How could Identity Theft affect you?

The sad fact is that anyone, anywhere could be affected by identity theft, and the damages to your finances and good credit name could be extensive.  There are many ways in which identity thieves can use your personal information to commit fraudulent crimes, and it can be difficult and time consuming clearing your name and recouping any losses.

Credit Card Fraud
This is one of the most prevalent types of identity theft fraud, and affects millions of consumers around the world every year.  Most cases involve identity thieves hijacking existing card accounts to run up fraudulent charges, but thieves can also get hold of your personal information to use to open brand new credit card accounts in your name, leaving you liable for any charges and fees.
Many credit card providers are taking steps to combat this type of fraud, with dedicated fraud detection teams and instant notification for customers if any suspicious activity has taken place on their account, and some providers are also offering zero-liability coverage for their credit products, which means that if you do become a victim of this type of crime you will not have to pay anything to get your good name restored.

Social Security Number Fraud
Your social security number could be used by identity thieves for a number of reasons, but most commonly they are used to disguise the identity of illegal immigrants so that they can apply for jobs and pay taxes without being discovered by the authorities.  Multiply people could be using the same SSN at once, and this will mean that the victim will have a whole host of different earnings and taxes recorded on their Social Security Statement Form (SSA-7005), which could interfere with their own taxes and earnings, and make it difficult for them to claim any benefits they would normally be entitled to.