Stop the account and report the fraud immediately
If you discover a bank account opened in your name without your permission, contact the bank that issued it right away—call the number on any statement or paperwork, or look up the bank's fraud line online. Tell them you did not open the account and ask them to freeze it and close it. The bank will flag the account as fraudulent in their system, which stops further transactions.
Next, file a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record that you are a victim of identity theft. The FTC will give you a recovery plan and a number you can reference when you contact other institutions. You will also want to file a police report in your city or county—some banks and creditors require this before they will reverse fraudulent charges.
Contact the three major credit bureaus—Equifax, Experian, and TransUnion—and place a fraud alert on your credit file. A fraud alert tells lenders to verify your identity before opening new accounts in your name. You can do this by calling one bureau; they are required to notify the other two. The alert lasts one year and is free.
Key Takeaways
- Call the bank's fraud line immediately and ask them to freeze and close the account; do not wait for statements to arrive.
- File a report with the Federal Trade Commission at IdentityTheft.gov to create an official record and get a recovery plan.
- Place a fraud alert with the credit bureaus by calling one of them; they will notify the other two automatically.
- Check your credit reports for other unauthorized accounts and dispute any you did not open.
- Consider a credit freeze if you want to prevent new accounts from being opened without your direct permission.
Check your credit reports for other fraudulent accounts
Request your credit reports from all three bureaus at AnnualCreditReport.com, the official site run by Equifax, Experian, and TransUnion. You are may have access to to one free report from each bureau per year. Look for accounts you do not recognize—fraudsters often open multiple accounts at once.
For each fraudulent account you find, file a dispute with the bureau that is reporting it. Write to the bureau's dispute department (the address is on your credit report) and include a copy of your FTC identity theft report. The bureau must investigate within 30 days and remove the account if it cannot verify that you opened it. You can also dispute online through each bureau's website, though a letter creates a paper trail.
Keep copies of everything you send and receive. The bureaus will send you an updated credit report once the dispute is resolved, showing the account removed or corrected.
Understand what the fraudster may have done with the account
An unauthorized account in your name can be used in several ways. The person may have deposited stolen checks or money orders into it, then withdrawn the funds—leaving you with a negative balance and the bank holding you responsible. They may have used it to receive fraudulent wire transfers or direct deposits. Some fraudsters open accounts to hide money or to receive payments for goods they sold using a fake identity.
If the account has a negative balance, the bank may try to collect from you. Do not pay. Send the bank a written statement that you did not open the account and that you have filed a fraud report with the FTC and police. Include copies of your FTC report and police report. The bank should reverse the charges once they confirm the account was opened fraudulently.
If the account was used to receive stolen funds, law enforcement may contact you as part of their investigation. Cooperate and provide copies of your FTC report and police report. This protects you by showing you reported the fraud promptly.
Monitor your accounts and credit for the next year
Check your existing bank and credit card accounts weekly for the next few months, looking for unauthorized transactions. Set up account alerts with your bank so you are notified of large withdrawals or transfers. Many banks offer free alerts by email or text.
Pull your credit reports again in three to six months, even though you already have one free report per year. If you find new fraudulent accounts, dispute them the same way. Fraudsters sometimes make multiple attempts over time.
Keep your fraud alert active for the full year. When it expires, you can renew it for another year if you wish. If the fraud happens again, you can place an extended fraud alert that lasts seven years, though this requires additional documentation.
Know the difference between a fraud alert and a credit freeze
A fraud alert tells lenders to verify your identity before opening new accounts, but they can still open accounts if they follow the verification process. A credit freeze blocks lenders from seeing your credit report at all, which makes it much harder for a fraudster to open accounts. However, a freeze also makes it harder for you to open legitimate accounts—you have to temporarily lift the freeze each time.
Most people start with a fraud alert because it is simpler and free. If you want stronger protection and do not plan to open new accounts soon, add a credit freeze. You can place a freeze with each of the three bureaus for free. Some states also allow you to freeze your credit with specialty consumer reporting agencies like Clarity, LexisNexis, and Innovis, which lenders sometimes check.
You can lift a freeze temporarily or permanently at any time by contacting the bureau. Keep the PIN or password they give you when you set up the freeze—you will need it to make changes.
Recover money if the fraudster spent funds from the account
If the unauthorized account received deposits (such as direct deposits or wire transfers) and the fraudster withdrew the money, you may be able to recover it through the bank or through the source of the deposit. If the deposit came from an employer, government agency, or another business, contact them and explain that the account was opened fraudulently. They may be able to reverse the deposit and resend it to your correct account.
If the deposit came from a wire transfer, contact the sending bank immediately. Wire transfers are harder to reverse once they have been sent, but the sending bank can sometimes recall the transfer if the receiving bank has not yet released the funds. Act quickly—you have a narrow window.
If the account received stolen checks or money orders, the bank will eventually discover this and reverse the deposits. The fraudster will be liable, not you, but the process can take weeks or months. Do not withdraw money from the account or try to use it yourself during this time.
Report the fraud to other agencies if needed
If the fraudster used your name to open accounts with utilities, phone companies, or other service providers, contact those companies directly and report the fraud. Ask them to close the accounts and reverse any charges. Provide your FTC report number.
If the fraudster filed taxes in your name, contact the IRS at 1-800-908-4490 or file Form 14039, Identity Theft Affidavit. If they opened a loan or credit card in your name and it went to collections, contact the collection agency and provide proof of the fraud.
If the fraudster committed crimes using your identity (such as writing bad checks or committing fraud), law enforcement may contact you. Provide all documentation of the fraud and your reports. This protects you by creating an official record that you are the victim, not the perpetrator.
Frequently Asked Questions
Will I be responsible for money the fraudster spent from the account?
No. Once you report the account as fraudulent to the bank and provide your FTC report and police report, the bank should reverse all unauthorized transactions and close the account. Do not pay any negative balance the bank claims you owe. Send written documentation of the fraud instead.
How long does it take to remove a fraudulent account from my credit report?
The credit bureau has 30 days to investigate your dispute and respond. If the investigation confirms the account is fraudulent, it should be removed from your report within that time. If the bureau cannot verify the account, it must also be removed. Keep copies of all correspondence.
Can the fraudster open more accounts in my name after I place a fraud alert?
A fraud alert makes it harder but not impossible. Lenders are supposed to verify your identity before opening accounts, but some may not follow the rule. A credit freeze provides stronger protection because lenders cannot see your credit report at all. Consider adding a freeze if fraud happens again.
What if I do not know how the fraudster got my personal information?
You may never know. Common sources include data breaches, stolen mail, phishing emails, or information you shared online. Focus on stopping the fraud now and monitoring your accounts going forward. The FTC's recovery plan will guide you through the steps.
Do I need to hire a credit monitoring service or identity theft protection company?
No. Everything you need to do—placing fraud alerts, checking credit reports, disputing accounts—is free. Credit monitoring services and identity theft protection companies charge fees for services the government already provides at no cost. Your own monitoring of bank and credit accounts is often more effective than any paid service.