Identity restoration
Hands-on help from a caseworker to undo identity theft damage by disputing fraud, writing to creditors and fixing your records. Breach settlements often include it.
Also called: identity theft restoration, identity recovery, ID restoration services
Hands-on help from a caseworker to undo identity theft damage by disputing fraud, writing to creditors and fixing your records. Breach settlements often include it.
What it means
Identity restoration, also called identity recovery, is hands-on help fixing the damage after someone steals your identity. A counselor or case manager helps you write letters to creditors and collectors and place credit freezes. They also guide you through the paperwork needed to dispute fraudulent accounts. Some services can act for you if you give written authorization.
Restoration is usually sold with credit monitoring or identity monitoring, and it is often part of the package a company offers after a data breach. It may come with identity theft insurance. The FTC says that insurance may cover out-of-pocket costs such as copying, postage, notarization, lost wages and legal fees. It generally does not repay money a scammer stole.
You can also do much of the work yourself. IdentityTheft.gov, run by the FTC, gives you a personal recovery plan, pre-filled letters and forms, and a way to report the theft.
What it means for you
Settlement notices often list identity restoration next to credit monitoring, and it only matters if something goes wrong. Read what it covers, how long it lasts, and whether you must sign up first. Restoration helps you repair accounts and records. It does not repay stolen money. Save records of any fraud and any costs you pay, because many settlements reimburse documented losses separately. If nothing has happened to you yet, you do not need to act, but keep the enrollment details in a safe place.
Example
Say a hypothetical streaming service breach exposes your personal data, and a thief opens a credit card in your name. Under the settlement you are eligible for identity restoration, so you call the number in your notice. A specialist helps you dispute the card, send letters to the issuer and the credit bureaus, and place a freeze. The hours you spend on the problem, and any fees you pay, may also be claimable as separate losses under the settlement.
FAQ
No. Monitoring alerts you when something changes on your reports. Restoration is help fixing the damage after identity theft, usually from a counselor or case manager. They are often sold together.
Generally not. The FTC says identity theft insurance may cover costs like copying, postage, notarization, lost wages and legal fees, but it generally does not reimburse money a scammer stole. Check the policy's limits and exclusions.
Related terms
- FTC: What To Know About Identity Theft (credit monitoring and identity theft protection services)
- FTC: Identity Theft, A Recovery Plan (IdentityTheft.gov)
- CFPB: What is identity monitoring or an identity theft service?
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.