Beware. Identity Theft Can Hurt You In Many Ways

When someone steals your identity, it’s a singular type of betrayal. Identity theft can touch every aspect of your life – your finances, your medical records, and even your freedom. Yet despite banks, online merchants, and brick-and-mortar stores extolling their security measures, the reality is that identity theft is on the rise.

More than 13 million people fall victim to identity theft each year, in no small part due to massive data breaches. In 2017 alone (the last year for which statistics are available), more than 14 million credit card numbers and 158 million Social Security numbers were exposed. In the three months it takes most people to realize they’ve been victimized, the harm accumulates.

As shocking as it is to first learn that you’ve been a victim of identity theft, it can be even more surprising to realize that the repercussions can last for years. According to consumer attorney Sergei Lemberg, “For my clients, identity theft has a ripple effect that can impact a person’s ability to obtain loans, jobs, and even housing.”

A study by the Identity Theft Resource Center echoes the experiences of Lemberg’s clients. A year after learning about their stolen identities, a quarter of victims reported having to ask friends and family members for loans, and one in five had to take time off from work. Fully 15 percent were forced to move, and the same percentage ended up selling their possessions to help pay for living expenses.

Identity theft can take many forms, ranging from posers who set up social media accounts in your name to criminals who claim to be you when they’re arrested. However, the most insidious form of identity theft is financial. “Credit card fraud is by far the most common,” said Lemberg. “Fraudsters can open up accounts in your name, steal credit cards from your mailbox, or skim your credit card information at a point of sale.”

When that happens, it’s only a matter of time before debt collectors come calling. According to Lemberg, that’s often a victim’s first clue that their identity has been stolen. “Once a collector contacts you, time is of the essence,” he said. “It’s critical to submit a report with IdentityTheft.gov.” With your identity theft report in hand, you can then relay the information to debt collectors, credit bureaus, creditors, and relevant government agencies.

While that theoretically should stop the debt collection calls, the reality is that debt bundles bounce around over time to different collection agencies. You may still be dealing with identity theft-related collection calls, letters, and even lawsuits years after the fact. If that happens, you do have an avenue of redress. “The Fair Debt Collection Practices Act makes it illegal for collectors to come after you for debt that you are not legally responsible to pay,” said Lemberg. “If they try, you can sue them and recover up to $1,000.”

While important, that is small consolation to the millions of Americans who have been victimized by identity theft and who are forced to expend time, energy, and money to reclaim their good names.