Identity theft encompasses a variety of crimes, from stealing someone's credit card number to opening accounts in the victim's name. About 15 percent of victims report that their identities were stolen for purposes other than obtaining credit, such as to get government documents, commit tax fraud, or mislead police. It's relatively common, for example, for someone to give a phony name and Social Security number when arrested or stopped for a traffic violation.
Thieves tend to do the most damage when they can take over your identity wholesale. By pretending to be you, they can open up credit card accounts, get an auto loan, be treated at a hospital, or rent an apartment. When the bills are due, they don't pay - and those delinquencies, charge-offs, collections, repossessions, evictions, and judgments wind up on your credit report, sending your credit score into the basement.
This kind of "new account" theft costs, on average, $10,000 per victim and makes up nearly 70 percent of the costs incurred by businesses and financial institutions. The out-of-pocket expenses for consumers tend to be higher as well - $1,200 compared to the average $500 when all types of identity theft are considered. The FTC's estimate of the time that consumers spend clearing up problems - 30 hours on average - was decried by many identity theft experts as far too low. The Identity Theft Resource Center said that many victims spend 300 to 600 hours dealing with the various problems that identity thieves cause.
Often, the biggest time-consumer is trying to get fraudulent accounts expunged from credit reports. Many victims complain they get the runaround from credit bureaus. The bureaus say the problem is lenders, who continue to report account information to the bureaus even after they've been told the accounts might be fraudulent. Either way, the ID theft victim gets squeezed.
Here are just a few of the ways your identity can be stolen:
1. You hand your credit card to a waiter in a restaurant. Out of your sight, the waiter runs the card through a small, hand-held device called a skimmer. All of the relevant information contained on your card's black magnetic strip - including your name and the account number - is stored in the device and can be used to create new cards.
2. You fill out an application for credit, an apartment, insurance, or employment. A crooked employee sells the information to a ring of identity thieves or uses it herself to open accounts.
3. Hackers break into online databases where your personal financial data is stored.
4. Thieves pretending to be legitimate lenders - or again, dishonest employees of actual lenders - obtain credit reports from the bureaus and use the information to open new accounts.
Benefits Of A Debt Management Plan
A) Are acceptable to all your creditors.B) Leave you enough money to hand...
benefits-of-a-debt-management-plan.php
A List Of Rights You Have Against Debt Collectors Part 2
1. Falsely stating or implying that the debt collector is b...
a-list-of-rights-you-have-against-debt-collectors-part-2.php
Staying Out Of Debt With The Irs At Tax Time
You may have income not subject to withholding, such as dividends, interest, inc...
staying-out-of-debt-with-the-irs-at-tax-time.php
Benefits Of Working With A Credit Counseling Agency Part 1
A) Detail what you owe.B) Give you an organized picture of your financial situation.C) Provide options that mat...
benefits-of-working-with-a-credit-counseling-agency-part-1.php
A List Of Rights You Have Against Debt Collectors Part 3
1. Collecting any money at all - such as interest, late fees, or any charges other than the principal amount - unless i...
a-list-of-rights-you-have-against-debt-collectors-part-3.php
All Women Need To Read This Understanding The Equal Credit Opportunity Act
One of the main problems with the ECOA is that it is difficult to prove discrimination sin...
all-women-need-to-read-this---understanding-the-equal-credit-opportunity-act.php
Talking With A Creditor 5 Steps Of The Negotiation Cycle
Your bargaining power in this technique is your willingness to repay your creditor the money that you owe him. I...
talking-with-a-creditor---5-steps-of-the-negotiation-cycle.php
4 Ways To Help Boost Your Credit Score
1. Try to Get Positive Accounts Reported: You know that the cre...
4-ways-to-help-boost-your-credit-score.php
Getting A Bad Credit Loan
Getting a bad credit loan is not an easy task but it is a doable one. Often people do not realize that they can actual...
getting-a-bad-credit-loan.php
Filing For Bankruptcy Which Plan Is Right For You
Filing a Chapter 7 bankruptcy can mean you have ...
filing-for-bankruptcy---which-plan-is-right-for-you.php
It's Tough To Save Money When You Are Already Broke But You Can Do It
You are probably thinking at this very moment: ...
it's-tough-to-save-money-when-you-are-already-broke-but-you-can-do-it.php
Are You A High Risk Or Low Risk Credit Applicant Understanding Your Fica Score
Credit scoring uses your credit history to evaluate the likelihood of your lo...
are-you-a-high-risk-or-low-risk-credit-applicant---understanding-your-fica-score.php
Ways To Get Out Of Debt & Save Money Part 1
Understand that there are monthly expenditures that you may not be able to change immediately, for example:...
ways-to-get-out-of-debt-&-save-money-part-1.php
How To Build Credit In Your Own Name After A Divorce
Getting credit in your own name is also an excellent strategy for repairing you...
