Identity theft occurs when criminals obtain personal information, such as names, addresses, account numbers, passwords or Social Security numbers, and assume them as their own. Most often they use this knowledge to either run up charges on existing credit or open new credit in victims’ names. However, they can also use their assumed identities to help them get away with crimes, obtain medical care or thwart immigration laws. While identity theft can be devastating to an individual, it can be even worse for a family, especially if the victim is the primary breadwinner.
Approximately 8 – 10 million Americans fall victim to identity theft each year.
Time and Money Expenditure
It can be months or even years before you realize you’ve been a victim of identity theft. Sometimes this knowledge will only come with the receipt of a collection notice or possibly an arrest warrant. Resolving the situation is not a simple fix. It sometimes requires legal representation, which as we all know doesn’t come cheap. It can also take a lot of time, which can mean lost wages. The Federal Trade Commission estimates that victims of account fraud spend, on average, 60 hours restoring their identities. Other studies have put the figure closer to 200 hours. With out a doubt the lower number is due to the rampant fraudulent charges on existing credit cards, cards you already own, that often take little time to correct. When a thief gets a new credit card in your name the process becomes much more lengthy as is the time to discovery as it is difficult to check a statement for an account you don’t even know exists.
Depending on the scope of the crime many victims have responded with an answer of unknown or too much to count when asked how many hours it took to restore their identities. These are often the victims displayed in the media after years or decades battling with red tape bureaucracy to get their lives back on track. These are also the examples that prove how important identity theft insurance is to any identity protection plan. The more severe the case the more important the insurance policy or service guarantee becomes in terms of protecting your finances or credit and in restoring your life.
Credit Damage
You’d best believe that those delinquent payments the identity thief is responsible for will do a number on your credit card rating and credit score. This will affect both you and your family if you want to buy a home or car or make another major purchase. Until you get your credit cleaned up, it’s unlikely that you will qualify for a loan, even if you go joint with your spouse – well unless your spouse is independently wealthy and has excellent credit. Bad credit can also prevent you from getting certain jobs, especially with financial institutions or the federal government, with the entire family suffering the consequences. This is why credit protection is important.
Stress
Probably the most harmful way that identity theft affects a family is by adding a huge amount of stress to the parents’ lives. (The tense atmosphere will undoubtedly affect the children too.) First, there is the shock of learning that you’ve been victimized. Then there are the headaches that come with working with law enforcement, lawyers, individual creditors and the credit bureaus to resolve the situation. This pressure can cause harm to even the most secure of marriages and may lead to the dissolution of an already shaky one. After all, money is the number one thing that couples argue about, according to well-known Psychotherapist Paula Hall.
Now that you know the negative effects this crime can have, it’s time to think a bit about prevention. Saving yourself from this crime before it happens to you is definitely the way to go. An identity theft protection service can be the best way to do it. Not only can you purchase a plan for yourself, but you can protect your spouse and even your children as well. Be sure to read our reviews on LifeLock, TrustedID and Identity Guard and decide what’s best for your family from all of the options available.