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      What is ID Theft

What is Identity Theft?

Identity theft occurs when your personal identifying information is stolen by someone. Many identity thieves use stolen information to open fraudulent credit card accounts in your name, to apply for utilities and cell phones in your name, to borrow money in your name, and to make major purchases such as houses and cars in your name. Other identity thieves may even use your identity when arrested or interrogated.

Consider This Example

Based on her good credit history, a law-abiding Alabama consumer receives a pre-approved credit card offer in the mail. This consumer considers this offer "junk mail" and tosses it in the garbage. A thief finds this offer and applies for the credit card. He changes the address on the account so that the consumer does not receive the statement. The thief runs up charges to the limit on the credit card and then never makes a payment on the account. Several months later, the unsuspecting consumer tries to purchase a new vehicle and is turned down for a loan because of a low credit score. This Alabama consumer has become the victim of identity theft.

Identity Theft is a Crime

Identity theft is a crime in Alabama. Under Alabama law, if the person who stole your identity is convicted of doing so under Alabama’s identity theft statute, you may get the following relief:

1. The thief may be ordered to pay restitution to you, which can include financial losses such as the money stolen, the costs you incurred in correcting your credit report, and costs incurred as a result of court proceedings, attorney's fees, and lost wages.
2. The judge that sentences the identity thief can issue an order to correct any of your public or private records that have false information as a result of the theft of your identity.

You may also have the right to bring a civil suit against the person who stole your identity, and in this suit you could recover $5,000 per incident, or three times your actual damages, whichever is greater. You may also have the right to have identification documents reissued to you at no cost to you.

Identity theft is also a federal crime, and many federal agencies are working hard to combat identity theft. Federal law provides many protections for victims of identity theft. These protections may help limit the actual financial losses that you suffer as a result of the theft of your identity. You can find out more about those protections at www.ftc.gov or by calling 1-877-IDTHEFT.

Identity theft wreaks havoc on your life because it damages your good name and credit and exposes you to potential financial loss. Despite the best efforts of law enforcement, identity thieves often go uncaught. The thieves' victims are the ones who pay the biggest price – in both time and money.