# Identity Theft via Fraudulent Loans: Your Action Plan
A thief opening a loan account in your name represents one of the most damaging forms of identity theft. Unlike credit card fraud, which typically caps losses at $50, fraudulent loans can saddle you with tens of thousands in debt you never authorized.
Act immediately upon discovery. First, contact the lender directly and report the fraud. Ask for a fraud dispute form. Most major banks and loan servicers, including Wells Fargo, Chase, and Sallie Mae, have dedicated fraud departments that process these claims within 30 to 60 days.
Next, place a fraud alert with all three credit bureaus. Equifax, Experian, and TransUnion must flag your accounts, which forces lenders to verify your identity before opening new credit. This free service lasts one year. You can file online at AnnualCreditReport.com or call 1-800-525-6285.
Pull your credit reports immediately using the same service. Review them line by line for unauthorized accounts, loans, or inquiries. Request a freeze if you discover multiple fraudulent accounts. This prevents new credit applications entirely and costs nothing.
File a police report with your local department. Request a copy with a case number. Lenders and creditors often require this documentation to process fraud claims faster. You should also file a complaint with the Federal Trade Commission at IdentityTheft.gov, which creates an official record.
Send written disputes to the lender and credit bureaus. Include the police report number, your fraud alert confirmation, and copies of any suspicious documents. Keep everything certified mail with return receipt requested. The Fair Credit Reporting Act gives creditors 30 days to investigate and respond.
Monitor your credit for 12 months. Fraudulent loans may reappear after removal. Some identity theft victims set