Victims of identity theft can recover out-of-pocket losses, statutory damages under laws like the Fair Credit Reporting Act, compensation for emotional distress and pain and suffering, class action settlement payouts, and in some cases punitive damages for especially reckless conduct. The amount available depends on documented losses, the strength of the claim, and who is responsible, so consulting an attorney early is recommended.
Tens of millions of people have their identities stolen every year. In fact, nearly 15 million people were victims of identity theft in 2019. Of those identity theft victims who suffered unreimbursed expenses due to identity theft, the median loss was approximately $400. In other words, identity theft has a major impact on its victims, and those who suffer financial losses due to identity theft often must resort to legal action to recoup their losses. Luckily, the victims of identity theft may be entitled to damages, which are a form of financial compensation. Below is an overview of identity theft lawsuits, including the types of damages available in these cases. For additional information, please contact a consumer class action attorney as soon as possible.
Who Is Liable for Identity Theft?
Before you seek damages in an identity theft lawsuit, you must determine who is at fault for your losses. In a perfect world, you would bring a lawsuit against the person who stole your identity. However, identity thieves are often difficult to catch. Luckily, in cases where the thief can’t be located, there are other parties who may be held liable for your losses. Certain institutions are responsible for keeping your personal information, such as your Social Security number, private. When they fail to do so, they can be held responsible for your losses. Parties that can be held liable for identity theft include:
- Banks and other financial institutions,
- Government entities,
- Creditors, and
- Employers.
What Legal Claims Can You Bring After Identity Theft?
There are several causes of action for identity theft due to the various ways that an identity can be stolen. Examples of possible causes of action include:
- Infliction of emotional distress
- Negligence
- Invasion of privacy
- Breach of fiduciary duty
- Breach of contract
How Much Can You Sue For Identity Theft?
There’s no single dollar figure attached to every identity theft case — the amount depends on your actual losses, the strength of your claim, and who’s responsible. That said, a few benchmarks can help you understand the range:
- Out-of-pocket losses: Victims can typically recover documented costs directly tied to the theft — money stolen from accounts, fraudulent charges, fees to freeze or monitor credit, and time or wages lost dealing with banks and credit bureaus.
- Statutory damages: Certain federal laws, like the Fair Credit Reporting Act, allow victims to recover a set range of statutory damages per violation when a company willfully mishandled their information, even without proving a specific dollar loss — separate from any actual damages you can show.
- Emotional distress and pain and suffering: These damages vary widely based on the severity and duration of the harm and are harder to put a fixed number on, but they can meaningfully increase a case’s value when the theft caused significant stress, anxiety, or disruption to your life.
- Class action settlements: In large data breach cases, individual payouts have historically ranged from modest sums (often in the low hundreds of dollars) up to several thousand dollars for victims who can document more serious, direct financial harm.
- Punitive damages: In cases involving especially reckless or willful misconduct by the responsible company, a court may award additional damages meant to punish the wrongdoer — these can significantly exceed your actual losses, though they’re awarded less often.
How to File an Identity Theft Lawsuit
If you’re considering legal action after your identity was stolen, the process generally follows these steps:
- Report the theft. File a report with the FTC at IdentityTheft.gov and a report with your local police department. These reports create an official record and are often required before banks, creditors, or courts will act on your claim.
- Identify the liable party. Determine who may be legally responsible — this could be a bank or financial institution that failed to secure your account, a company that suffered a data breach, a creditor that extended credit in your name without verification, or an employer that mishandled your personal records.
- Gather your documentation. Collect account statements, fraud alerts, correspondence with the businesses involved, and records of any financial or emotional harm you experienced.
- Send a demand letter. Before filing suit, an attorney will often send the liable party a formal demand explaining the harm caused and requesting compensation — many cases resolve at this stage without going to court.
- File the lawsuit. If the matter isn’t resolved, your attorney will file a complaint in the appropriate court, citing the relevant legal theories (such as negligence, breach of fiduciary duty, or violations of consumer protection statutes).
- Litigation or settlement. From there, the case proceeds through discovery and negotiation, and either settles or goes to trial.
Because deadlines and the right legal theory depend on the specifics of your case, it’s best to consult an attorney early in the process to make sure your claim is filed correctly and on time.
Contact a Consumer Class Action Attorney Today
If you have suffered losses due to identity theft, you need to contact an experienced consumer class action attorney as soon as possible. As noted above, identity theft is often the result of the negligence of financial organizations and other businesses that store or have access to your personal information. When an entity provides a party with unauthorized access to this information, our attorneys will work hard to hold it responsible for your financial losses. Our talented legal team has extensive investigative, litigation, and trial experience, which means that we understand what it takes to be successful in your consumer class action lawsuit. Please contact us today to schedule a consultation.