Identity theft is when someone steals your identity and uses it for personal gain. Generally someone will use your name and social security number to open bank accounts, take out personal loans, or credit cards. They can do a combination of all these things.
Thieves may access your bank accounts or credit cards. They may fraudulently file claims using your identity and information. These actions will affect your credit score. Usually you will learn about this happening, once the account has gone into collections.
You can prevent identity theft by protecting your personal information. Keep your social security number in a safe place that will not be accessed by thieves. You should shred old bank and credit card statements. You should also report anytime that your credit cards or checking information is stolen.
Once you realize that your identity has been stolen you will need to file a police report. Additionally you need to begin checking your credit report on a regular basis. You can freeze your credit report and have the lenders contact you directly whenever they are approached with a loan. You can also request that a fraud alert be attached to your credit report, which puts up an alert to potential lenders.
You will need to contact each bank or credit card company that has issued a card to the person who stole your identity and explain what has happened. This can take several phone calls, and you will need a police report. Be prepared for a frustrating experience, but you can take care of it.
Once you have experienced identity theft you may feel a wide range of emotions. Often people feel violated, and have a hard time trusting others. It is important to work through and acknowledge these feelings. Additionally you should continue to check your credit report regularly and protect yourself as much as you possibly can.
