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When most people think of identity theft, they instantly think of credit card fraud. While identity thieves often leverage their control of your financial life by using your credit cards, it’s only 1 type of identity theft. There are several other reasons why a criminal would want to gain access to your identity. Each can lead to significant disruptions in your life. In this article, I’m going to briefly explain 5 ways that identity thieves can create a nightmare in your life.
#1 – Credit Card Fraud
This is one of the most common reasons thieves want to steal your identity. By doing so, they can open new credit card accounts and even use your existing accounts without your knowledge. They’ll often steal your credit card statements from your mailbox. Then, they’ll have the mailing address changed and a new card issued to them. Or, they’ll pilfer credit card offers from your mailbox and open new accounts in your name.
#2 – Character Impersonation
When a criminal wants to commit a crime, he’ll often steal your identity to protect his own. Thousands of cases exists in which an innocent consumer is fined, arrested and even charged with crimes that someone else has committed in their name. While these cases are typically resolved after thorough investigation, they can become a nightmare for the person who has had their identity stolen.
#3 – Employment Fraud
While this happens less often than credit card fraud or impersonation, it’s still a problem that has a long-lasting impact. A thief will typically gain access to your social security number. Then, he’ll apply for a job using your identity. The background check conducted by the employer will look at your credit history and signs of a criminal past. Once hired, the identity thief will receive his earnings but will have those earnings reported to the IRS under your social security number. That exposes you to a larger tax bill.
#4 – Medical Fraud
If an identity thief knows you have a medical insurance plan, they’ll often gain access to your policy and request prescriptions or procedures in your name. When your insurance company notices the number of claims and procedures that are being filed on your policy, they could choose to cancel your policy or deny certain types of coverage to you in the future.
#5 – Driver Identity Fraud
Once a criminal has gained access to your social security number, it’s relatively easy for him to get access to other sensitive information. That includes your driver’s license. In some cases, an identity thief will use your information after he causes an accident or commits a traffic violation. When he doesn’t make his court appearance for the violations, arrest warrants may be issued. Because the thief used your personal information, the warrants are issued in your name.
Avoiding Identity Theft Disruptions In Your Life
Even though most of the popular media has sounded the alarm about credit card fraud, identity theft can encompass many other crimes. These include character impersonation, employment fraud, medical fraud and even stealing your driver’s license. Each of these crimes can disrupt your life. This is the primary reason why many people use an identity protection service like LifeLock. They maintain strict controls over how and when your identity is used without your authorization.
Whether you use a service such as LifeLock or choose to take preventative steps on your own, be aware of the many ways identity theft can cause massive upheaval in your life.
