What Is The Cost of Identity Theft?

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The cost of identity theft for victims could be significant or minuscule. If the victim acts quickly to restore his or her identity and reports that their accounts have been compromised, then the charges and liability can be limited. Though, the cost of identity theft in terms of emotional and monetary damage can be immense.

The identity theft restoration process on average will cost victims in the range $2000-$15000 of income. One reason why the cost of identity theft can be this high is due to the length of the recovery process, which can be only a day or possibly an entire year to fix the damage that has been done financially. The cost of identity theft cases is generally in the range of $800-$1400 for victims, which includes legal fees and paperwork.

Cost of Identity Theft – Not Just Money

Cost of Identity Theft - can be quite high

While the monetary cost of identity theft can be quantified, the impact psychologically can’t be measured and is often quite substantial. The amount of money victims lose can cause depression, anxiety, and anger. It has been said that approximately 1 out of every 2 victims lose trust in others, experience disbelief, denial, and rage, while also feeling that the police can’t protect them.

While a thief using your credit card to run up debt under your name is a disaster, other elements of identity theft can actually be more frightening. For instance, your social security and medical benefits can be used by thieves.

Cost of Identity Theft – Other Costs

Identity fraud also causes several other problems as well. If your credit takes a big hit because of the theft, then you could be denied credit going forward. Also, some victims are arrested because of a crime committed by the thief that stole their identity. You might have to file for bankruptcy because of the incurred debt that you had nothing to do with. Some victims lose their jobs and are not able to get employment elsewhere because a thief is using their social security number. And, if a criminal uses your personal information to get medical treatment, then you could be turned down for medical insurance.

Banks and all other companies must be contacted immediately if a person’s debit cards, credit cards, or checks have been stolen in order for liability to limited. The policies outlined by the financial institutions you have an account with should be learned and followed right away when identity theft occurs. Regardless of whether a person is a victim or not, he or she should closely monitor their accounts. Always know where your check books as well as credit and debit cards are at all times to avoid them being stolen because the cost of identity theft can be really high.

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