Question

Aside from the financial losses, are there other negative impacts that a victim of identity theft might encounter? Please form an opinion and support your opinion with facts from the readings.

Answer 1

Aside from the financial losses, are there other negative impacts that a victim of identity theft might encounter:-

Unpaid bills leave a big blemish on your credit report, which can have far-reaching financial implications. It might prevent you from buying a home,

example:-

But the impact of identity theft can spread much further and wider than money. Today,we are going to examine the radioactive byproducts of having your identity stolen.

• Leave You With a Criminal Record/Get You Arrested:-  If a criminal is arrested and uses your name or your stolen driver’s license during booking, you could end up with a criminal record. Innocent people have been arrested during routine traffic stops and in front of their children, and some have even been thrown in jail for murder allegations.  

• . Impact Your Social Security Income Credits:- In a similar way, SSN-only imposters pay into the Social Security system, and build up earnings credits that can theoretically be used to draw out Social Security payments later in the life. Rarely are SSN-only imposters able to pull off that caper, but earnings erroneously credited to an SSN can cause chaos when the rightful SSN holder tries to apply for benefits.

• Get You a Surprise Tax Bill:- Identity theft isn’t just for stealing money. One form of ID theft known as SSN-only ID theft involves using a victim’s Social Security number in job applications, generally to fulfill government residency status requirements.

• Legal and Credit Troubles:- Some incidents of identity theft go beyond charges made to existing accounts in your name. Thieves may open new accounts using your personal identifiers, such as your Social Security number, your address and your name. If you’re unaware of this activity and these debts go unpaid — which they invariably do — the lender might sue you for the balance you “owe.” You can fight the lawsuit and you may win if you can establish that you're a victim of identity theft, but the battle will run up legal costs.

• Mortgage Fraud:-     Mortgage Fraud occurs when a borrower, broker or an appraiser lies about information on the application for a mortgage loan. They may do this in order to get approved for a bigger loan or just to get the loan approved. During the mortgage crisis, Experian estimated that first-party fraud—like loan stacking—may have accounted for more than 25% of all consumer credit charge-offs in 2009. After the housing crisis, more stringent approvals were put in place.