Why physical ID theft is harder to fix than credit card fraud

Physical ID theft recovery proves more complex than credit card fraud, requiring police reports across multiple jurisdictions and extensive documentation. Security Why physical ID theft is harder to fix than credit card fraud How stolen driver’s licenses trigger police reports, credit disputes and legal records that take weeks to untangle By Kurt Knutsson, CyberGuy Report Fox News Published February 15, 2026 11:17am EST Facebook Twitter Threads Flipboard Comments Print Email Add Fox News on Google close Video Fox News Flash top headlines for February 14 Fox News Flash top headlines are here. Check out what's clicking on FoxNews.com. NEWYou can now listen to Fox News articles! It started with a voicemail from a Hertz rental car location in Miami, Florida. A 57-year-old woman in Los Alamitos, California, was asked when she planned to return a Mercedes-Benz she had never rented. A thief had stolen her driver's license, replaced the photo with their own and used it to rent the vehicle. The same identity was used to open a credit card account, book airline tickets and reserve hotel stays. By the time she learned what happened, the fraud involved businesses in multiple states. Clearing her name required police reports in two jurisdictions, written disputes with the credit card issuer and repeated contact with the rental company and hotels. Her accounts were frozen while she submitted notarized copies of her identification and signed fraud affidavits. The process lasted more than a week. She reported losing $78,500 and spent nearly ten days dealing with the fallout from one stolen ID.Credit card fraud is usually limited to a single account number. Physical ID theft gives someone the ability to act as you in the real world. As a result, the cleanup process is longer, more intrusive and often tied to your legal record. Sign up for my FREE CyberGuy Report Get my best tech tips, urgent security alerts, and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM newsletter. 5 MYTHS ABOUT IDENTITY THEFT THAT PUT YOUR DATA AT RISK A stolen driver’s license can allow someone to rent cars, open accounts and sign contracts in your name. (Photo by Silas Stein/picture alliance via Getty Images)How credit card fraud recovery worksUnder the Fair Credit Billing Act, you report unauthorized charges to the card issuer within 60 days of the statement date. Federal law limits your liability to $50, and most major issuers waive that entirely. The bank cancels the compromised card number, issues a replacement and removes the disputed charges after an investigation. You may need to confirm transactions and sign a fraud affidavit. The account number changes. Your name, driver's license and Social Security number stay the same. In most cases, fraud is resolved within one or two billing cycles. That structure gives consumers clarity. There is one issuer, one investigation and one account to correct.Why physical ID theft recovery is more complicated Physical ID theft creates problems that go far beyond one financial account. When someone uses your driver's license, they step into your legal identity. Start with reporting requirements. Most states require you to file a police report before the DMV will issue a replacement linked to fraud. That report number becomes part of your official record. If the misuse happened in another state, you may need to file a second report there.Next, understand what replacing the card actually does. A new physical card does not erase prior activity. Rental contracts, utility accounts, hotel stays, or police interactions tied to the stolen license still carry your name and license number. Fixing those records takes work. You must contact each business directly and submit documentation. No central agency reverses everything at once. Each company sets its own rules and timeline. The stakes can rise quickly. For example, if someone abandons a rental car or commits a crime using your stolen ID, law enforcement databases may record your name. At that point, the situation shifts from financial inconvenience to legal exposure. HOW TO PROTECT A LOVED ONE'S IDENTITY AFTER DEATH Police reports and formal disputes are often required before businesses will remove fraudulent records. (Kurt "Cyberguy" Knutsson)How to prove physical ID theft was not yoursWith credit card fraud, the issuer investigates the charge. With physical ID theft, businesses and agencies often require you to prove that you did not authorize the activity. That process usually starts at IdentityTheft.gov. The FTC generates an Identity Theft Report, which serves as an official statement of fraud. Most banks, collection agencies and rental companies will not proceed without it.You may also need:A local police reportA copy of your driver's licenseA notarized identity affidavitProof of residence tied to the date of the fraud When thieves open fraudulent accounts in your name, dispute each one separately. Act quickly. Send a written response within 30 days of the first collection notice to protect your rights unde