Victims of identity theft can suffer many negative financial effects including, paying higher interest and insurance rates, being denied for loans or lines of credit, and multiple bank fees, to name a few.
The following are a few things identity thieves may use your identity for:
Identity thieves may call your credit card issuer to change the billing address on your credit card account.
The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem. This can result in unexpected calls from creditors, and extensive damage to your credit rating.
Someone may open new credit card accounts in your name.
When someone else uses your credit and doesn't pay the bills, the delinquent accounts are reported on your credit report.
A bank account could be opened in your name and bad checks written on that account.
Not only will this affect your ability to write and cash checks, if fraudulent checks are written, you may end up with a warrant out for your arrest depending on the degree of seriousness.
Counterfeit checks or credit or debit cards may be obtained, or authorizations for electronic transfers in your name to drain your bank account.
No one wants to have checks written for bills or go to withdraw cash, and find that not only is there no money to cover these checks, but negative balance fees will be assessed to your account, sending you in a major tailspin.
An auto loan or insurance policy may be taken out in your name.
This will not only increase your debt, but when the bills are not paid, collectors will call you for payment, and report you to the credit bureaus.
To find out more about the effects of identity theft, please visit the following sections: