Identity theft happens a lot – and I mean a lot … we’re talking about nine million American victims every year. But have you ever thought about why it is so common? What do these crooks do with all that personal information anyway? Lots of different things, here are a few:
**They commit credit card fraud.
With a credit card in hand, with your name and address attached to it, they can charge as much as they want and never pay it off. When they default on their bills, it is your credit rating that takes a hit, and it’s you who has to hear from the collection agencies over and over.
If they don’t want to go through the trouble of creating a new account, they may just charge up your existing account – after changing the billing address on it, so you won’t know unless you regularly check your statements online or read your credit report. Or, if you have an identity theft protection plan.
**They get free utilities.
Opening an account in your name is a great way to save on telephone, Internet, electric, gas and cable service – especially if the plan is to relocate every couple of months. However, such theft has been known to go on for years, simply because the victim wasn’t paying attention, and the utility provider was not swift with recovering lost income.
**They get discounted banking service.
Using your information, they get loans that they never have to pay back, checking accounts using counterfeit checks, cash advances on credit cards tied to you – and more. Again, your credit takes the hit, and you could find yourself thousands of dollars in the hole while the thief enjoys his new yacht.
**They make “you†commit federal crimes.
Making fake IDs to cross the border, filing for government benefits you qualify for and even taking your tax refunds, and sometimes claiming fake dependents to get more money – all in a day’s work for the right identity thief. They can even use your Social Security number to gain employment or medical car. And if they commit a major crime, they can have it pinned to you, by confessing your name and then not appearing for trial.
**They buy things with your credit or funds.
Yes, material things are a huge desire of many identity thieves whether its a car, big screen TV, or an Apple Iphone and if they can’t use your funds they will certainly use your credit. But don’t expect them to make those monthly payments or improve your credit score.
An identity thief can make a pretty good life out of pretending to be you – and likely many others simultaneously. Sadly, the results are exactly opposite for you. And though the outlook isn’t quite so rosy for the thief when he faces jail time, fines and other punishment it is unfortunately far to rare that they are caught and convicted. An identity theft protection policy can help protect you from becoming a victim of such crimes – and if such a crime does occur it can assist in the process of restoring your identity and occasionally in justice being served.