Comment Re:semi-secret number bad tool for ID (Score 2, Interesting) 107
The problem is twofold:
1. If somebody is the victim of identity theft, they are held responsible for any debts that the criminal creates in their name until they prove the theft occurred. The victim may not know the theft has occurred until months later, when collection proceedings have begun. The problem here is that it is incredibly difficult to prove that those debts were not created by the victim, and the victim can suffer years of harassing phone calls from debt collectors, and a bad credit rating. I don't know how Swedish debt collectors are, but here in the States many are virulent and threatening. (Even though that's illegal.)
2. The bad credit rating means that the victim will then be charged higher interest rates for mortgages, in most states higher auto insurance rates, and may be unable to get new loans for valid purposes (car, house, school, etc). Some employers run credit histories on potential employees. Some landlords run credit reports on potential renters. Some people find that they have been a victim of identity theft when they are trying to buy a house and get turned down for a mortgage.
It is hard enough to fix genuine mistakes; intentional misuse is a nightmare to unravel. The unending beaurocracy of the credit agencies hinders the solution and it is difficult for individuals to fight such a large system. In a nation built on capitalism, where the worse your credit is the more expensive and difficult your life becomes, this is a big big problem.
1. If somebody is the victim of identity theft, they are held responsible for any debts that the criminal creates in their name until they prove the theft occurred. The victim may not know the theft has occurred until months later, when collection proceedings have begun. The problem here is that it is incredibly difficult to prove that those debts were not created by the victim, and the victim can suffer years of harassing phone calls from debt collectors, and a bad credit rating. I don't know how Swedish debt collectors are, but here in the States many are virulent and threatening. (Even though that's illegal.)
2. The bad credit rating means that the victim will then be charged higher interest rates for mortgages, in most states higher auto insurance rates, and may be unable to get new loans for valid purposes (car, house, school, etc). Some employers run credit histories on potential employees. Some landlords run credit reports on potential renters. Some people find that they have been a victim of identity theft when they are trying to buy a house and get turned down for a mortgage.
It is hard enough to fix genuine mistakes; intentional misuse is a nightmare to unravel. The unending beaurocracy of the credit agencies hinders the solution and it is difficult for individuals to fight such a large system. In a nation built on capitalism, where the worse your credit is the more expensive and difficult your life becomes, this is a big big problem.
