TransUnion: Call 800-916-8800 or register it with TransUnion

The bureaus should send you a copy of your credit report as soon as you set up the fraud alert. If they don't, you can request a free weekly copy from annualcreditreport.com. Check for any activity you don't recognize, such as accounts you didn't open or other errors or suspicious activity.

Be alert

Identity theft can happen in any number of ways. It's important to be suspicious of anyone who calls or emails asking for personal data, even if they say they are from an organization you trust. Review your bank and credit card statements for transactions you didn't make, and consider setting up suspicious activity alerts with your bank.

If you've been the victim of identity theft, it's worth being extra vigilant in the coming months. Schedule some calendar reminders to request copies of your credit reports so you can keep tabs on what's happening. That way you can sleep easy knowing nobody is running up debt in your name.

Criminals have increasingly sophisticated ways to part you with your cash. The more aware you are, the better chance you have of protecting yourself. Moreover, the earlier you spot any suspicious activity, the less damage they can do to your bank balance and credit history.