Usually the reject code will indicate with a number code that says which dependent is getting the reject. You can remove the dependents one at a time, and resubmit. If it is necessary to remove all of the dependents, you may choose to do that if you still are receiving a refund. Otherwise, mailing it in is a good idea also. You just won't be able to e-file to claim the dependent already claimed.
And, yes, if you suspect ID theft, it is also a good idea to report that also. This Help Article provides more information: What to do if you suspect tax-related identity theft
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