 TITLE: The Unexpected Costs of Identity Theft CONTENT: How Can Identity Theft Impact Your Life?\n----------------------------------------\nThe impact of identity theft generally depends on the type of fraud and how long it takes to be detected. If caught immediately, an unauthorized charge to your credit card can usually be resolved quickly, with the charges reversed—or sometimes even declined before they're approved—and a new card and account number issued on the spot. But if just a little bit of time passes before the account holder, the creditor or a merchant catches on, the same fraudsters could quickly rack up charges and cause other harm that would take more time and effort to reverse.\nIn more complex cases, identity thieves may open loans and credit cards in your name, file taxes and receive refunds, or use your identity to obtain medical services. In these cases, it can take years to stop the fraud, undo the damages, and restore your identity and credit.\nHow can identity theft take a toll on you and your finances? Here are four key ways:\n*   **Time and money**: Although debit and credit card issuers limit your liability for fraudulent charges, you could still be on the hook for the loss if you don't report phony charges in time. And since time is money, the hours you spend tracking, reporting and resolving the effects of identity theft are also a significant loss. According to a report from the SANS Institute, it takes an average of six months and roughly 200 hours of work to recover your identity after it's been compromised. It may even cause you to have to take time off from your job.\n*   **Criminal record**: If someone is using your identity to commit crimes, you could be at risk for legal consequences, including arrest or a criminal record. Proving that your identity has been stolen is one hurdle; getting an arrest record cleared up—even if it's proven to be unjustified—is also a time-consuming challenge.\n*   **Credit damage**: Fraudulent charges on your accounts must be reported and resolved. In the meantime, work closely with your creditor to make sure you're meeting your financial obligations. If you fail to make a payment on an outstanding balance, you run the risk of having your payment reported as late or missed. If a fraudster has used your identity to open new accounts, their failure to pay can show up on your credit report and damage your credit score. The loans or credit they've opened also increase your debt amounts and credit utilization, which can affect your credit scores and inhibit your ability to get credit yourself. For the most part, these issues are resolvable, but the process will take some time and effort.\n*   **Emotional distress**: Having your identity stolen can be traumatic. In a survey of consumers who experienced identity crime, the Identity Theft Resource Center found that 77% reported increased stress levels and 55% experienced fatigue or decreased energy. Additionally, respondents said they had trust issues with friends and family, and problems with their employers or schools. END