Identity thieves can open loans in your name, damaging your credit and leaving you responsible for debt you never incurred. Here's how to respond.
**Check your credit reports immediately.** Get free reports from Equifax, Experian, and TransUnion at annualcreditreport.com. Look for loans you don't recognize. These unauthorized accounts appear as hard inquiries and new tradelines, both of which tank your credit score.
**Place a fraud alert.** Contact one of the three credit bureaus and request a fraud alert. This alerts lenders to verify your identity before opening new accounts. The alert lasts one year. You can renew it annually.
**Consider a credit freeze.** A freeze locks your credit file so thieves cannot open new accounts. You'll need to temporarily lift the freeze when applying for credit yourself. Freezes are free and stronger than fraud alerts.
**File a report with the FTC.** Visit IdentityTheft.gov to file an official identity theft report. You'll document what happened and get a recovery plan. Keep this report handy. Creditors and credit bureaus may demand proof of the theft.
**Dispute unauthorized accounts.** Send written disputes to the credit bureaus and the lenders holding the fraudulent accounts. Include your FTC report. By law, creditors have 30 days to investigate. Many will remove false accounts within 45 days.
**Monitor your credit going forward.** Sign up for free credit monitoring through your credit card issuer or bank. Some offer it automatically. Paid services from LifeLock or similar companies provide continuous monitoring and identity theft insurance.
**Document everything.** Keep records of all correspondence, police reports, and dispute letters. Build a paper trail proving you reported the fraud promptly.
Most victims aren't held liable for fraudulent loans once they prove the theft