Identity Theft

Identity Theft Credit Problems

Identity theft is legally defined as the deliberate assumption of another person's identity. With information like Driver's License numbers, Social Security Numbers, account and other personal information, unsavory characters apply for credit cards or mortgages, buy a car, or withdraw savings or checking account balances. Some even go so far as to commit crimes under false names.

It is important to note that identity theft is different from "financial fraud". In cases of financial fraud, the criminal has stolen your credit card, account number or check book to make purchases. In this case, the perpetrator is not "assuming your identity" under the legal definition.

While these two types of fraud are legally separate, the FTC (the agency regulating credit reporting) considers these to be in the same category. In a recent report, the FTC estimated that both types of fraud cost businesses $27.6 billion and consumers $5 billion each year.

Many identity theft victims are not even aware there is a problem until they apply for a mortgage or try to buy a new car. Then it is revealed that their credit score has suffered at the hands of unscrupulous individuals. InsideBadCredit.com encourages everyone to check their credit report for fraudulent activity on a regular basis. (Learn About Preventing Identity Theft).

If you suspect that you have been a victim of either financial fraud or identity theft, it is important to contact all of your creditors and the three major credit reporting agencies as quickly as possible. Preventing damage to your credit score is key; however, if it is too late, steps can be taken to correct the problem. Contacting credit agencies and lenders to prove you are a victim can be time consuming. Many have found the services of professional credit specialists helpful in taking care of this legwork.