Identity theft related to loans and leases is on the rise, impacting thousands of consumers nationwide. With over 202,000 cases reported in 2024, this financial fraud has become a silent yet devastating threat. Petroff Amshen LLP is committed to protecting victims of these crimes, offering legal support and guidance in restoring their financial identities.
NEW YORK CITY, NEW YORK / ACCESS Newswire / April 22, 2025 / Identity theft continues to evolve-and one specific type of identity theft is growing at an alarming rate. In 2024, more than 202,000 cases of loan or lease identity theft were reported nationwide, making it one of the most damaging and frequently encountered forms of financial fraud today.
Unlike credit card fraud or data breaches that tend to generate headlines, loan or lease identity theft often unfolds quietly, leaving consumers unaware until debt collectors call, loan rejections pile up, or their credit reports show loans they never requested. This type of identity theft involves fraudulently opening or using loans, leases, or rental agreements in someone else's name, affecting everything from personal loans and car leases to student and real estate loans.
In New York State, the impact is particularly concerning. With 7,811 cases reported in 2024, loan or lease identity theft ranks as the third most common type of identity theft statewide. For thousands of New Yorkers, this isn't a distant threat-it's a daily financial and legal battle.
Breakdowns of these incidents reveal the growing complexity of the issue
Business and Personal Loans comprised the largest share, representing over 47% of loan-related identity theft cases.
Auto Loan or Lease fraud followed closely, accounting for nearly 30%.
Additional subtypes included:
Apartment or House Rented: 8.8%
Non-Federal Student Loans: 6.3%
Federal Student Loans: 3.7%
Real Estate Loans: 4.2%
"The numbers are rising because this type of identity theft is harder to detect and easier to exploit," Serge F. Petroff, founding partner of Petroff Amshen LLP, a New York-based law firm focused on protecting consumers against financial harm. "When a loan is taken out in your name, the damage goes beyond your credit score-it can lead to aggressive debt collection, legal threats, and loss of employment depending on the nature of the loan."
What makes loan or lease identity theft so dangerous is that it often goes unnoticed until the consequences are severe. In many cases, victims don't even realize they have been targeted until they receive a bill, see a drastic drop in their credit score, or are denied access to credit they actually applied for.
At Petroff Amshen LLP, identity theft attorneys have seen firsthand how devastating these cases can be. The firm's approach involves not just identifying and assisting with disputing the fraudulent accounts but also working to ensure clients are protected from further harm. This includes legal representation in disputes with lenders and credit bureaus, guidance through identity restoration processes, and where necessary, litigation to hold negligent parties accountable.
"Many people feel powerless when they find out someone has taken out a loan in their name. But the truth is, you do have rights-and legal support can make a significant difference in the outcome," Mr. Petroff added.
The firm urges consumers to take proactive steps if they suspect they may be victims of this type of identity theft. This includes checking credit reports regularly, disputing unknown accounts immediately, and seeking legal advice as soon as signs of fraud appear.
Petroff Amshen LLP is committed to raising awareness about this growing threat. As cases continue to rise, the firm emphasizes the importance of early action and legal representation to hold financial institutions to higher standards of identity verification and response.
Petroff Amshen LLP is a consumer-focused law firm based in Brooklyn, New York. With decades of experience, the firm provides legal representation in areas such as identity theft, credit issues and foreclosure defense. Petroff Amshen's legal approach and commitment to justice have helped thousands of clients regain control of their financial future.
Contact Information
Gabriel Botero
Media Relations
media@petroffamshen.com
(718) 336-4200
SOURCE: Petroff Amshen LLP
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