Identity theft is an ever increasing problem that can lead to a person’s credit report and score being damaged. The reason for such an increase in the number of identity thefts each year is that more and more transactions are being done online or over the phone as the United States becomes ever increasingly plugged into the internet and consumers move to the use of internet transactions more and more each day.

Statistics

In the past five years, over 27 million Americans have been victimized by identity theft while it is estimated that in the coming year more than 200,000 people will be victims of identity theft in the United States. Identity theft is now among the top in white collar crimes and is expected to cost victims a combined total of $4 billion in the coming year. In the last five years alone identity theft victims have incurred $5 billion worth of expenses.

How ID Theft Happens

There are many ways in which identity thieves can try and steal an individual’s identity. One way is to look through garbage or to steal mail from the victim’s home in an attempt to find sensitive information. Others pose as landlords or other individuals who would normally have a right to privileged information regarding credit card numbers or history. Some identity thieves may payoff an employee from a merchandise store in exchange for credit card information, while others are victimized by computer hackers as they make transaction over the internet. Identity thieves will steal purses or wallets and use credit cards and driver’s licenses to make off with thousands before victims can recover. Almost half of identity theft victims report that the thief used a credit card in their name. Thus, it is very important to keep identity thieves at bay for the sake of a credit rating.

Recovery

It is reported that it can take anywhere from six months to a year for a person to regain their previous financial status prior to an identity theft. Most victims are unaware that their identity has been stolen until one of their credit cards is declined or a loan is declined. In most cases, identity thieves have been purchasing items using a victim’s name for months before the theft is discovered. This is why recovering a good credit rating can be such a daunting task for someone who has been victimized.