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Identity thieves have graduated to a whole new level of greed. It’s actually worse than credit card scams. Several victims of identity theft have found themselves blacklisted by various credit reference bureaus over unpaid payday loans. Despite the fact that one can appeal for an investigation, the process is costly and tedious.

Here are some true stories of victims who unfairly suffered for payday loan debts incurred by identity thieves.

  1. Karen Milligan, Chicago, IL

Karen Milligan felt puzzled when she received a disturbing call from a Texas-based payday loan creditor. The caller was following up payments for an overdue $1,000 loan. Within a short time, her colleagues received similar phone calls from the same payday loan lender.

The payday loan lender also demanded a 400 percent interest rate.

After contacting the police, investigations revealed that a former contract worker intentionally stole personal information belonging to 2,100 AT&T employees. The identity thief borrowed numerous payday loans amounting to $70,000 dollars.

  1. Samantha, Virginia

Samantha almost fell victim to a dubious online-based payday loan lender in October 2011. Her ordeal began when she threw caution to the wind and applied for an online payday loan. Virginia federal laws prohibit online-based payday loan businesses due to their unethical interest rates and shady identities. The online payday lender called 1-min-payday-loan instantly submitted Samantha’s personal details to unknown creditors all over America.

It took the intervention of Brian Krebs, a passionate cybersecurity expert to track down the source of stolen data. 1-min-payday-loan tricked victims into providing their names, driver’s license data, physical addresses, and social security numbers. The site owners sold this illegally collected information to Usearching. Hackers pay as little as $20 to get genuine personal information that’s used to apply for online payday loans.

Crooks who couldn’t outrun the law

In 2017, a gang of six Vodafone employees implemented an elaborate scheme of stealing customer’s private banking information. Whenever a customer provided personal information in order to obtain an upgrade, the customer care agents would press the “Print Screen” option on their computer. This captured the client’s information in a screenshot, which the gang downloaded for identity theft.

The crooks, also known as, “Vodafone Gang” stole confidential financial information belonging to 70 victims. The gang ruthlessly applied for many online payday loans and left their victims penniless. Police detectives traced three frequently used telephone numbers and IP addresses to two gang members.

Are you a victim of identity theft? Follow these guidelines

  • Report any suspicious credit card or bank account transactions immediately.
  • Download all your credit reports. You’ll use this as evidence in court.
  • Place fraud alerts on all your credit cards.
  • Notify the Social Security Administration about your identity theft.
  • Go to the DMV and request for a new driving license number.


Ensure you use strong passwords to protect files containing your employees’ personal details. Avoid borrowing loans from online-based payday loan lenders that resemble phishing sites. Always use a strong computer antivirus software to protect your computer from malicious hackers.

Did you know that National Payday Loan Relief offers a free debt consultation service? Book your appointment today!



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