|
The Benefits of Identity Theft Insurance
One of the fastest rising crimes in the United States and United Kingdom
is Identity Theft. Identity theft is one of the most often
reported crimes and occurs about three times every minute in America.
In U.K an estimated one hundred thousand cases are committed every year.
Regrettably, identity theft is not unusual phenomenon, particularly
in North America. The majority of people do not even give it a thought. It
does not matter to them whether the crime is committed or not. They will
only be concerned about it if they are victimized by an identity thief.
What is the meaning of Identity Theft? Identity Theft or Identity Fraud is
the deliberate assumption of the identity of another person, generally in
order to have free access to their finances or to use that person's identity
in committing crime(s). Identity theft is the unlawful use of your personal
name, date of birth, social security number together with your financial
and banking information. The Identity Thief will utilize the information
in applying for credit, opening bank accounts or even to find a job.
Identity theft is sometimes used in terrorism, illegal immigration, espionage
or to alter the identity of an identity thief permanently. Identity theft can also
be a way of blackmailing a person by violating the privacy of the person.
The illegal activities of the thief while using the name of the victim will
have serious consequences such as the loss of credit, job or marriage of the victim.
The victims of identity theft are not solely people with great credit. It can
also also be someone who does not have much of a credit history, such as a college
student.
College students are the common victims because their personal information is
readily available, when schools post their grades by using their Social Security Number.
Usually students do not even bother to protect their private information. They
do not scrutinize their financial accounts. Credit card applications
are sent routinely sent in the mail and can easily be intercepted and stolen by
an identity thief.
Identity theft crimes can start simply with a stolen wallet or they may be
organized fraud rings. Identity theft can happen when somebody gets your mail,
your purse is stolen, or your bank statements are stolen. This can be easily
remedied if the thief is arrested early. The banks and creditors will only
ask you to pay the first $50 of deceptive charges.
However, more serious cases of fraud will go on for so many years and will require
more resources to be resolved. In view of this, there is no denying that
there identity theft is dangerous. Everyone should do something
so as to prevent identity theft and protect their personal information.
There are some preventive measures for the commission of the crime. It is
really not easy to keep your identity safe especially in today's world.
You should be aware of fraud and be very careful in sharing any personal
information. Every month, make it a habit to monitor and scrutinize
your statements of account. You should also strictly observe any unlawful
activity with respect to your credit report.
In order that your personal information and pre-approved credit offers will
not fall into the wrong hands, you should use a paper shredder.
The above mentioned measures will serve as precautions for everyone who may
be possible victims of identity theft. Now if you are really serious about
your identity and financial stability, then the best way to protect yourself from
identity theft is to get an identity theft insurance. Many insurance companies are
offering this identity theft insurance which normally costs from $25 to $60
annually.
You should bear in mind that identity theft insurance is not a guarantee
against you becoming a victim. Identity theft insurance will
help you to recover from the losses you incur due to identity theft.
However, your direct monetary losses resulting from identity theft are not
covered by identity theft insurance. Identity theft insurance will provide
the coverage for the reclaiming of your financial identity like the expenses
when making a phone call, reproducing copies; documents are mailed, taking
a leave from office without pay and hiring your attorney.
There are some things to consider before you get identity theft insurance.
· Know what the policy limits are.
· Find out what the deductible is for the insurance policy.
· Identity theft insurance does not cover direct monetary
losses.
· Verify what limits apply and what the requirements are
for coverage, and if the insurance policy covers lost wages.
· If the insurance policy covers legal fees, then verify what
limits apply and if there is a need for the insurer to approve the legal
work.
|
