Identity Theft Basics

Identity theft is so dangerous to us as individuals because of the damage that it can cause to our finances for years to come.

The first thing to be aware of is that in the modern world, personal identity has value. With the ability of most average working people to be able to apply for credit cards, store cards, car financing and overdrafts there are potentially thousands at stake.

For the criminal, if he or she is able to open bank accounts in someone elses name, someone that has good credit, it may be possible to apply for credit worth tens of thousands. Rich pickings indeed!

Of course, others are looking to obtain false documents. An application for a passport and / or driving licence can also have significant value. If you are from a 'first world' nation, for example the EU or the USA, there are significant travel and visa benefits to holding such documents.

Other criminals will be planning to make false applications to governments for state benefits. Gangs work the 'benefits system' to the tune of tens of millions each year. Though it is work and obviously has risks, prison being the main one, collecting benefits isn't the most difficult of daily jobs.

If you are the vicitim of identity theft, you may find it difficult to get a loan, credit card or mortgage. You may also find that you are chased by lenders for money and debts that you know nothing about. This can take months or years to resolve and is very stressful indeed.

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