# Identity Theft: What to Do When Someone Takes Out a Loan in Your Name
A criminal opening a loan account using your identity puts your financial future at serious risk. This form of identity theft damages your credit score, leaves you responsible for fraudulent debt, and can take months or years to fully resolve.
Act immediately if you discover unauthorized borrowing in your name. Contact the lender holding the fraudulent loan right away and report the fraud in writing. Request they freeze the account and stop all collection efforts while you investigate. Keep detailed records of every conversation, including names, dates, and reference numbers.
Pull your credit reports from all three bureaus: Equifax, Experian, and TransUnion. You can access free reports annually at annualcreditreport.com. Review them thoroughly for loans, accounts, or inquiries you never authorized. Dispute any fraudulent entries directly with the credit reporting agency. Lenders must respond within 30 days and remove unverified accounts.
File a report with the Federal Trade Commission at identitytheft.gov. This creates an official record and generates a recovery plan specific to your situation. Law enforcement agencies rarely prosecute identity theft, but documentation matters for credit disputes.
File a police report in your jurisdiction. Request a copy of the report number, which strengthens disputes with creditors and credit bureaus. Some lenders require police documentation before removing fraudulent accounts.
Consider freezing your credit with all three bureaus. A credit freeze prevents thieves from opening new accounts using your name. You'll need to unfreeze temporarily when applying for legitimate credit yourself. The freeze costs nothing and remains free even after identity theft occurs.
Monitor your credit closely going forward. Set up free credit monitoring through your bank or services like Credit Karma. Watch for additional unauthorized accounts or inquiries. Some identity theft victims face repeated fraud from the same criminals.
Recovery takes