Identity Theft: Understanding the Consequences

You’ve likely encountered someone who has been a victim of identity theft, or you may have been an identity theft victim yourself. Identity theft includes social media hacks as well as account takeovers that can lead to stolen funds. In some cases, identity thieves will pretend to be someone else to make purchases online. They may also use your information to set up lines of credit.

Now that most of the world is digitized in one way or another, identity theft is becoming more common. In 2016, around 15.4 million individuals became identity theft victims and experienced about $16 billion in losses. The Federal Trade Commission (FTC) reported that 29% of identity theft victims stated their information was used for tax fraud. The FTC asserts that identity theft is an ongoing problem.

What Happens When Someone’s Identity Is Stolen

When someone’s identity is stolen, this can be devastating for their business and personal finances. The thief may ruin the victim’s reputation on social media and use the victim’s financial information to make unauthorized purchases. Not to mention, the victim’s privacy is violated, and it can take years to repair the individual’s finances. 

In many cases, it is difficult to tell who is responsible for identity theft. Those who commit identity theft are cunning and know how to work secretly on the Dark Web. This is especially frustrating for victims since it can seem like there will not be any justice or recovering of funds. However, consumers are protected by federal and state laws when identity theft occurs. 

Identity Theft and Assumption Deterrence Act

Since identity theft is, unfortunately, becoming more common, the U.S. government passed the Identity Theft and Assumption Deterrence Act. This act was passed in 1998 and was put in place to declare that identity theft is a federal crime. 

Since it became evident that identity theft wasn’t going to stop any time soon, Congress passed the Identity Theft Penalty Enhancement Act in 2004 to increase the penalty for “aggravated” identity theft. Under this act, the court can enforce a two-year sentence for general identity theft offenses and a five-year sentence for identity theft related to terrorism. 

Even though identity theft is a federal crime, the punishment for individuals convicted of identity theft can vary based on the laws in the defendant’s state or region. Sentencing and charge will depend on the severity of damage to the victim and the intent of the identity theft. 

To determine proper sentencing, the crime will be investigated by:

• The FBI
• The FTC
• The IRS
• Local police departments 

The Penalties for Identity Theft

Below are some of the consequences for individuals who are found guilty of identity theft.

Fines

A person who is guilty of identity theft will have to pay a fine. The amount of the fine will be determined based on the identity theft charges and whether the crime was a felony or a misdemeanor. 

Restitution

The guilty party is required to repay the victim for financial losses. The defendant will also have to pay the victim for lost wages, legal fees, damages, and emotional impact associated with identity theft. 

Jail Time 

Individuals who commit identity theft could face time behind bars. The minimum sentence is two years for aggravated identity theft. This sentence can increase based on the severity of the criminal activity. 

Probation

While this is rare, individuals who have committed identity theft for the first time and didn’t cause significant harm to the victim may be able to serve probation instead of jail time. However, the defendant will still be responsible for paying all fines and compensation to the victim, as well as adhering to court orders. 

If You’re Facing Charges

If you are facing identity theft charges, it’s best to hire a criminal defense lawyer who can represent you in your case. If you work with a qualified attorney, you’ll have a better chance of getting a lower sentence or penalty. In some cases, your lawyer may be able to get the charges dropped entirely. It all depends on the evidence presented against you and the strategy you use.