Loan taken out in my name in an investment scam: what to do

Updated on November 9, 2026 · 4 min read

In short: when your savings run out, the scam does not always end. Some “advisors” convince you to take out a loan to keep “investing”, or they apply for it in your name if they have remote access to your computer. The money lands in your account, leaves for the scammers and the debt stays with you. If this has happened to you, tell the lender and your bank today.

How it happens

There are two ways, and telling them apart matters a great deal:

They convince you. The advisor tells you the loan pays for itself from the profits, that it is “leverage” or that you can repay it in days. They even dictate what to answer: “say it is to redo the kitchen”.

They apply without your knowledge. With AnyDesk or a similar program, they use your details and your online banking. Sometimes they tell you they are “setting up the account”. You find out when you see the deposit or the first instalment.

The decisions of the UK Financial Ombudsman Service describe very similar cases. In one of them, a woman sees an ad on social media, a “mentor” contacts her, she installs a remote access program and several loans appear in her name, one of 20,000 pounds. The money passes through another account of hers and ends up with the scammers. The ombudsman concluded that she had not signed the contract: it ordered the interest and charges removed and the loan deleted from her record. But she had to repay the capital, because she knew it was a loan when she forwarded the money.

Do I have to pay it back?

It depends on your country and on what happened. There is no general answer, and this article is not legal advice:

• If you applied for it yourself, even if you were deceived, the lender will normally keep claiming it from you. Sometimes there may be room if it was granted without checking whether you could afford it. Ask a lawyer or a consumer association to review it.
• If it was applied for without your knowledge, say so clearly and in writing. Lenders usually ask whether you knew about the loan and whether you benefited from the money. In another UK decision, the victim said she knew nothing; the lender agreed to remove the interest, but not to cancel the debt. The ombudsman found this fair: it understood that she knew about the loan and had forwarded the money.

As you can see, it is not automatic. That is why it is best to tell everything from the start and be exact. If you were told what to answer, explain that too. It is better that you say it than that it comes out later. Always tell the truth. If the amount is significant, ask a lawyer or a consumer association to review your letter before you send it.

What to do today

1. If they have access to your computer, cut it off first: disconnect it from the internet, photograph the program and its connection history if you can, and then uninstall it. Use another device and change your passwords.
2. Call your bank. Block online banking and ask whether any transfer can be stopped.
3. Call the lender and say it is fraud. If you haven’t spent the money yet or it hasn’t left, ask how to return it or cancel the contract. In many countries there is a period in which you can withdraw from a loan: ask about it. Before withdrawing, ask when you would have to return the capital: it is often a short time, so it may not suit you if the money is no longer there.
4. Don’t stop paying on your own. It can bring you late-payment interest, a demand for the whole debt and an entry on credit default registers. Ask in writing for them to suspend collection while they review the case, and if you cannot pay, ask for a payment plan.
5. Check whether there are more. Ask for your credit report: there may be other loans, cards or credit lines.
6. Report it and keep the receipt. The lender will ask for it.
7. Complain if they don’t reply: to the lender’s complaints service and then to the supervisor or the consumer ombudsman in your country.

Watch out for what comes next

Whoever offers to “cancel your debt” or recover the money in exchange for a payment is probably another scam. And don’t take out another loan to pay off the first one, or to release your profits: those profits do not exist.

If it is a relative who is caught up in this, here is how to help them. And if the situation is overwhelming you, talk to someone you trust: this happens to a lot of people, and it is not your fault.

Where this comes from

Our contributors do not deposit money or take out loans. This article is based on public UK decisions and on consumer warnings. Results in other countries may be different.