# Identity Theft Through Fraudulent Loans: A Step-by-Step Response Guide
Identity thieves open loans in your name to drain cash and leave you responsible for repayment. This form of fraud creates serious financial and legal consequences that demand immediate action.
The moment you discover an unauthorized loan in your name, contact the lender directly. Provide written notice that you did not authorize the account. Request that the lender freeze the account and stop collecting payments from you. Get the lender's fraud department contact information and file a report with them in writing.
Next, file a fraud report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record that protects you legally. The FTC will generate an identity theft report and recovery plan tailored to your situation.
Contact all three major credit bureaus: Equifax, Experian, and TransUnion. Place a fraud alert on your credit file, which requires creditors to verify your identity before opening new accounts. A fraud alert lasts one year and is free. Consider a credit freeze instead for stronger protection. A freeze prevents anyone, including thieves, from accessing your credit report without your permission. Freezes are free and typically last until you lift them.
Pull your credit reports from each bureau at AnnualCreditReport.com. Document every fraudulent account and dispute inaccurate entries with each bureau. Send disputes in writing with proof that the loan is fraudulent.
File a police report in your jurisdiction. While police may not actively investigate, the report creates documentation that strengthens your case with creditors and credit bureaus. Bring copies of the unauthorized loan paperwork and your identity theft report from the FTC.
Monitor your credit closely for the next year. Set up credit monitoring through your bank or a paid service like LifeLock or Experian IdentityWorks. Watch for