Each year, 9 million Americans fall victim to identity theft, according to the Federal Trade Commission. Once your identity has been taken, criminals can do most anything in your name, such as obtain credit cards, open other accounts--like utilities--and even commit other crimes. If you fall victim, it could take months or years to clear your name. You must stay vigilant in preventing identity theft, or it could ruin your life.
Personal
Your personal life is affected by identity theft. Once your identity is stolen, you might be arrested for a crime you did not commit. For instance, if you are pulled over for a routine traffic stop, and your name and Social Security or driver's license number is associated with a crime, you can be arrested and bear the burden of proving your innocence. If your personal information has been compromised, report it to the local authorities immediately. You will be able to send a copy of the report to creditors and your bank, and maintain one for yourself in the event that you are detained. Ensure that you protect your most sensitive information: Social Security number, mother's maiden name, bank and credit card number and your online account passwords.
Credit
Your credit history can be severely damaged if your identity is stolen. Fraudulent credit cards might be opened in your name, and criminals do not care about paying the bills or maintaining low balances. This could have serious implications on your credit score. Someone with a great credit history can see his credit score sink in just a few months. If this happens, it will be difficult for you to get financing through banks or credit companies.
Financial
If the debt incurred through identity theft is not reported within 60 days, you might be liable for repaying that debt. If this is the case, liens may be placed on your property, and your wages can be garnished until the debt is paid. According to FDIC Regulation E, an electronic funds transfer must be reported within two days to be completely clear of liability, save for the $50 fee. If you wait 60 days, liability is capped at $500. However, if the problem is not reported within 60 days, there is no mandated consumer protection.
Medical
In the worst-case scenario, medical identity theft could result in long-term injury or death (see Reference 3). If your medical identity is compromised, false information might be entered into your records. In other situations, it simply means refusal of insurance coverage, or an increase in your rates. If a pre-existing condition is falsely entered into your records, you might be denied medical insurance.
Future
The effects of identity theft might be long term or short lived depending upon the severity and type of the theft. If you fall victim of identity theft, monitor your credit reports for at least a year after it is resolved.
Use every means necessary to protect yourself from identity theft, such as keep personal information private. Scrutinize your monthly statements, and immediately report any suspicious activity. Also, subscribe to services such as LifeLock. They will work on your behalf to ensure your identity is safe.
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