how-to-build-credit-in-your-own-name-after-a-divorce.php
Cleaning Up Your Credit Without Paying
This process, as outlined in the FDCPA, is quite di...
cleaning-up-your-credit-without-paying.php
Financial Records Create An Effective Filing System
• Banking records (including checking and savin...
financial-records---create-an-effective-filing-system.php
Resourcesother
...
resourcesother.php
Ways To Get Out Of Debt & Save Money Part 2
Once It's in Savings, Leave It There: A good...
ways-to-get-out-of-debt-&-save-money-part-2.php
The Benefits Of Keeping An Open Checking Account
A savings or money market account, too, will impro...
the-benefits-of-keeping-an-open-checking-account.php
Whats The Best Time To Negotiate With Creditors
If your credit is already shot, at other times, it's often more advantageous to negotiate with creditors after ...
whats-the-best-time-to-negotiate-with-creditors.php
Saving Money And Becoming Debt Free Requires Deep Changes
Once you get to the point where you believe that budgeting and savin...
saving-money-and-becoming-debt-free-requires-deep-changes.php
Benefits Of Working With A Credit Counseling Agency Part 2
A good credit counselor offers solutions with your future goals in focus. A solution that works best for yo...
benefits-of-working-with-a-credit-counseling-agency-part-2.php
What To Do When There Is A Bank Error In Credit Reporting
Credit reporting is an important tool that banks use to ensure they get paid. Bank...
what-to-do-when-there-is-a-bank-error-in-credit-reporting.php
The Importance Of Keeping Good Financial Records
Personally speaking, I'm pleased to be able to say that I can fin...
the-importance-of-keeping-good-financial-records.php
The Shocking Truth Behind Credit Report Inaccuracies
According to a number of consumers groups in the United States, many credit reports are filled...
the-shocking-truth-behind-credit-report-inaccuracies.php
Innovis The Credit Report You've Probably Never Heard Of
As recently as 2003, Innovis denied that it was actually in the credit-reporting business. The...
innovis---the-credit-report-you've-probably-never-heard-of.php
Applying For A Credit Card Check Out These 5 Comparison Shopping Tips
Here's what you should look for in a credit card:...
applying-for-a-credit-card---check-out-these-5-comparison-shopping-tips.php
How Being Frugal Can Help You Gain Financial Independence
Being a cheapskate doesn't mean you can't enjoy life; it just means you enjoy life while making a conscious effor...
how-being-frugal-can-help-you-gain-financial-independence.php
8 Solid Tips When Applying For Credit Cards
1. Be consistent with the name you use. Use your ...
8-solid-tips-when-applying-for-credit-cards.php
5 Questions You Must Ask A Credit Counseling Service Before Deciding
Credit counseling is not a good option if you're current on your bills and able to pay more than the minimums. Cre...
5-questions-you-must-ask-a-credit-counseling-service-before-deciding.php
Relationships And Money Research Your Partners Debts Before Making Big Choices
Understand that even though you may be living off o...
relationships-and-money---research-your-partners-debts-before-making-big-choices.php
Learn How To Have Your Student Loans Canceled
The student loan scheme is quite complex, depending on the type of lo...
learn-how-to-have-your-student-loans-canceled.php
Ways To Get Out Of Debt & Save Money Part 3
If you can, select a certain percentage of your income, for example 20% of your monthly net inco...
ways-to-get-out-of-debt-&-save-money-part-3.php
What Are Rapid Rescoring Services How Can They Help My Credit
1. They can't deal with you directly as a consumer - Rapid rescoring is typically offere...
what-are-rapid-rescoring-services-how-can-they-help-my-credit.php
Why Do So Many Adults Have A Hard Time Managing Their Money
Remember back in high school when you were learning calculus...
why-do-so-many-adults-have-a-hard-time-managing-their-money.php
Myth Closing Credit Accounts Will Help Your Score
Of course, if you think about it, what's kept yo...
myth---closing-credit-accounts-will-help-your-score.php
Are You Unemployed Learn The Smart Way To Utilize Your Credit & Your Cash
Prospective employers often pull a credit report as part of the employment process, so to ...
are-you-unemployed---learn-the-smart-way-to-utilize-your-credit-&-your-cash.php
Disputing With Credit Bureaus Know Your Rights
The FCRA provides a list of rights and procedures that will assist you in clearing away negative remarks and reestablish...
disputing-with-credit-bureaus---know-your-rights.php
A List Of Rights You Have Against Debt Collectors Part 1
1. Can't tell third parties, such as your bos...
a-list-of-rights-you-have-against-debt-collectors-part-1.php
Learn How To Read Your Credit Report
These days, bad marks on your credit report can determine whether you land the job you're applyi...
learn-how-to-read-your-credit-report.php
Questionnaire To Determine If Your Future Spouse Is Financially Compatible
1. What is your annual income?2. How much money do you c...
questionnaire-to-determine-if-your-future-spouse-is-financially-compatible.php
