What are the effects of identity theft?

The effects of identity theft include financial losses and emotional duress because fraudsters can commit various crimes like opening new credit lines, withdrawing money from your bank accounts, or taking over your email or social media. You may also face an expensive, time-consuming recovery process.

Common Effects of Identity Theft

• Financial Losses – Victims of identity theft may experience severe financial losses. Fraudsters can create duplicate credit cards or open credit card and loan accounts in your name to make purchases, as well as withdraw money from your bank accounts.

  
  All major credit card networks provide $0 fraud liability protection. As long as you report fraud within a reasonable time frame, you are not held responsible for unauthorized charges. Credit card issuers also monitor purchases for fraudulent activity.

• Emotional Suffering – Identity theft can cause feelings of helplessness, anger, isolation, betrayal, and embarrassment. Fears around safety and financial security are often triggered. Many victims also have to accept the difficult realization that someone they know personally was involved.
• Compromised Accounts – Hackers can “own” your email and other online accounts, which is also known as an account takeover. Email and social media accounts can be used to send spam messages and malicious links to your contact list or to search for sensitive information to blackmail you.
• Damaged Credit – Fraudulent credit card and loan accounts can be used to make unauthorized purchases, leading to missed payments that can hurt your credit score.
• Criminal Record – Identity thieves sometimes use other people’s names or personal information when they are arrested or accused of a crime. This can undeservedly create a criminal record in your name.
• Tax Issues – With access to your name, Social Security number, and birthday, thieves can file taxes in your name in order to claim a sizable refund. When you file your taxes, the legitimate return is then flagged as fraudulent.
• Time Consuming Recovery – Recovering from identify theft can take months. You will need to dispute any erroneous accounts and purchases with your financial institutions as well as with all three of the major credit bureaus. You will also need to secure all of your online accounts. Additionally, you may have to cancel your credit and debit cards, close your accounts, and get replacements.

  
  Depending on the type of crime, there may be other steps you must take to fully rectify the financial and personal issues caused by identity theft. Complex fraud cases may also require legal advice, which increases the length of the recovery process as well as the cost.

  Learn more about how to protect yourself from identity theft and the steps you should take if it has already affected you.