An identity theft victim usually discovers that their information has been used long after it has been stolen. By the time the theft is determined, the perpetrators have potentially affected several aspects of the victim’s life.

Too often, victims find themselves in the following situations:

• - They are denied a mortgage due to poor credit
• - They receive bills in the mail for goods and services they never purchased
• - They receive calls from collection agencies for outstanding charges
• - They receive a notice of insufficient funds from the bank
• - They receive calls from law enforcement or fraud departments informing them of suspicious activity
• - A check from a potential employer reveals a criminal record

These can be emotionally devastating and lead to future losses of income before the case is resolved. There are two areas where victims incur losses: time and money.

Your Time

It is estimated that the average identity theft victim spends over 500 hours working to rid themselves of the problems associated with the theft. Many issues take more than two years to resolve. Victims spend time on the following actions:

• Police reports. Some disputes can be resolved internally with the company involved. However, many cannot. Victims need to start documentation of the theft. A police report is the first step in obtaining an Identity Theft Report. Sometimes police departments may not want to take a report face to face. Victims then need to persist, including sending the Federal Trade Commission’s Law Enforcement Cover Letter.
• Distributing the Identity Theft Report. Once a report is available it needs to be sent to the credit reporting agencies, anyone you conduct business with, and the companies that you know have the fraudulent information. It is advised that these are sent certified mail.
• Obtaining the information related to the theft. Victims are entitled to copies of applications and transactions that enabled the theft to occur. Requests must be made in writing.
• Working with the credit report agencies to expunge the fraudulent actions. Victims spend time correcting negative information on their credit reports so they can continue to receive credit.

Identity theft protection may help, however you still need to actively monitor for yourself.

Your Money

Victims of Identity Theft can spend thousands of dollars not to mention lose wages as a result of the fraud. There are several ways they are affected financially:

• Liability for credit card charges, debit card charges, and unauthorized withdrawals on bank accounts. Most victims of credit card fraud are limited to $50 in liability. Debit card holders can be liable for up to $500.00 and they can be liable for the total amount if it is not reported within 60 days.
• Legal Costs. Victims pay for police reports, some court fees, and if necessary, a lawyer.
• Higher interest rates. Because of the time it takes to remove the incorrect information, victims may be offered credit at a higher interest rate because of bad credit.
• Loss of Wages. Victims can lose increased wages from a rescinded job offer or for taking time from current employment to deal with the theft.