The Curse of Identity Theft: What are the Pitfalls and Consequences?
Do you think that identity theft or fraud is something that only happens to others? You’d better think again! This is because your risk of becoming the next victim of identity theft is rapidly growing. You may read statistics on identity theft and then think about how it affects you. It is worth noting that identity theft and fraud have consequences and pitfalls beyond the loss of financial data as well as personal information.
Did you know that identity theft can take plenty of time and financial resources to resolve? Also, keep in mind that it may bring emotional upheaval and distress. Note that from stolen funds and account takeovers to crippling social media hacks, it is no secret that identity theft has now become a big threat to our daily lives, with numbers continuing to increase as the world becomes more digitalized.
Also, you should know that crimes involving identity fraud and theft can be quite difficult to resolve. This is because victims might not even know or realize that someone has committed a crime until long after that event.
Did you know that the emotional and mental stress can be quite significant too? This is because your good name, reputation, and credit may take a huge hit, taking many years to fix.
Here are some important consequences and pitfalls of identity theft.
You should know that many employers now regularly consider credit history when evaluating and assessing job candidates. Did you know that about 50% of employers review and assess a job candidate’s credit report as a normal part of the overall hiring process? Note that employers might assess credit reports in order to look for any indicators of issues and problems that they would like to avoid in the future.
For example, employers may consider late payments on a credit report as a warning sign that a job candidate isn’t very organized. This is why a credit report pockmarked by identity theft-related mistakes or errors may sink your job application.
Did you know that most auto insurers in the country use credit scores in order to set insurance rates? Low credit score may hike your insurance premiums by up to 50%. Keep in mind that insurance companies cannot reject customers simply because of their poor credit scores without telling them.
However, they have the right to use the credit score in order to offer you considerably higher insurance rates without offering any explanation. This is why identity theft victims who struggle to rectify their reports usually pay higher rates on auto insurance.
There is no doubt that identity fraud and theft can have a considerable impact on your credit report and history. For example, if a fraudster or thief uses your current credit or opens a new account, it will likely leave a trail of missed payments or debt on your credit report.
According to the IRS, tax return identity theft has been rapidly escalating in recent years. The inspector general of the Treasury Department stated that identity theft affects more than a million taxpayers on a yearly basis.
This is why the IRS stepped up its various anti-ID theft efforts. However, this means that the process has slowed down tax refunds for a lot of legitimate taxpayers in the US.
If you are a victim, you might not expect the police or law enforcement officials to arrest you. Unfortunately, depending on the crimes an individual committed using your stolen identity, in some cases, you might need to establish that you didn’t violate the law.
For example, if an identity thief is arrested by the police and uses your name during booking, then you may end up with an unnecessary criminal record. Did you know that innocent individuals have often been arrested during normal traffic stops because of identity theft? This is how identity theft could get you in serious trouble with the law.
As a result, you might get implicated in a felony or crime that you weren’t involved in with no choice but to deal with all the ramifications.
You can minimize the risk of identity theft by safeguarding your Social Security Number, using strong passwords, and shredding sensitive financial documents. You can use GuardCard to secure your credit card information. It is the premier RFID and NFC blocking card that will fit easily in your wallet.