Identity Theft on the Rise

According to the FTL, almost 10 million people were victims of identity theft in 2004. One major reason for the huge increase is due to instant credit services for consumers.

Instant credit is offered by some merchants selling high ticket goods. Credit bureaus offer credit checks within a few seconds to the merchants. So, an imposter is able to obtain major credit lines with little more than a name and social security number.

To help decrease this problem, some states have approved a credit freeze option. A consumer can opt for a credit freeze which will essentially “lock” their credit file. This prevents anyone from obtaining credit in their name. This is only available in Texas and California, and soon to be available in Louisiana and Vermont, due to the credit industry fighting it’s approval for fear of the effect it would have on consumer spending.

Unfortunately, instant credit and identity theft is a problem that consumers will basically have to deal with. Therefore, monitoring your credit is more important than ever.