By Voung H.
Voung oversees AML/BSA, fraud prevention, and sanctions compliance and is responsible for building data-driven controls and partners across the FIGFCU to safeguard Members and stop emerging threats.
Summary
- Social media influencers are encouraging people to file false identity theft reports to “fix” their credit.
- This advice is misleading, illegal, and can seriously harm your financial future.
- Filing a false identity theft report is considered fraud and may carry criminal and financial consequences.
- While these tactics promise quick results, they often leave people worse off than before.
- There are multiple legitimate ways to improve your credit if you’re overextended.
A troubling trend has emerged on social media. Some influencers are claiming that you can “fix” your credit report by filing an identity theft report for debts that are yours. These videos often promise quick results, erased accounts, and a clean credit profile.
This advice is not only misleading, but it is also dangerous and illegal.
We want to make sure you understand the real risks and know how to protect yourself.
What is an identity theft report, and when is it appropriate?
An identity theft report is a formal statement made to authorities (often through an FTC Affidavit and/or your local law enforcement declaring that someone used your personal information without your permission to open accounts or incur debt.
It is meant only for actual victims of identity theft.
If you knowingly file a report claiming fraud on accounts that you opened or used, that report is false. Filing it can have serious legal and financial consequences, especially if done intentionally.
Why filing a false identity theft report is a serious problem.
Social media posts often downplay or completely ignore the consequences. Here’s the reality:
1. Filing a false identity report is fraud.
Filing a false identity theft report is considered making a false statement to a government agency. In many jurisdictions, this is a criminal offense that can lead to:
- Fines
- Criminal charges
- Permanent records
“No one checks” is a myth. Reports can and do get investigated.
2. Creditors can (and do) push back.
When you dispute an account as fraud, creditors may request:
- Documentation
- Proof of identity theft
- Police or FTC report verification
If they determine the claim is false, they can:
- Reinstate the debt
- Flag your credit file
- Close accounts
- Escalate the matter legally
This often leaves people in a worse position than before.
3. Filing a false identity report can damage your financial reputation long term.
False fraud claims can result in:
- Being flagged as high-risk by lenders
- Difficulty opening bank accounts
- Loss of existing accounts
- Increased scrutiny on future disputes
These consequences can follow you for years.
4. It hurts real victims of identity theft.
False identity reports slow down systems designed to help people whose identities have been stolen, making it harder for legitimate victims to get timely help.
Why influencer advice can be risky.
Just because an influencer has a large following doesn’t make them financial experts. Consider that a large percentage of social media influencers:
- Are not credit professionals or attorneys
- Do not understand the legal process
- Do not face the consequences on your behalf
They gain views and engagement. You carry the legal and financial risk.
If someone is telling you there’s a “loophole” or a “hack” that sounds too easy, consider it a big red flag.
What works to improve your credit (legally).
Improving your credit takes time, but it can be done without risking your future:
- Dispute legitimate errors on your credit report
- Work with creditors on hardship programs or settlements
- Create payment plans you can realistically maintain
- Use secured or credit-building products responsibly
- Get guidance from qualified credit professionals
These approaches may not be flashy, but they are safe, effective, and sustainable.
What to do if you’ve been a victim of identity theft.
- Report to the FTC: Go to IdentityTheft.gov, report the theft, and get your affidavit and recovery plan.
- File a report with your local law enforcement: Take your FTC affidavit and supporting documents (like fraudulent bills) to your local law enforcement to file a formal incident report. Use both the FTC report and the police report to contact credit bureaus, banks, and other companies to resolve the identity theft.
- Let us know: If you’re a Member of FIGFCU and suspect you’ve been a victim of identity theft, let us know immediately.
How to check your credit report.
Learning what’s in your credit report is easy. The three credit bureaus (Equifax, Experian, and TransUnion) offer free weekly online credit reports. Visit AnnualCreditReport.com to learn more.
You can also get a free copy of your credit report every 12 months from each credit reporting agency, ask for it at AnnualCreditReport.com.
Our commitment to you.
Our priority is protecting our Members, not just today, but long term. Any advice that encourages dishonesty, misrepresentation, or illegal actions puts you at risk, no matter how convincing it sounds online.
If you’re struggling with your credit or unsure how to move forward, reach out to us. There are legitimate solutions, and we can help you navigate them safely. Our free Certified Financial Counselors are here listen to your circumstance and offer practical advice to help you regain control of your finances.
Check out our financial education center for information on managing debt, dealing with creditors, and improving your credit.
Final thoughts.
There is no legal shortcut to removing accurate information from your credit report by falsely claiming identity theft. Filing a false identity theft report is not credit repair and will not “fix” your credit; it is fraud, and it can lead to serious, long-term consequences.
Despite what some influencers suggest, fraud claims are often reviewed and verified. If a report is found to be false, debts may be reinstated, accounts closed, and your financial reputation permanently harmed.
Improving your credit takes honest, lawful steps and realistic expectations. Disputing real errors and building positive credit over time protects your future. If you’re unsure how to proceed, we’re here to help you move forward safely and with confidence.
For more information on ways to protect your account, visit our Security Center and Current Scams page on our website.
This article is provided for educational purposes only and is not intended as legal advice, credit counseling, or a recommendation to take any specific action. Individual financial situations vary, and Members should consult qualified legal, financial, or credit professionals regarding their specific circumstances. The Credit Union does not provide legal advice and is not responsible for actions taken based on information obtained from third-party sources or social media. Federally insured by NCUA.
