The first big step in protecting yourself from identity theft is awareness, as we live in a world where it's almost impossible to keep our lives private. What many people do not understand is the fact that banks and credit card companies only monitor your spending habits and purchases, however, they are not protecting you against identity theft. Knowing how your personal information can be used and how you can protect yourself from theft is a big step to keeping yourself safe. Find out more about the serious financial and psychological consequences bellow.
This kind of fraud occurs when a criminal has a driver’s license issued to themselves under another person’s identity. They might use the license to commit traffic violations that end up on your record and you could lose your license even get arrested.
Criminals are able to use your stolen personal information to take over your financial accounts or create their own, which can be very serious and stressful. It can take you months or years to rectify the effects of financial identity theft and it could result in large volumes of debt and a poor credit score.
A fraudster could change your mailing address, diverting it to themselves instead. This allows them to look through all your mail and find out bank details, credit card details and other personal information.
Criminals, illegal immigrants and the jobless use stolen identification and personal details to obtain employment. By using stolen identification, they are able to conceal their real personal history from their employers.
The impersonator assumes your identity to avoid legal punishment. A criminal may give your name when they're arrested, so that their record isn't affected.
A criminal fraudulently enjoys your medical benefits. The scammer obtains your health insurance information and uses it to receive care.
Involves scams in which the scammer assumes your identity for a prolonged period. For example, they may apply for jobs using your identity, so that they can pass background checks, or even rent property.
Business or commercial identity theft entails using a company's name to obtain credit or otherwise fraudulently pretend to be that business.
This has obvious negative effects on the business, but the fraud can ripple out and affect others who believe they're interacting with the legitimate business. For example, a fraudster might pose as a business, send a bill to that company's clients and pocket the payments.
Often, but not always, this form of identity theft requires the scammer to obtain a Social Security number (SSN) from a company executive. The fraud may also be executed by obtaining a company computer or infiltrating a company's network. In some cases, the perpetrators of business identity theft are insiders, current employees, or former employees with direct access to operational documentation.
The consequences of identity theft can be quite dire, here are some examples:
First, many victims suffer financial stress. Second, identity theft victims may experience similar emotional effects as victims of violent crimes, ranging from anxiety to emotional volatility. Identity theft victims often show emotions “much the way a trauma survivor would respond or somebody who was a victim of a different kind of crime such as a home invasion or assault”.
Victims often experience emotional effects and exhibit signs of grief similar to depression and heightened anxiety such as loss of confidence in areas where they typically had confidence, sleeplessness, emotional volatility, difficulty eating, self-medicating with alcohol or food, and loss of motivation. Due to identity theft typically emerging as a shock, it has an “assaulting quality” to it. The effects can be life-altering, impacting your health, your emotional well-being and your relationships with others.
