What is one of the effects of identity theft?

One significant effect of identity theft is its impact on future investments. When someone falls victim to identity theft, their financial information, including credit card numbers, Social Security numbers, and bank account details, can be misused. This often leads to damaged credit scores due to unpaid debts taken out in the victim's name or fraudulent activity that goes unnoticed. A poor credit score can hinder an individual’s ability to secure loans, mortgages, or investor funding in the future, making it more difficult to make sound financial investments. As a result, the repercussions of identity theft can extend far beyond immediate financial loss, affecting an individual’s long-term financial health and opportunities for growth.