Identity Theft On Credit Report
If you notice unrecognized credit accounts or loans on your credit report, it might be a sign of identity theft - especially if the account appears on all three of your credit reports and is marked as derogatory. This type of fraud can seriously damage your credit, affect your ability to get approved for loans, and even cause issues with employment or housing.
How Is a Fraudulent Credit Account Opened?
To open a fraudulent credit account, an identity thief typically needs just enough personal information to appear legitimate. This often includes your full name, date of birth, address, and Social Security number - or even just the last four digits. In some cases, they may also use a forged or fake ID, or rely on gaps in online verification systems to get past basic security checks.
Thieves may obtain this information in several ways. It could come from a data breach, phishing email, malware attack, stolen mail, or even a discarded document with sensitive details. Some identity thieves purchase stolen information on the dark web, where entire consumer profiles are sold for relatively low prices.
Once they have your information, they can apply for a credit card, personal loan, store card, or even a line of credit at a bank. Many financial institutions allow online or over-the-phone applications, which don’t require in-person ID verification. During the application process, the thief may provide your real name and Social Security number but list their own mailing address, phone number, or email. This way, they receive the card or account credentials, and you remain completely unaware that an account has been opened in your name.
Because these fraudulent accounts can go unnoticed for weeks or months, many victims don’t find out until long after the damage has been done. Without regular credit monitoring or fraud alerts in place, it’s easy for an identity thief to continue using the account or open additional accounts.
Dispute Fraudulent Accounts On Credit Report - Our Legal Help
Disputing fraudulent credit accounts is a challenging process that involves contacting financial institutions, preparing an identity theft report, and disputing inaccuracies with credit bureaus. When you’re the victim of identity theft, it’s essential to act quickly to limit the damage to your credit report. A paralegal or legal assistant can guide you through the process by helping you identify which accounts are fraudulent, advising on whether filing a police report is necessary, and assisting you with investigating each account.
Once you've identified fraudulent accounts, the next step is to dispute them with the credit bureaus. Even though you may have a strong case with evidence, credit reporting agencies can still be slow or refuse to remove fraudulent entries. This is where the situation becomes more complicated. Without proper legal support, it’s easy to get stuck in a cycle of rejected claims and delays, leaving your credit report damaged.
If the credit bureaus continue to ignore your disputes or refuse to correct the fraudulent information, it may be time to take further legal action. This is when you need an identity theft attorney. An experienced attorney can take over the case, ensuring that the credit bureaus comply with their legal obligations to correct your report. They will handle the legal process, file a lawsuit if necessary, and help recover any financial losses or emotional distress you’ve suffered as a result of the fraud.
Best of all, you pay nothing out of pocket. We work on a contingency basis, meaning we only get paid if we win the case and get your credit cleared. Our goal is to ensure your reports are corrected and you are compensated for the harm caused by the fraudulent accounts.
