 TITLE: How Common Is Identity Theft? CONTENT: How Can Identity Theft Affect You and Your Finances?\n----------------------------------------------------\nAlthough much of the financial damage from identity theft can be dealt with by reporting the fraud and filing claims with your financial institutions, Javelin nevertheless reports that consumers paid $3.5 billion out-of-pocket for costs related to identity theft. Among the possible reasons for this: fraudulent charges that are reported too late or accounts that don't assume liability for identity fraud. Identity theft insurance can help you defray some of this cost.\nDetecting and reporting identity theft takes vigilance and time. So even if fraudulent charges on your account are eventually reversed, you'll need to invest time and effort in consistently monitoring your accounts for suspicious activity. You may also want to monitor your credit, to make sure fraudsters aren't opening new accounts in your name. If someone has given your Social Security number to an employer, you may have to prove to the IRS that your identity was stolen. The same goes if a fake tax return was filed—or COVID-19 stimulus money paid out—using your information. Undoing the effects of complex identity theft can take months or even years.\nThere may be emotional costs as well. The Identity Theft Resource Center surveyed consumers who experienced identity crime and found that 77% had increased stress levels and 55% experienced fatigue or decreased energy. END