Dangers of Identity Theft

The dangers of identity theft are real. Congress is struggling to find an answer for how to protect identities while still preserving privacy. Identity theft laws are limited. It is up to you to educate yourself and others on identity theft prevention.

Identity theft is very expensive. It may take years and hundreds or even thousands of dollars to resolve the issues that identity theft causes. The legal costs alone can be tremendous.

• What would you do if you lost your current job because a routine credit report screen came up looking very ugly?

• What if you couldn’t get a new job for the same reason?

• What if you couldn’t buy a new home or go to school because bankruptcy had been filed in your name?

• What if your car was repossessed or your home listed for foreclosure?

• What would you do if you were arrested mistakenly for crimes that were committed under your name?

• What if you got a letter from the IRS saying you were being audited because you paid no taxes on your income, for a job you know nothing about?

• What if you were pulled over for a routine traffic stop and the officer handcuffed you, saying there was a warrant out for your arrest for drug trafficking charges?

• What would you do? Who would you call? How would you get started? What would it cost in time and money?

The dangers of identity theft are real. Thieves can harm you in an endless number of ways

• They can cause you to lose your job.

• They can acquire a job in your name.

• They can obtain telephone calling cards in your name.

• They can open bank accounts in your name.

• They can bounce checks without your knowledge.

• They may make unauthorized withdrawals from your bank accounts. (They may even drain your bank account without you realizing it).

• They can charge thousands of dollars in debts under your name and then file for bankruptcy.

• They can take out loans in your name, whether personal or business related.

• They can change the mailing address on your credit card accounts and run up bills without you realizing it.

• They can open new credit card accounts in your name, charge up bills and then fail to pay them. These delinquencies will be reported under your name on your credit report.

• They can acquire professional licensing and operate under your name.

• They can destroy your reputation and good name.

• They can prevent you or your children from attending school.

• They can cause you to lose your home.

• They can steal your life savings and something even more valuable…your time, as you struggle to set things right.

• They can file bankruptcy under your name, which can ruin your credit for 10 years.

• They can commit a crime and cause you to go to jail instead of them.

It will take you, on average, 600 frustrating hours to try to clean up the mess an identity thief causes. If you work a 40-hour week, that’s the equivalent of not working for 15 weeks, or about 3 ½ months. Meanwhile, how are you paying your bills and taking care of your family? Think about this: when can you take care of those issues? The organizations you have to work with to restore your identity are only working during normal working hours! Think your employer won’t notice your lack of productivity and reprimand you for it?

Identity theft can be extraordinarily damaging. Look at these examples:

• Phillip A. Cummings plead guilty in 2004 to stealing more than 30,000 credit histories in a two-year time frame. Cummings worked for a communications company that provided customers access to the three major credit bureaus. He obtained confidential passwords and subscriber codes. The losses resulting from his actions exceeded $11 million dollars.

• In 2003, a man using a false identity was able to obtain more than 100 credit reports using stolen names and social security numbers. Your credit report lists all of your credit cards, loans and other information.

• In September of 2004, the U.S. District Court of Eastern Michigan charged Richard Burley with conspiracy charges related to an identity theft ring that made more than $2 million in profits.

The stories go on and on. Identity thieves are easily accessing and obtaining the data necessary to steal information from ordinary citizens just like you. Identity theft is expensive. Identity theft protection is not.

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