Identity Theft and Your Credit History
Identity theft is a growing problem that has left many unsuspecting people with huge bills and black marks on their credit history. There are many ways identity thieves attack. Some of them have taken advantage of the growing popularity of online shopping. They create clone web sites that look just like those of reputable stores such as Amazon.com and use them to trick you into entering your personal information so they can misuse it. Others skulk through neighborhoods on trash day to see if they can find bills and other documents with people's personal information on them. Some of these criminals have even used street crime as a vehicle for stealing people's identity, snatching purses and lifting wallets not to get at the cash, but to take credit cards, driver's licenses, and other identity documents.
The first sign of an identity thief's actions is typically a bounced check or declined credit card when you know you have enough money to cover the purchase. When you inquire, you discover that your bank account has been drained and your credit cards have been maxed out. Suddenly you no longer have money to pay for the ordinary expenses of living, and you're struggling to get your life and your good name back.
But the long-term damage of an identity thief's crimes can be far more destructive than simply having money stolen. Even after you've closed all the compromised accounts and disputed the fraudulent charges with your credit card companies, the black marks on your credit record can restrict your options for months or years to come. Especially if the identity thief opened fraudulent credit card accounts or other types of credit in your name, it is very likely that their failure to pay on those accounts will appear on your credit report. Even if you have subsequently been able to prove that the accounts were opened fraudulently in your name without your knowledge and that you do not owe the debt, the notations that the loans were not paid on time may not necessarily be removed from your credit report. As a result, you may have credit applications rejected for years afterward, and if you are able to gain credit, you may have to pay a much higher interest rate.
If you are the victim of identity theft (or even if you have reason to believe you might be), you need to request a copy of your credit report from each of the three credit reporting agencies. Look through it very carefully for any accounts you do not recognize as your own, especially accounts that are listed as being delinquent. Circle each of the suspicious accounts on your credit report, then send a copy of it back to the appropriate credit reporting agency, letting them know that you did not open this account. Also contact each of the lenders that hold these loans and let them know that you did not open these accounts. It may be possible to gain copies of the forged signatures used by the thief to open those accounts, which should also be shared with the appropriate law enforcement agencies in hopes of capturing and convicting the identity thief. The faster you act when you discover that you have been the target of an identity thief, the likelier it is that the thief will be caught and that you will be able to keep your credit history unblemished. Make sure to keep records of all the steps you have taken in response to having your identity stolen, since it will not only document your efforts to show you have been serious about your response to it (in case a creditor tries to come back at you for being inadequately diligent), but will also help law enforcement suggest other steps that could be taken to protect you.
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