The impact of identity theft on credit scores

The most common situations of identity theft include unauthorized access to certain privileged services using name or identification numbers, and the use of credit cards without the owner's consent. Due to the occurrence of identity theft, financial institutions such as banks use your credit score to determine a person's risk disclosure and then increase credit.

Therefore, a credit score is simply a summary of a personal credit record to determine its credit rating. Your credibility determines whether you can get credit and how much credit.

The impact of identity theft

financial problem from

 : An obvious result of identity theft is the loss of money. Here, a person can steal your identity and use it to withdraw funds from your account, resulting in personal financial loss. In some cases, the thief may obtain a credit card on your behalf and use it fraudulently to get you into unplanned debt.

Credit problem from

 : Due to the abuse of credit cards, you will definitely find yourself having a credit problem. This is because the fraudster is not concerned about the impact of non-repaying bills due to credit card usage. This will automatically lower your credit score.

Legal Issues from

 : We live in a world where crime takes place. If you commit a crime with your identity, the law enforcement agency will look for you when your identity document is at the crime scene. This has led to legal challenges.

Preventive measures against identity theft

Get regular credit reports from

 : Be sure to visit your Credit Bureau regularly to familiarize yourself with your credit status. If you find a suspicious item in your report, you can report it to the authorities for early intervention.

Keep your PIN and password confidential from

 : Do not share your PIN with anyone. Most fraud is caused by social engineering. Most importantly, don't make your password as obvious as your birthday or wedding anniversary date. Those who are passionate about fraud can easily guess this.

Remedial measures for identity theft

Use of legal procedures from

 : As a victim of identity theft, it is recommended that you file a lawsuit in court to compensate you for the damage you have suffered.

Reduce further losses from

 : You must take reasonable steps to control the incidence of identity theft. The starting point is to work closely with the author and report the matter to the national anti-fraud department. In addition, you should suspend the affected account.

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