What Thieves Do With Your Credit

Even with thorough prevention tactics, your identity can still be stolen. You already know that identity theft is on the rise and that thieves can get your information through dumpster diving or electronic means, but what happens when your identity is stolen? There are many ways for your information to be used for fraudulent or criminal purposes.

Credit card fraud is one of the most common forms of identity theft. Someone with your personal information may open up a credit card in your name, often changing the address so that you are unaware of a bill. They can also do this to an existing credit card, as well as “cloning” your checking or credit cards to use for their purposes or shopping online with your numbers. The unpaid bills will affect your credit report negatively.

 

Your stolen information can be used to create other false accounts as well. Bank accounts, phone numbers, utility bills, loans, medical bills... anything that you may need yourself, someone else can use your name and credit history to get for themselves. When these bills aren't paid off, collection companies will refer to you since your information is on the account.

 

A more nefarious form of identity theft involves a person pretending to be you to the government. Someone can use your social security number to get a job or government benefits or even get identification with your name and information but with their photo. A false tax return can be created, and the impact of tax fraud can have serious consequences for you. If a person is arrested for a crime and have your identifying information, they can give that to the police and then there will be a warrant out for you when they do not show up to the court date.

 

Every action an identity thief makes with your information can have serious consequences for you, ranging from collection bills you have to fight to possible false arrest and a pockmarked credit report that, while fixable, may be a problem if you do not realize it and are declined for important things. Be vigilant about monitoring your credit report and preventing your personal information from being misused.