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Effects of Identity Theft Author Name Institutional Affiliation Effects of Identity Theft Identity theft is common today. The act involves a situation where one possesses, transfers, or uses another person’s private information, without permission, to commit a crime or draw personal benefits from them. Frequent examples of identity theft include synthetic, social security, criminal, medical, insurance, and tax identity thefts among others (Eisenstein, 2008). More often than not, identity theft causes substantial financial losses and unexpected credit issues to victims due to lack of knowledge. Financial Losses The financial impact of identity theft, in particular, can be extremely hard-hitting. Using the misappropriated personally identifiable information, such as credit card numbers of an individual, an identity thief can effectively make unauthorized financial transactions without the victim’s knowledge. According to Finklea (2014), some of the common transactions inc...
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