Credit fraud is a broad term that includes various illegal activities, such as unauthorized use of credit cards, manipulation of personal information, and falsification of financial documents to obtain credit. Such criminal activity can wreak havoc on your credit report, resulting in unpaid accounts, excessive debt, and a resulting drop in credit score. Fraud also increases the risk of higher interest rates and, in some cases, denial of credit altogether.

The process of credit repair after fraud involves working with credit bureaus to dispute and remove any fraudulent activities from your credit report. It is also crucial to educate the consumer on how to protect their personal information and avoid future fraud. Disputes must be formalized, and documentation may be required to prove that certain accounts are not yours. Once fraudulent items are removed, you can see a significant improvement in your credit score, reducing the stress associated with credit issues.