8. Identity Theft and Your Credit

Identity theft is such a rapidly growing crime that some experts say it’s no longer a matter of whether you’ll become a victim, it’s a matter of when.

Currently, experts estimate more than 8 million people per year fall victim to identity theft. The annual costs of this crime are staggering:

• Billions of dollars in losses to businesses and institutions

• Millions of dollars in out-of-pocket expenses for consumers

• Hundreds of millions of hours spent by consumers trying to resolve the problem, stop the fraud, and clear up their credit reports

Identity theft encompasses a variety of crimes, from stealing someone’s credit card number to opening accounts in the victim’s name. About 15 percent of victims report that their identities were stolen for purposes other than obtaining credit, such as to get government documents, commit tax fraud, or mislead police. Some people give phony names and Social Security numbers when arrested or stopped for a traffic violation.