Ever feel like adulting is hard? Try finding out someone else has been doing it in your name—and applying for loans while they’re at it.
In this publication, we're uncovering a scam that has been making waves and could potentially affect you or someone you know. Let’s dive right in.
Two New York men allegedly stole the identities of 17 people, created full-blown fake profiles for each, and used them to scam over $416,000 in loans, COVID relief funds, and more—with zero intent of paying it back.
How It Worked:
This wasn’t your run-of-the-mill identity theft. It was meticulous and methodical:
- Steal the Data: The scammers got ahold of 17 people’s names and Social Security numbers.
- Build Fake Lives: They used that info to create full identity kits—complete with forged driver’s licenses, bank statements, tax returns, and even email accounts.
- Apply for Loans: With those identities, they opened online accounts with creditors and applied for personal loans ranging from $15,000 to $36,000.
- Cash Out Fast: Once the loans were approved, they received debit cards mailed to addresses under their control and drained the accounts before vanishing.
- COVID Relief Bonus: One of the accused also allegedly used a stolen identity to pocket $52,000 in pandemic-era rent relief.
All told, the fraud raked in approximately $416,000—and not a cent was repaid.
Who Was Targeted:
- Everyday people whose personal info was likely stolen or leaked
- Financial institutions that issued loans based on convincing fake documents
- Government agencies disbursing emergency funds without catching the fraud in time
The scheme spanned from 2022 to 2024, showing just how long a sophisticated identity theft operation can go unnoticed if unchecked.
Real-Life Example:
Brooklyn District Attorney Eric Gonzalez put it bluntly:
“These defendants allegedly perpetrated a sophisticated scam... The health of our banking system depends on honest dealings.”
The accused—Dacson Sears and Raymond Lyles (aka “L.A. Ray”)—were indicted on a slew of charges including identity theft, grand larceny, money laundering, and more. They’ve both been arraigned and are due back in court in August.
Why You Should Care:
This kind of scam isn’t just a corporate crime—it can happen to you. If your identity is stolen:
- Your credit score can be destroyed.
- You may be denied loans, apartments, or jobs.
- You’ll spend months or years cleaning up the mess—often with zero warning it ever happened.
Financial fraud on this scale also costs banks, taxpayers, and government programs millions—money that could be used for legitimate relief or services.
How to Protect Yourself:
• Monitor your credit regularly with services like AnnualCreditReport.com.
• Freeze your credit if you’re not actively applying for loans—it blocks unauthorized activity.
• Review your accounts monthly for unusual activity, no matter how small.
• Report suspicious activity to the FTC and your local police immediately.
• Secure your digital life: Use two-factor authentication and avoid reusing passwords across accounts.
Quick Tips:
Quick Tip #1: Did you know? You’re entitled to one free credit report per week from each bureau through the end of 2026.
Pro Tip: A “credit freeze” is free and one of the most powerful tools against ID theft—use it!
Stay safe, stay informed.
Keywords:
• Identity Theft – When someone uses your personal data to impersonate you for financial gain.
• Credit Freeze – A free tool that blocks access to your credit reports to stop new accounts from being opened.
• COVID Relief Fraud – Scams that exploit pandemic-era aid programs through false applications.
• Synthetic Identity – A fake profile made by combining real and fabricated personal information.
• Grand Larceny – A legal term for stealing property or money over a certain value (varies by state).
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