An Identity Thief steals your identity
and goes on a crime spree. Even after you clear things up, the damage to your reputation will be done.
Criminal Background Check
You apply for a new job and everything goes great. Then they do a background check and it all falls apart. Even after you clear things up, that opportunity is already lost.
Traffic Stop Nightmare
A simple traffic stop for speeding can turn into a nightmare when it turns out there is a warrant for your immediate arrest. You try to explain you've never even been to that state before, but it doesn't matter.