Identity Theft And Credit Reports - Knowing It All

Since its boom in 2003, the rate of identity theft crimes has risen at a steadfast

pace and has victimized more than 3.6 million households in that year alone. Identity theft, also known as iJacking, is when a person's physical documents such as Social Security Number, bank statements, and credit card numbers are stolen and used to access or avail of purchases or loans illegally. Credit-related crimes are known to constitute a great part of identity theft occurrences. According to the Federal Trade Commission, fraudulent acts involving credit profiles and cards amounted to almost 20 percent of identity theft crimes or acts committed.

There are numerous ways in which people can take hold of your documents. The most common, however, is by stealing personal information and creating or accessing credit accounts illegally.

Theft crimes have become a real problem for today's modern society, since they can cause such huge damage. The average American that has been victimized spends up to 500,000 dollars to clear their name and can take up several months or years to do so. As in this case, when credit card numbers are stolen, victims might find themselves with numerous unwanted purchases and loans availed under their own name. Their credit rating might also go down, thus complicating further transactions with credit bureaus. Lower credit scores can lead to higher credit interest rates as well.

Several measures have been devised and experts recommend safeguarding valuable information and documents. Most advise to immediately shred any important physical document. When it comes to credit however, the best way to prevent or detect identity theft crimes is by regularly checking the credit report. A credit report or credit file disclosure is a detailed and accurate account of a person's financial history. These reports contain all purchases made on credit and loan applications (whether granted or denied). By frequently reviewing the financial history or report, one can easily spot erroneous or suspicious entries and report them to the appropriate authorities so that they can be acted upon. Nonetheless when suspicious entries are found, the usual recourse is to immediately inform your creditor or lending company and take the necessary procedures to block your credit account to avoid further damage.

There are a lot of discussions about identity theft and its effect on people's lives. Many have already experienced the frustration and pain that it may bring while others are employing every precaution to prevent any eventuality of identity theft. Nevertheless, as experts say, prevention nowadays only minimizes the chances of theft happening.

by: Leo Chu

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