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You misunderstood how this affects SS #s holders. Its way more serious than just opening up a credit card and disputing it later on. In such situation the bank will reimburse you and close down fake account, but many banks will put negative information on your account just to warn other banks. You have to look at it from bank perspective, not your own. The bank can report: "okay we don't know how and when but someone opened account in client's name on his behalf so this clients has problems with his identity being stolen. Be warned".

Edit: not to mention the worse damage will be from fraudsters taking loans.




Does this "be warned" flag on someone actually damage them in any way?




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