How Identity Theft Affects Your Life

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How Identity Theft Affects Your Life

Because your identity is central to everything you do, ID theft can reach into all areas of your life and can affect you for years, perhaps for the rest of your life. It depends on what information was stolen, how it was used, and how quickly and thoroughly you have responded to it. Here are some major areas of life that are tainted when you become a victim of ID theft:

Your credit is harmed

Your credit will probably be harmed because thieves will use your credit to buy what they want without intending to pay it back. Victims often don’t realize that their identity has been stolen until they attempt to buy a home or car. By this point, their credit can be seriously damaged. There may be collections out on them, and they may be unable to buy anything on credit for quite a while. Even when it seems your credit has been cleared, there may still be lingering crimes that will affect it later.

You must spend a lot of time talking with law enforcement

Dealing with ID theft after it has occurred can take a lot of time, depending on the severity. In some cases, you have to work with law enforcement repeatedly in order to clear up your criminal record. They may not always be nice to you. In some cases, you can be arrested for a thief’s crimes, and you can sit in jail until it is straightened out.

Your insurance and medical care may be compromised

An ID theft may use your identity to get medical care. This can leave behind large medical bills and false diagnoses and drive up your health insurance rates. Also, the thief’s medical history can be merged with yours, which can raise your insurance premiums and result in incorrect diagnoses and treatments.

You may need to change your name

Your name may be associated with the ID thief for many years to come. This is why some victims of extensive ID crimes resort to changing their names. Changing your name carries with it a whole new set of paperwork for such tasks as getting a driver’s license and changing your W2 forms.

It can hurt your ability to get a job

Some jobs require security clearances, credit checks (this is getting more and more common), or a clean police record. If someone else has stolen your identity and committed crimes in your name, all of these can be compromised.

You may need to declare bankruptcy

If your credit is damaged and recovery is taking a long time, you may consider declaring bankruptcy to get creditors off your back.

You have to prove yourself over and over

Any company that was scammed in your name will contact you for payment, sometimes over and over. You will have to explain yourself to every one of them, maybe more than once. For some victims, recovering from ID theft becomes a full-time job.