Final answer:
The Federal Trade Commission (FTC) should always be notified in the event of identity theft as it is the primary agency that oversees consumer protection and addresses issues related to economic harm caused to individuals.
Step-by-step explanation:
If you are a victim of identity theft, the federal agency you should always notify is the Federal Trade Commission (FTC). The FTC plays a critical role in combating issues that affect the economic life of every American, including identity theft, which is sometimes referred to as "True-name Fraud". Identity theft happens when someone wrongfully acquires and uses a consumer's personal identification, credit, or account information without their permission, leading to financial losses and a breach of trust in financial and governmental institutions.
The FTC oversees consumer protection and provides support for victims of identity theft, helping them to manage the consequences and start the recovery process. It is important for victims to also take preventive measures, like protecting credit/debit cards, securing mailboxes, using difficult-to-guess passwords/PINs, employing antivirus software, and notifying banks of any changes in contact information. While other agencies may be involved depending on the specifics of the case, such as the FBI or the Postal Inspection Service, the FTC is the primary agency for reporting identity theft.