What Are the Consequences of ID Theft?
The crime of identity theft involves an person inappropriately using the identity of another to gain unauthorized financial benefits. The person who has been victimized as the result of identity theft will suffer a series of serious and many times costly consequences. The aftereffects of being the victim of identity theft can leave a person in dire straights with a significant debt and a destroyed credit history. The amount of time that is necessary to clean up after identity theft is substantial--and may not always result in all of the aftereffects of the crime being corrected.
Other People Are Reading
-
Damaged Credit Report
-
One of the most significant consequences of ID theft is the damage that is done to a credit history, report and score. Because the ID thief will use a person's identity without regard to credit standing, damage to credit history, report and score will happen in a short period of time. Unless an individual consistently and constantly monitors accounts and credit reports--which most people do not--within just over a month's time the harm to a report is done. The creditors will start reporting the status of accounts that the ID thief has opened or otherwise abused at that juncture, commencing the damage.
Unauthorized Access
-
Another of the serious consequence is unauthorized access to financial accounts. Depending on the type of information an ID thief is able to glean about an individual, the thief may be able to gain access to a number of financial accounts. It is not uncommon for an ID thief to drain a person's bank accounts rapidly and before the victim has even a faint idea that anything is awry.
-
Credit Accounts
-
In addition to making unauthorized use of existing accounts, another common consequences is the opening of new credit accounts and without authorization. Through the typical identify theft scheme, the thief will open a credit account, max it out in no time at all--leaving a person stuck with the bill and the task of challenging the charges and restoring good credit standing.
Other Loans
-
In a similar vein, a consequence of ID theft is obtaining loans and similar extensions of credit in a victim's name without authority. These thieves take out loans, take off with the proceeds. In the alternative, these thieves make financed purchase of different types of products--oftentimes electronics--in a victim's name. The thief takes the goods. The victim is left cleaning up the mess and spending a good deal of time working to get relieved of the debt.
Utility Accounts
-
The thief may open up utility accounts in another individual's name. A common type of such account is one for cellular phone service. As with the other consequences of ID theft, the victim is left holding the bag and facing the need to spend time (and often money) clearing up the aftermath of the crime.
Protecting Your Interests
-
If a person discovers that he or she is the victim of identity theft, prompt action is crucial. Contact must be made with any creditor, financial institution or other type of business with which an identity wrongly is used. These types of entities will provide an affidavit to complete which will commence the process to investigate the complaint.
Contact must be made with law enforcement immediately as well. File a complaint with local police department or sheriff's office.
The three major credit reporting agencies must be notified. Each agency will place a "Fraud Alert" placed on the victim's account. The three major credit bureaus are: Equifax, Experian and Trans Union. You can reach them by phone or via the Internet.
Finally, the victim needs to alert any other credit card company, bank or other financial institution with which he or she dos business that the individual is the victim of identity theft.
The U.S. Federal Trace Commission provides consumers resources and detailed information through its "Fighting Back Against Identity Theft" program. The program is available online at FTC.gov.
-
References
Resources
- Photo Credit Lusi, Everystockphoto.com
