Identity Theft & Fraudulent Accounts

What this is

Identity theft occurs when someone uses your personal information — name, Social Security number, date of birth, or address — to open new accounts, take over existing accounts, create a synthetic identity, or obtain credit or services in your name without your authorization.

Why it hurts your credit

Fraudulent accounts report late payments, charge-offs, and collections — none of which you caused. Every derogatory mark tanks your score and can haunt you for years unless properly removed. Without the right dispute strategy, bureaus often return identity-theft disputes as "verified," leaving the fraud on your file.

The 4-business-day block — FCRA § 605B

If you have an FTC Identity Theft Report, you can request a block of fraudulent information under FCRA § 605B. The bureau must block the item within four business days of receiving your complete request — not the standard 30-day reinvestigation timeline. This is the most powerful identity-theft remedy in the law.

What your dispute letter must say

Your letter must identify the fraudulent account, state that you never opened or authorized it, request a block under § 605B (if you have an FTC report), and ask the bureau to notify the furnisher. Attach your FTC Identity Theft Report and proof of identity.

If the fraud keeps coming back

Reinserted items — fraud that was removed and reappears — are a separate violation. The bureau must notify you before reinserting and must have certified accuracy from the furnisher. If a removed item comes back without that process, it's an independent FCRA violation.

Your key rights

• 4-business-day block under FCRA § 605B when FTC Identity Theft Report is provided
• Free copies of fraudulent applications and records under FCRA § 609(e)
• Bureau must notify the furnisher of the block
• Bureau must not re-report blocked information without your consent
• FCRA violations entitle you to actual damages — lost credit, damaged reputation, time wasted, emotional distress — plus punitive damages; the losing defendant pays your attorneys' fees. Results depend on the facts of each case.