credit card application online issues

my yearly free credit report tells me that there was a newly opened credit card account issued to a friend's address in my name. I have no idea at all about this. I called the bank to immediately close the account and asked why I was not aware of, and they told me it's applied online. I checked with my friend, she said she did not know of it and has nothing to do with it. Then I called the bank again and asked for a hard copy of application form and trying to see whose signature on there, but bank told me there's no signature, it's online application. I further asked how as I do not see how I could do it online, they wouldn't teach me but insisted that there's a way of doing it. Anyone has any idea how the hell could this happen? How am I going to find out this will not be happening in the future?