Identity theft happens when someone uses your personal information like name, date of birth, PAN and other ID numbers to apply for loans or credit cards. In which case you are liable for the liabilities created by Identity Theft! The individual who has stolen your identity will probably not payback the misappropriated funds. Hence, the lender will update your CIR to disclose that you have defaulted on a loan. Unfortunately, the statistics are looking very bad! 38% of victims find out about the identity theft within 3 months of its starting! – Source: Identity Theft Resource Centre Statistics for America
The situation in India is more pathetic with no stringent laws enforced to secure data without any leakages and breaches of privacy like Identity Theft and Assumption Deterrence Act of 1998 in USA which punishes with 15 years imprisonment and $250,000 fine.
The easiest way to prevent identity theft is to regularly monitor your credit information report (CIR). Purchase your CIR on a quarterly basis and ensure that your credit history accurately reflects your credit usage and activity. If you have seen enquiries that you have not made, it is a clear case that your personal information is accessed by a third party to apply for a loan or a credit card.
The easiest way to prevent identity theft is to regularly monitor your credit information report (CIR). Purchase your CIR on a quarterly basis and ensure that your credit history accurately reflects your credit usage and activity. If you have seen enquiries that you have not made, it is a clear case that your personal information is accessed by a third party to apply for a loan or a credit card.
