Identity theft is perhaps the quietest, most insidious type of crime. Someone gets ahold of your personal data and uses it for a variety of fraudulent purposes, and you don’t have any idea that it’s happened until the effects begin showing up in your credit report or other financial records.
A nationwide study by California-based Javelin Strategy and Research found that between 2008 and 2009, the number of identity fraud victims in the United States increased 12 percent to 11.1 million adults. At the same time, the total annual fraud amount increased by 12.5 percent to $54 billion. (Source: https://www.javelinstrategy.com/news/831/92/Javelin-Study-Finds-Identity-Fraud-Reached-New-High-in-2009-but-Consumers-are-Fighting-Back/d,pressRoomDetail)
Closer to home, Mesa County is now dealing with the consequences of having data that was posted in a non-secure domain. Whether it results in information theft or not, the consequences can be brutal.
Many insurance companies now offer stand-alone policies or add-on endorsements for homeowners coverage to help protect people from the effects of identity theft, says Carma Brown, insurance manager for Home Loan Insurance Co. in Grand Junction.
Many insurance companies now offer stand-alone policies or add-on endorsements for homeowners coverage to help protect people from the effects of identity theft, says Carma Brown, insurance manager for Home Loan Insurance Co. in Grand Junction.
Identity theft insurance typically doesn’t compensate policyholders for losses, Brown says. Instead, the coverage helps policyholders pay the various costs of restoring a stolen identity. Often, victims of identity theft must get new drivers licenses, passports, and other documents, which all come at a cost. Victims also must regularly monitor their credit reports to ensure that the identity theft has been resolved.
One of the biggest headaches with resolving identity theft is notifying all of the federal, state, and local agencies that might see some effect from the theft. Such notifications are time-consuming, as is regular monitoring of credit reports. Brown says the most desirable identity-theft policies provide policyholders with personal assistance in alerting credit card companies, credit bureaus, the Social Security Administration, and other agencies about your identity theft. Problems created by identity theft can take years to resolve.
The time savings of having assistance in resolving your case is worth the price of a policy, Brown says, not to mention the expertise of the handler who works on your case.
“If you have a person helping you who does this for a living, that is priceless,” Brown says.
Brown suggests that anyone buying identity theft insurance make sure the policy provides personal assistance with resolving problems caused by the theft. She also recommends policies that cover all members of the family, even children. She says children are a popular target for identity theft because it can take years for the theft of a child’s information – such as a Social Security number – to be detected.
Premiums for identity theft insurance usually run about $50 per year for a family, Brown says. Before buying stand-alone policies, check to see whether you can add an equally effective endorsement to your existing homeowners insurance for a lesser price. But if you’re considering buying identity theft coverage, do it before you find out that your identity has been stolen. Brown says policies aren’t retroactive and must be in effect before you find out that you have a problem.
For clients worried about the possible ramifications of the county's potential data release and your brokerage accounts, know that your custodian has taken precautions so that the county data is not sufficient to enable someone to login to account information.
For clients worried about the possible ramifications of the county's potential data release and your brokerage accounts, know that your custodian has taken precautions so that the county data is not sufficient to enable someone to login to account information.
The Federal Trade Commission has assembled a website containing exhaustive information about identity theft, how to avoid it, and what to do if you think your identity has been stolen. The site is at http://www.ftc.gov/bcp/edu/microsites/idtheft// .
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