Financial Identity Theft
Financial Identity Theft is easily the most recognized form of the crime, though it only comprises approximately 1/4 to 1/3 of all Identity Theft cases.
In this form of the crime, the thief obtains key information about the victim such as the victim's name, Social Security number, date of birth, and any other available bits of information. The victim may be an adult, a minor, or even deceased. This aspect of the crime is the identity "theft", enabling the thief to now misuse the victim's information, or identity.
Armed with this information, he/she may obtain credit cards and loans, buy thousands of dollars of merchandise, buy or lease homes and vehicles, enjoy expensive vacations, etc., and all under the victim's name. These actions, or the actual misuse of the identity information, are the identity "fraud".
The end result can often be devastation of the victim's finances and credit history, particularly if the theft is not identified quickly. Tens of thousands of dollars of debt can be incurred in a very short period of time, and the victim is left to clear up the mess in a case of "guilty until proven innocent."
The following are three real life examples of simple Financial Identity Theft cases reported to the Federal Trade Commission:
Case #1: "Someone is using my name and Social Security number to open credit card accounts. All the accounts are in collections. I had no idea this was happening until I applied for a mortgage. Because these 'bad' accounts showed up on my credit report, I didn't get the mortgage..."
Case #2: "My elderly parents are victims of credit fraud. We don't know what to do. Someone applied for credit cards in their name and charged nearly $20,000. Two of the card companies have cleared my parents' name, but the third has turned the account over to a collection agency. The agency doesn't believe mom and dad didn't authorize the account..."
Case #3: "Someone used my Social Security number to get credit in my name. I have been turned down for jobs, credit, and refinancing offers. This is stressful and embarrassing. I want to open my own business, but it may be impossible with this unresolved problem hanging over my head..."
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