A Credit Union E-Course

Lesson Five
ID Theft: What It Will Cost You

It may come as a surprise, but identity theft will cost you much more than just a week or two of headaches and a few credit cards. Victims of identity theft have lost thousands of dollars.  They’ve been turned down for new cars, homes, and even new jobs, based on false information on their credit report. Some have even been arrested for crimes they didn’t commit.

Yet for some people, the most distressing thing they lose after becoming a victim of identity theft is time.

It can take months—even years—to clear up the results of identity theft. You’d first have to establish that you were a victim, by proving your identity and issuing an affidavit and/or police report. You’d then need to contact credit unions, credit card and credit reporting companies, banks, and law enforcement agencies. And, you’d have to organize contacts to each of these people and follow through to make sure they’re all working together to clear your name.

According to LifeGaurd, an e-book published by personal security expert Neal O’Farrell, “Victims now spend an average of 600 hours recovering from identity theft . . . often over a period of years.”

And, some victims have discovered that even after months of work, they still haven’t completely cleared up the issue. After all of that time, they still have lost, on average, between $4,000 and $20,000, and they continue to have trouble getting approved for loans and hired for jobs.

As if this weren’t enough, ID theft can wreak havoc in your personal and emotional life as well. Going through such a crisis puts a strain on personal relationships—both at home and at work. According to the Identity Theft Resource Center in San Diego:

“The emotional impact on victims is likened to that felt by victims of more violent crime . . . Some victims report feeling dirty, defiled, ashamed and embarrassed, and undeserving of assistance. Others report a split with a significant other or spouse and of being unsupported by family members.”

Identity theft is not only a nightmare. It also costs a lot more than most people realize.

Next Lesson: Missing in Action: What Happens to a Stolen Identity?

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