Before a person joins any financial institution one of their major concerns should be to ensure that this institution will be able to keep their personal details secure in order to prevent them from getting into the wrong hands and leading to them becoming victims of identity theft.
Furthermore, I believe that financial institutions should also do all they can to help out victims of identity theft in order to remove the blemish they might have on their credit score and assist them in getting their life back.
For a long time identity theft was not considered as a serious offence, and many people still do not consider it thus, until the effects of the id theft come to light and the damage and stress become all too plain to see.
The Effects Of Identity Theft On Financial Institutions
Not only does this kind of theft affect the person the crime was committed against, it forms a chain which also brings in the financial institutions as they end up incurring a huge loss as a result of their clients’ problems.
This may even get worse in cases where the organization is found to be the one responsible as they end up losing business when clients begin to pull out.
Things can even get worse for the organization if they are believed to have been unsuccessful in ensuring total safety of their clients’ details – if such activity is suspected then they are meant to immediately create a suspicious activity report whenever they believe any kind of dubious transaction is carried out.
The Effects Of Identity Theft On The Individual
Independent research suggests that the amount of time it takes a person learn that they have been victims of identity theft is roughly 14 months which is more than enough time for an unlawful person to completely destroy a person’s credit record.
They manage to do this by making huge purchases and never making any payments to the credit card.
Cleaning up this mess can really cause a lot of stress and discomfort for the person affected since they are left with a lot of financial debts which they are required to sort out despite the fact that they had nothing to do with it.
At this point financial organizations should come in to assist the victim in order to help them back on their feet and bring their lives back to normal.
What usually holds back the affected person in sorting out this issue is the fact that they are expected to bring forth evidence that will exonerate them from this scam.
In most scenarios they are often seen to be guilty even before the court decides otherwise.
The situation becomes more complicated when those owed money as a result of the identity theft request to be presented with old papers or receipts before the crime took place in order to validate both the signature and employment particulars.
As you can imagine, this make life even tougher and more stressful for the victim.
To finish then, it would be safe to say that identity theft affects a person’s life in ways they cannot possibly imagine and most certainly will not want to experience.