Up to 9 million people have their identities stolen each year, according to the Federal Trade Commission, or FTC. Most are adults, but criminals target anyone, regardless of age, if they can get a Social Security number or other useful information. Identity theft hurts the victim and has effects that ripple across the entire family.
Definition
Identity theft means that a criminal has stolen a family member's information and used it to get loans, credit cards and other accounts. The thief may also use the data to get a job, rent an apartment or open utility accounts. If picked up by the police, the thief might even provide the stolen information as a false identity. Adults are the most common victims, but anyone in a family can be a victim. Identity thieves have been known to use the Social Security numbers of children to get credit or documents, according to the Identity Theft Resource Center. These criminals also use deceased individuals' identities.
Effects
The most common area affected by identity theft is finances. The individual whose information was compromised can have trouble getting new loans and credit and may be hounded by bill collectors for fraudulent accounts. Other family members are affected because purchases may have to be delayed and collection calls may bombard the household phone. Collectors sometimes hassle extended family members to get information. Some victims even have legal trouble because thieves give the victim's information when arrested. Young victims possess ruined credit records before they are even old enough to open their own accounts. They discover the problem when they try to get a student loan or their first credit card, the Identity Theft Resource Center explains.
Methods
Identity thieves get information in a variety of ways, the FTC explains. They attach skimming devices to automatic credit card readers to steal information when a card is swiped. They dig through garbage cans and monitor public information like death records. They make phone calls or send emails pretending to be a legitimate bank, company or agency, asking for personal data. They rob mailboxes or steal purses and wallets that contain credit cards, Social Security cards and other valuable documents.
Considerations
Families must be proactive about detecting identity theft. The Fair Credit Reporting Act mandates that everyone is entitled to a free annual credit report copy from TransUnion, Experian and Equifax through the annualcreditreport.com website. The Privacy Rights Clearinghouse website recommends ordering one report for each family member every four months. This provides continual monitoring. Immediately contact unfamiliar creditors listed on the report because the account may have been opened by an identity thief. Look for other red flags, such as unfamiliar alternate addresses and phone numbers.
Prevention
Clark Howard, a radio show host and consumer advocate, advises preventing identity theft by freezing each family member's credit. Freezes are inexpensive and keep anyone from accessing a credit report without a special password or number. An identity thief cannot use a person's information to open any new accounts if the credit is frozen. The freezing process must be handled with each credit bureau individually. Fraud victims can freeze their credit at no cost in some states.
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