ID theft puts an ugly face on your good name. A con artist who knows your Social Security number, bank account information or other personal details can temporarily become you in order to commit fraud. Fixing the damage could take years. Here's how to reduce your risk.
Your good name and reputation are among your most valuable assets. Unfortunately, criminals know the value of a good name and reputation, too. That's why increasing numbers of con artists are "stealing" identities. These robbers typically start by using theft or deception to learn a person's Social Security number, date of birth or other personal information. Armed with those details, the perpetrators can open credit card accounts, make purchases, take out loans, or make counterfeit checks and ATM cards in your name. In effect, the crook becomes you in order to commit fraud or theft.
Federal and state laws plus banking industry practices may limit your losses from ID theft. For example, under the Truth in Lending Act, if a crook opened a credit card account in your name and ran up thousands of dollars in charges, the most you'd owe is $50—and many creditors will agree to excuse you of all liability. Still, innocent victims are likely to face long hours (and sometimes years) closing tarnished accounts and opening new ones, fixing credit records, and otherwise cleaning up the damage. They also may find themselves being denied loans, jobs and other opportunities because an identity theft ruined their reputation and credit rating.
Consider these examples cited by the Federal Trade Commission (FTC) in congressional testimony:
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A NASA engineer was refused a loan by his bank of 11 years and had to use his retirement funds to finance his son's education.
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A consumer spent three years trying to repair her damaged credit rating and was deprived of the chance to buy what she described as her dream home.
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A department store clerk whose identity had been assumed by a shoplifter spent years unsuccessfully seeking employment in the retail industry.
