Identity theft occurs when someone wrongfully uses your personal information, such as your name, date of birth, social security number, driver’s license number, bank account information or credit card number, to commit fraud or some other crime. According to the Federal Trade Commission (FTC), an estimated 9 million Americans have their identities stolen each year.
Identity theft victims often spend hundreds of hours and thousands of dollars trying to repair and restore their identity.
How you can prevent identity theft
- Carry a minimal amount of personal identifying information on you. Do not carry your social security card or your passport with you unless you plan on using it that day.
- Don’t give out personal information over the telephone unless you initiated the call. If someone calls from your bank or credit card company and asks for identifying information, tell them you will call them back. Hang up, look up the phone number (do not take the phone number from them) and return their call.
- Monitor your accounts. Most banks and credit companies allow you to view your account online. Carefully monitor your accounts and report any suspicious activity to the proper authorities.
- Prevent dumpster and trash diving by shredding all documents including personal information before disposing of them. This includes bank statements, credit card statements and credit applications.
- Check your credit report at least once a year. AnnualCreditReport.com allows you to pull your credit report, from each of the three major reporting agencies, once every 12 months.
Avoid the hassle of reclaiming your identity
Many home and some auto insurance companies now offer an endorsement which can be added to you policy for a small additional premium. Though the coverage varies by company, most companies will cover:
- A personal advocate who will work with you to help restore your identity. They will guide you step by step through the notification and documentation process
- Money to cover attorney’s fees associated with any lawsuits brought against the insured by creditors as well as fees for the removal of any criminal or wrongful judgments made against the insured
- Lost wages for work missed to meet with attorneys or law enforcement
- Costs for certified mail to all credit bureaus, credit grantors or law enforcement agencies
- Charges for long distance phone calls related to your claim to merchants, creditors, credit agencies and law enforcement
- Free year of credit monitoring effective the date the claim was first reported
Don’t become a statistic. Take the proper measures to protect yourself against identity theft and speak to your insurance agenty about getting identity theft coverage through your home or auto policy.
Sources
- Annual Credit Report
- Fighting Back Against Identity Theft; Federal Trade Commission
Amanda Sykora - Amanda Sykora is a dedicated professional who for the past 9+ years has worked in the insurance industry. Currently she is a sales and ...
