Identity fraud occurs when someone uses your name and personal identification to get a loan, to gain credit or to purchase goods and services. It also allows the perpetrator to gain access to your bank accounts. Access to your social security number and name gives a thief the ability to apply for a driver’s license in your name, apply for a credit card in your name and obtain your credit history reports. The increased use of the Internet and the centralized databases that are the cornerstone of today’s commercial market also make it much easier for someone to access and use your identity.
Victims often go unaware of the crime. Only after you apply for loans and extensions of credit are you made aware of the identity fraud. Your credit report can be seriously damaged by the misuse of the credit cards or bank account by the perpetrator. This results in you being given a negative credit history. Federal and state laws can limit the extent of your personal financial responsibility once your identity is stolen. However, it can take years to contact every agency and institution that was tapped by the thief and to notify them that the loan or credit card that they issued was fraudulent.