Every victim of identity theft eventually asks the same question:

“How did a thief get approved for this account so easily…
when I can’t even get a credit limit increase?”

It’s a fair question.
And the answer is simple, ugly, and unsettling:

Lenders don’t verify identity.
They automate it.
And the automation is terrible.

The front door of the credit system isn’t guarded — it’s propped open.


Lenders Don’t Verify Identity — They Automate It

When a thief applies for credit in your name, they’re not battling a wall of security.
They’re stepping into a glorified vending machine:

  • The app pulls whatever old data the bureau feeds it

  • It runs a cheap set of ID checks

  • It tries to match the identity to a few simple fields

  • And if nothing catastrophic flashes red, the system approves

No human.
No actual scrutiny.
Just another automated routine masquerading as safety.

It’s the same hollow engineering as the Robot Dance — only now it’s happening at the application stage.


Why Lenders Prefer Fast Approvals (Even If They’re Wrong)

This is where the truth comes in:

1. Fast approvals make lenders money

The more accounts they open, the more interest, fees, and data revenue they build.

2. Speed looks good to investors

“Frictionless onboarding” is a selling point.
Accuracy isn’t.

3. Fraud losses are built into their pricing

They know fraud will happen — and they’ve already priced it in.
Approving a thief is a better financial outcome than inconveniencing a real consumer.

4. Manual review slows everything down

And anything that slows the approval conveyor belt is treated like a threat.

The system is built to approve identity thieves faster than it approves real people.


The Application System: Built for Convenience, Not Security

Identity thieves don’t get lucky — they get welcomed.

Here’s what they exploit:

Weak one-time passwords

If a thief steals your phone number through SIM swapping, the lender treats the new phone as “you.”

Outdated databases

If the thief knows your name, address, and SSN, the system can’t tell the difference.

No meaningful device checks

Most lenders never check whether the device belongs to you.

No behavioral analysis

Real identity verification requires noticing strange behavior.
Lenders don’t do that — it slows the process.

Synthetic identity profiles

Thieves can build a fake identity over months.
The system eventually accepts it as “real.”

The “security gate” isn’t a gate at all — it’s a checkbox.


The Human Cost: Fraudulent Accounts That Look Legit

Once a thief slips through, the damage multiplies.

  • Fraudulent accounts get reported as “current”

  • Thieves make payments to keep the fraud invisible

  • Fraudulent car loans and mortgages ride through untouched

  • Credit scores stay steady, masking the crime

  • Victims get dismissed because “everything looks normal”

This is why so many victims feel blindsided:
the fraud doesn’t scream — it behaves.


Why Lenders Blame the Victim After Approving the Thief

This is where the insult gets added to the injury.

Once the fraud is discovered, lenders don’t want to admit:

  • Their system approved a thief

  • Their identity checks failed

  • Their automation let a criminal in

So they say:

“You opened it.”
“You must have authorized it.”
“Nothing appears suspicious.”

They lock the door behind the thief and ask you to justify why you should be let back in.

And then the bureaus back them up with the same automated nonsense that got you here.

Why Even Absurd Applications Get Approved

This is the heart of the problem:

The approval process isn’t checking identity — it’s checking boxes.

Give a system:

  • a name

  • a social

  • an address

  • a date of birth

…and if those line up with whatever data the bureau spit back, the system gives a thumbs-up.

It doesn’t ask:
“Does this make sense?”
“Does this match behavior?”
“Is this physically possible?”
“Could this be fraud?”

It just nods like a robot and moves on to the next application.


What Real Identity Verification Would Look Like

Real verification — the kind that protects people — involves:

  • Device fingerprinting

  • IP and location matching

  • Phone-line ownership checks

  • Cross-database consistency reviews

  • Application metadata analysis

  • Human review when data conflicts

  • Fraud-pattern scoring

  • Address confirmation

  • Identity challenge questions

Not one of these steps is standard in the fast-approval world lenders built.


This Failure Is Also Your Leverage

Here’s the twist:

Every sloppy approval,
every ignored red flag,
every automated mistake
becomes evidence.

When lenders approve thieves and then deny the truth, they create:

  • documentation failures

  • verification failures

  • investigation failures

  • FCRA violations

  • EFTA violations

  • damages

The law doesn’t care that a lender wanted to “move fast.”
The law cares about accuracy and fairness.

When they fail at both, they owe.


You Didn’t Do Anything Wrong

You didn’t miss a warning sign.
You didn’t open the account.
You didn’t authorize anything.
You didn’t cause the fraud.

You’re dealing with a system that was never designed to protect you — only to move applications through as quickly as possible.

I make lenders follow the law.
I hold them accountable when they don’t.
And you don’t pay me unless we win — and that money comes from the companies that broke the rules, not from you.

If you’re ready for the truth to be louder than their automation, I can help.

Martians Celebrate Approval

Michael F. Cardoza, Esq.
Connect with me
U.S. Marine & Consumer Financial Protection Attorney helping victims of ID theft and Credit Reporting errors.
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