Identity theft is one of the fastest growing crimes in the world today. You’ve worked hard to get and maintain a good credit rating. There are several steps you can take today to ensure that you are protected as much as possible against the crime of identity theft, which can sink your credit rating to negative numbers almost overnight.
It seems like you can hardly watch the TV news or read the daily newspaper anymore without seeing a report of identity theft or seeing the topic of identity theft coming up as a very hot topic. Although identity theft is not a well-known type of crime, it is one of the fastest growing and insidious crimes in the world today.
Let’s look at a typical case of what happens with identity theft. Very simply, someone opens an account, like a Visa or MasterCard, or perhaps at a major department store, using YOUR name, YOUR social security number, YOUR date of birth. This is all information that supposedly, YOU would be the only one that would know, so it appears legitimate. The address is frequently not your address, but with the frequency that people move these days, a different address seldom throws up a red flag. Since you have good credit, the new account is approved, and the new credit card is mailed to “you” at the address provided on the application.
Now what happens? The thief may repeat the process and open 2-3 or even a dozen or more new accounts. Having the cards in hand, the thief goes out and charges those cards to the hilt, purchasing things like a plasma TV, a high-end computer system, top of the line digital camera, even a late model used car, and much more.
A couple of months down the road, you get a call from the collections department with American Express, Citibank Visa, your local department store, and sometimes even ALL of these. They want to know if there is a problem with your new account, since you have not made any payments to date. Huh? In the vast majority of cases, this is your first indication that you have been a victim of identity theft.
It is not a pretty picture. The lender is going to assume that you are just trying to fabricate a story so you can enjoy all the new toys you bought without having to pay for them. And most of those creditors will get fairly hostile with you, and in the meantime, they are more than happy to start reporting your huge delinquency to the credit bureaus so that your previously sterling credit rating starts going to the dogs in a hurry.
The good news is that the error can be resolved … eventually. But it is going to take months and even years to get your credit rating restored to where it was before, as well as a significant amount of your time and possibly even legal fees. You see, those lenders who approved “your” new account don’t want to take responsibility for merchandise that was purchased and will probably never be found again. The ONLY thing they have to allow them to track it down is your social security number and date of birth, so since that is the only thing they have, they hound you like a pit bull. Unfortunately, they also take the attitude of you being guilty until being presented with irrefutable proof that you are innocent and a victim of identity theft.
Do not take a lax attitude about identity theft because it can happen to you, and I can guarantee that it is significantly less fun than a root canal. There are many steps you can take that will help guard you against identity theft, and you are highly encouraged to take those steps as soon as possible.
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