Earlier quoted context omitted.
The credit agencies report what has been told to them by BigBank. Once the fraud is detected BigBank should update them that Alice does not in fact have a $10,000 loan with them and it would then be removed from Alice's report. If the loan has been determined to be fraudulent and it has not removed from her credit report, BigBank is victimizing her not the credit agencies.
> then be removed from Alice's report. That's a long process (5+ years sometimes).
If the creditor that reported an account to a credit agency then sends a request to have the account removed it happens right away.