Identity Theft

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Has anyone ever been a victim of identity theft? I have, and what makes it worse is that it is my own grandmother. She opened a credit with a $5000 limit and charged 3000 on the card. I haven't spoken to her in years due to family issues. I happened to check my credit report and that is how I found out. Now I'm stuck with the dilemma of filing a police report, and she might go to jail. Eventhough we don't get along I don't want to go to that extreme. What should I do??