Identity theft can affect families in many negative ways, regardless if only one family member has been directly targeted by thieves. If a parent has become a victim of identity theft, it will be harder for them to obtain mortgages or loans for their family. Similarly, if a teen also becomes a victim, they might not be able to apply for financial aid or student loans until all unauthorized debt has been retracted. The costs of identity theft are not only financial – families can suffer deep psychological trauma as well, including stress and depression.
Ways that identity theft can negatively affect families
When a family member, who supports their family financially, becomes a victim of identity theft, the results can be devastating for their entire family. That family member may be unable to obtain vital loans or lines of credit. If a thief is specifically abusing their credit cards, then that person and their family will also be adversely affected by low credit ratings. This means that they might not qualify for certain jobs, home loans or car leases.
When a family member has become a victim of identity theft, it might be difficult to prove to other parties, such as financial institutions and government agencies, that they are not responsible for the unauthorized purchases. If a family member is unable to pay for their bills as a result of identity theft, then repossession can occur with their cars, houses, boats, and any other items that cannot be paid for.
Identity theft’s effects can place tremendous amounts of stress and burden on families. Namely financial struggles can cause stress within the family bond, and can lead to divorce or domestic abuse. As a result, any children involved are also psychologically affected in negative ways. Their school work and self esteem can plummet.
Teenage identity theft
Teens, as members of a family, are also susceptible to identity theft. Thieves may have stolen teens’ identities during childhood, and the teens do not discover its damaging effects until they turn 18. Many teen victims of identity theft find out about it when they apply for college, and fill out financial aid applications. Teenage college applicants will be denied financial aid, including student loans and federal Pell grants, if it is discovered that they are deep in debt. Once the discovery has been made, it takes teens years to repair a credit history that is established based on identity theft. Until their credit is restored, teens will be unable to buy a car, rent an apartment or find employment.
Summary
Identity theft does not only affect individuals, it also affects families, and its effects can be widespread. If a family member has become a victim of identity theft, they might not be able to obtain necessary loans, lines of credit and mortgages to support their family. Teens can also fall victim to identity theft, which could ruin their chances of attending college or gaining employment once they turn 18. It is important for every family member to understand identity theft’s risks, and to safeguard against them by staying aware and acting fast.