Picture this. You sit
down one morning to check your online banking account and you see a number of
charges that you don’t recognize—some are even out of state and you have not
been traveling! You also check your credit card statement and find that you
have no available balance because of purchases made that you don’t remember
making.
The sinking suspicion
you feel is correct- you are a victim of identity theft!
Out of every 100,000
people, roughly 67 report an identity theft claim. Identity theft scams are on
the rise and, despite the perception, it is not just the elderly who fall
victim to them. The criminals that want your information and intend to assume
your identity have proven that they will go to any length to get it- some by
stealing mail, some by using internet pop-ups, and some get it from the most
reliable source- YOU. Many identity theft situations can be traced back to the
victim giving out their own information over the phone!
The effects of identity
theft can be horrifying. Your previously well-protected credit score can be
ruined, leading to further financial troubles in the future.
It is extremely
important that we counteract this criminal activity by protecting ourselves.
Here are some suggestions on how to protect yourself from identity theft:
·
Protect your Social
Security Number. Do not carry your
social security card in your wallet and do not print your driver’s license or
social security number on your checks.
·
Protect your passwords. Do not share them with others or write them
down. Be sure to have a different password for each account and do not make the
passwords something obvious like date of birth or your mother’s maiden name.
·
Protect your mail. Opt out of pre-approved credit card
applications by calling 1-800-5-OPT-OUT. Do not leave incoming or outgoing mail
in an unsecured mailbox that is easily accessible to criminals.
·
Review your credit
reports annually. Execute a Security
Freeze to stop criminals from getting new credit in your name.
·
Know the scams. Never give out your personal information over
the phone unless you are certain of who is on the other end. Visit www.noscamnc.gov for more information.
·
Invest in Identity Theft
Insurance. Sometimes even taking
the proper steps to protecting yourself does not always prevent someone from
stealing your information. Identity Theft insurance can be purchased from your
credit card vendors or through your insurance agent and can help to pay for
restoring your personal identity information and reinstate correct credit
report information.
Most insurance companies
now offer an identity theft endorsement that can be purchased for $25 a year or
less.
Every company’s product
is different but here is what identity fraud endorsements typically provide
you:
Coverage for Identity
Fraud Coverage Includes:
·
Attorney’s fees incurred
in defense of lawsuits brought against an insured by merchants or their
collection agencies and removal of any criminal or civil judgments wrongly
entered against you that challenge the accuracy or completeness of data in a
consumer credit report.
·
Lost income as a result
of time taken off work to meet with, or talk to, law enforcement agencies,
credit agencies, legal counsel, or to complete fraud affidavits (up to $500 per
week for a maximum period of four weeks).
·
Loan application fees
when insured must re-apply for loans when the issuing company rejects solely
because of incorrect credit information.
·
Long distance phone
charges to merchants, law enforcement agencies, financial institutions or
similar credit grantors or credit agencies to report or discuss an actual
identity fraud.
·
Notary and certified
mailing costs for completing and delivering fraud affidavits.
If you haven’t taken the
opportunity to add this valuable coverage to your insurance policy- do it
today! Isn’t this worth the $25 bucks a year? Call your insurance agent today!
