What Can Happen to You as a Victim of Identity Theft, Facts & Figures

Is identity theft really that serious? Thousands of people every year
are victims of this terrible crime. Thieves use your personal
information to commit fraud or other crimes in your name and can cause
significant credit damage. Find out how to protect yourself.

Is identity theft really that serious? Thousands of people every year
are victims of this terrible crime. Thieves use your personal
information to commit fraud or other crimes in your name and can cause
significant credit damage. Identifying information taken without your
permission, such as your Social Security number (SSN), credit card
number, or your drivers' license, can be used to "steal your identity."

The effects of identity theft are much greater than most people suspect.
Victims can spend years trying to re-establish their credit and their
good names. The cost of this process, both financially and emotionally,
is often quite high. But there are options (see below).

Identity theft is a serious crime. The Federal Trade Commission reports
identity theft as its number one source of complaints by consumers. The
average victim pays more than $1,000 repairing the damage and loses an
average of $6,767. A recent study by CBS News claims that a thief steals
someone's identity "every 79 seconds."2 An estimated 750,000 people are
victimized each year.3

How can you tell if you are a victim of identity theft? There are some
clues. First, it's important to always monitor the balances on your
checking, savings, or other financial accounts. Keep an eye out for
unexplained charges or withdrawals made without your permission.
Carefully reading your monthly bank and credit card statements, then
checking the amounts against your check register or other record-keeping
method could catch a thief in the act of assuming your identity and
spending your hard-earned money.

Identity thieves may change the address on one or more of your bills, so
make sure you know when you usually receive specific notices. For
instance, if you receive your credit card statement at the beginning of
the month and it doesn't arrive in the mail, this could signal an
address change by an identity thief. Another clue that comes in the mail
is a credit card for which you didn't apply or a statement for a credit
card that you have never used. Someone may have used your information to
apply for a line of credit.

Also take note if you are getting phone calls from debt collection
agencies, credit departments, or other companies regarding merchandise
or services that you did not purchase. Someone may be acquiring goods
and services in your name.

And finally, when applying for a line of credit, be aware of your credit
standing. If you know you have a good credit rating and get turned down
by a credit card company, this is a red flag that someone else may be
sullying your rating. Even if you don't know your credit score, always
ask why you were declined and verify the reason against your credit report.

Once your identity has been stolen and your credit has been damaged, the
long process of regaining your name and good standing could cost you
more than inconvenience. Victims are unable to qualify for loans, to
purchase houses and cars, and to pay for higher education. They may be
refused job opportunities and even be arrested for crimes committed by
the identity thief.

In the meantime, the criminal with your personal information may:

• Go on a shopping spree with your credit or debit card account numbers.
Thieves may also create counterfeit debit cards or checks. Merchandise
can be sold and the criminals walk away with cash.
• Open credit or checking accounts in your name with your SSN and date
of birth. As the bills pile up, your credit report reflects the
delinquent account.
• Have your credit card statements sent to a phony address. Without the
bills as a reference, it may take you a while to realize your account is
being used.
• Take out loans in your name for big purchases, such as a new car.
• Set up telephone or internet service in your name.
• Avoid the responsibilities of debt or an impending eviction by filing
bankruptcy using your SSN.
• Give your name to police when being arrested. If the criminal is
released on bond but fails to appear for the court date, police may
issue an arrest warrant for you.
• If you have need to contact the three main credit bureaus.

Protecting yourself against identity theft takes a little extra time,
but in comparison to the time, effort, and money it takes to reclaim
your name once it has been stolen, the vigilance is well worth it.