info@carolinalaw.com
info@carolinalaw.com
When a company has your personally identifiable information (PII), you should know that it is protected. Unfortunately, cybercrime rates continue to skyrocket each year, and with it, the victims of identity theft. When your data is exposed and someone uses it to impersonate you, you are left to pick up the pieces in countless ways. Identity theft can leave a devastating impact on a person financially, professionally, and emotionally. At Maginnis Howard, we specialize in getting justice for identity theft in many forms.
Identity theft occurs when PII is taken in violation of state and federal privacy laws. It is a broad term that encompasses many forms of theft. An entity unlawfully obtaining personal information like your Social Security number, credit card information, or banking credentials can use it to commit identity fraud. The thief may open accounts impersonating you or drain your bank account. Millions of Americans report fraud every year, resulting in billions of dollars in losses.
The number one reported type of identity fraud in 2024 involved identity thieves starting new credit card accounts using someone else’s name. This type of crime is not new, but how a criminal can forge personal information is constantly evolving. Financial institutions without robust screening may only need key details to masquerade as someone else successfully. The fraudster typically runs up charges on the card to leave you with the bill. Not only does this leave you with debt, but it can also drastically affect your credit score.
Similar to credit card fraud, a criminal will apply for hefty loans using a victim’s information. Often, the victim has excellent credit, which is damaged by the new and unpaid loan on their credit report.
Perhaps the most directly harmful fraud involves criminals illegally gaining control of existing online accounts. The perpetrator, acting as the account holder, generally hacks or steals credentials to log in and move funds.
Fighting Identity theft in the digital age presents new challenges seemingly every year. Cybercriminals may gain access to a victim’s online account through a variety of methods:
Artificial Intelligence (AI) is increasingly used in different identity theft schemes. Cybercriminals will use AI to quickly create content or websites that look legitimate to victimize consumers.
The damage is apparent with some types of identity theft, such as a drained bank account after a brute force break-in. However, victims might not immediately notice or see the impact of fraud. It’s essential to monitor your credit score and credit report regularly for signs of identity theft, such as a sudden decrease in your score or debt collection records. You may also receive written notices concerning data breaches. In some cases, such as with the 2024 Coinbase data breach, the thieves used social engineering to convince consumers they were speaking to a Coinbase employee. Contact an attorney immediately if you believe your identity was stolen and used for fraud.
There are so many avenues for criminals to take to get your information, so it’s essential to be proactive. Some of the most critical safeguards for identity protection include:
Direct financial losses are just one consequence of identity theft. Many people who report losing thousands of dollars are left to deal with disputing fraudulent charges, frozen accounts, and ruined credit. Sometimes, this process can take over a person’s life, causing emotional stress. Identity theft is a violation of your privacy; some victims blame themselves. Having an identity theft lawyer on your side through this process is important to support your financial recovery. You don’t have to handle the fallout alone.
If you believe your identity was stolen and financial fraud is occurring in your name, follow these steps.
An identity theft case can have many liable parties. The person or group responsible for the theft may seem like the most obvious defendant. However, in a shocking number of cases, these defendants are not easy to find, or when identified, don’t have any assets. An attorney can help you determine all responsible parties to get you the compensation you deserve, including:
Consumers put their trust in banks and other lenders and have the right to expect that their financial well-being is secure. Financial institutions must actively monitor for suspicious activity and act on it. For example, if a customer who has little activity suddenly sends tens of thousands of dollars to an outside account, the company should be able to recognize that something is not right. Additionally, the company must share that information and attempt to verify it with the customer as soon as possible.
Data breaches occur when an outside actor unlawfully accesses sensitive information. These hacks come in many forms and are becoming an increasingly difficult-to-avoid issue. In 2024 alone, breached companies sent 1,350,835,9888 notices to consumers whose data was exposed (according to the ITRC). Cybercriminals may exploit data security and encryption weaknesses or target employees with phishing scams to access PII. When this happens, the business must be held accountable for its part in your identity theft.
CRAs collect consumer information so companies can decide about loans, living arrangements, employment, and more. The reports they create must be 100% accurate. When you report to these agencies that a record results from identity theft, the Fair Credit Reporting Act (FCRA) requires that they investigate the claim and remove false data. In some cases, the effects of identity theft are multiplied when a consumer is denied a loan for something they believed they had already resolved.
Dealing with the aftermath of an identity theft can be overwhelming to handle alone. Maginnis Howard’s experienced identity theft lawyers can help you through this difficult time. A lawyer can guide you through each step of the legal process and hold the negligent parties accountable. The most essential part of your recovery is getting your life back on track. That means ensuring your records are accurate with CRAs and other businesses and getting compensation for your losses. Call us today for a free consultation about your rights.
There are stringent state and federal laws that protect consumers from identity theft. This includes:
At Maginnis Howard, we are dedicated to defending the rights of individuals impacted by identity theft. Our team of experienced consumer protection attorneys can offer you the legal support needed to handle the aftermath of fraud. Reach out to us for a consultation to discuss your case and find out how we can help. We serve clients throughout North and South Carolina from our offices in Raleigh, Charlotte, and Fayetteville.
Yes. This crime is a felony under state and federal law.
Typically, you will need as many supporting documents as possible and an FTC Identity Theft Report to start repairing your financial reputation. The situation will vary, so an identity theft lawyer is essential.
