In this paper, a method for identifying the location and extent of a damage in a structure using residual forces was presented. Element stiffness matrix reduction parameters in a finite element model were used to describe the damaged structure mathematically. The element stiffness matrix reduction parameters were determined by minimizing a global error derived from dynamic residual vectors, which were obtained by introducing a simulated experimental data into the eigenvalue problem. Genetic algorithm was used to get the solution set of element stiffness reduction parameters. The proposed scheme was verified using Euler-Bernoulli beam. The results were presented in the form of tables and charts.