FTC Warns Against Filing False Identity Theft Reports

Through targeted advocacy, ACA has urged the FTC to implement stronger fraud mitigation measures that protect legitimate victims while flagging fraudulent identity theft filings.

As 2026 begins, a persistent trend among social media “finfluencers” has drawn scrutiny from both federal regulators and industry leaders for its impact on the credit landscape.

The term “finfluencers” refers to financial influencers — individuals or entities on social media platforms who provide financial advice, tips, or templates, often without formal credentials or a full understanding of regulatory requirements.

According to a recent Federal Trade Commission consumer alert, a surge of these online personalities are coaching followers on a so-called “secret hack” to instantly wipe negative marks from their credit reports.

The influencers say the fix is to file a false identity theft report at IdentityTheft.gov in an attempt to trigger the automatic removal of legitimate debts.

The FTC strongly warns against following this advice. “Filing a false identity theft report may leave you worse off — and it’s a crime that could get you a fine, imprisonment, or both,” the consumer alert states.

The alert further explains that influencers are encouraging consumers to falsely claim that debts they legitimately owe — like credit card balances or medical bills — are the result of identity theft.

Industry Impact

The trend aligns with a broader rise in fraud activity that ACA International highlighted in its fraud mitigation recommendations to the FTC.

In a letter to FTC Bureau of Consumer Protection Director Chris Mufarrige (PDF), ACA CEO Scott Purcell said many of the identity theft filings are incomplete, confusing, or fail to include sufficient facts to prove identity theft.

ACA also highlighted how the credit ecosystem is being destabilized by sophisticated credit repair organizations and bad actors. ACA noted that these entities often use automated “bot” technology to flood collection agencies and credit bureaus with mass, frivolous disputes.

Why “Surging Complaints” Tell a Misleading Story

The rise in these illegal hacks also provides critical context for the recent headlines about surging debt collection complaints.

In the member alert, “ACA Responds to Reports on Surging Debt Collection Complaints,” ACA pointed out that a significant portion of the “complaints” logged by federal databases are actually generated by credit repair companies or consumers using these “influencer-approved” templates.

These are not always legitimate grievances about collector behavior, but rather a tactical effort intended to force the deletion of accurate information through sheer volume.

ACA has urged the FTC to strengthen fraud mitigation by:

1. Requiring stricter verification for disputes to ensure they come from real consumers with real issues.
2. Targeting “Fraud-as-a-Service” firms that profit by teaching consumers how to break the law.
3. Improving the IdentityTheft.gov portal to prevent bad actors from using it as a tool for credit repair fraud.

The Right Way to Fix Your Credit

For consumers looking to improve their standing in 2026, the advice from both the FTC and ACA is clear: There are no shortcuts.

Try these steps:

• Dispute real mistakes: If a balance is wrong or an account isn’t yours, use the legal dispute process.
• Communicate with the agency: ACA members are trained to help consumers set up repayment plans or identify hardship programs.
• Use legitimate resources: Visit ACA’s Know My Debt website for free, transparent information on how to navigate the credit system without risking a federal fraud charge.

ACA is encouraged by the FTC’s consumer alert addressing concerns with online influencers’ false solutions for credit repair.

“Unfortunately, there are individuals taking advantage of the system that protects true victims, and these refinements can ensure there are resources to help those truly harmed and enhance safeguards to ensure non-victims don’t abuse the system,” Purcell said in the letter to the FTC. “The FTC has a central role to play in restoring trust in the process.”

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