What is Identity Theft?

“Identity theft” is defined by the Fair Credit Report Act as “the use or attempted use of an account or identifying information without the owner’s permission.”

Why do you need Identity Theft Protection?

Nearly 1000 people every hour have their identity stolen in the North America. This means you are someone you know may have been a victim. This crime can ruin your credit and disrupt your normal way of life. It can put you in jail for crimes you never committed, while the thieves lead parallel and often luxurious lives at your expense. To make matters worse, repairing the damage to your name, credit and reputation can takes years.

No matter how hard you try to protect your personal information, the criminals are working even harder to get it. They are constantly looking for ways to beat the system and rip you off. How do you prevent a restaurant waiter from stealing your credit card number, a healthcare provider receptionist from stealing your social security number, or a cashier from stealing your driver's license number. Not only can your bank accounts and credit cards be compromised with this information, but so can your health insurance, your driving records, your name, address and so much more!

As you can see, identity theft protection is not just about your credit cards. The five common type of identity theft include driver's license identity theft, social security identity theft, medical identity theft, character/criminal identity theft and financial identity theft. There are currently 10 million identity theft victims in North America. Some experts expect the problem to get 20 times worse in the next 2-3 years. With victims spending an average of $1,500 to recover that's a total $50 billion and it's expected to get 20 times worse in just a few years. The path of financial destruction ahead of us boggles the mind.

There really is no reason why one should not have Identity Theft Protection

Many purchase auto, life and health insurance because one day we will need it. The same can be said (and will be said) about identity theft insurance. This issue has not reached the conscious of the masses but it soon will. Identity theft crimes are constantly being reported in the media. Monitoring your credit report is not enough. One also needs legal counsel and a restoration service ready to jump into action at a moments notice.  The consumer now has a cost-effective way to get the protection they need for about $36 a month. It provides the three levels of protect you need at a fraction of the cost. 

 

 

 

Businesses can be liable for losing data and need protection because

  • FACTA, (The Fair and Accurate Credit Transactions Act), an FTC rule that went into effect in June 2005
  • This ruling can shut down non-compliant companies (large or small)
  • Losing data can make companies liable to an unlimited amount in damages
  • Companies can face lawsuits from employees and customers
  • Businesses can face fines up to $1,000,000 and up to 10 years in jail

It makes sense for companies to offer identity theft protection as a company benefit. The coverage protects them and their employees. Plus, it also lowers the company's liability.

Identity thieves take your information and use it to:

  • Gain access to your credit card account, bank account or brokerage account
  • Open new credit cards in your name
  • Buy a new car in your name
  • Take out a loan in your name
  • Get healthcare services using your social security number
  • Get an out of state driver's license and put all their unpaid traffic tickets and warrants in your name

Tips on preventing identity theft

  • Install security software on your computer and keep it updated
  • Avoid opening attachments in unsolicited emails
  • Use caution when considering clicking on a pop-up ad
  • Enable encryption on home network wireless routers
  • Shop only on secure web sites. They begin with "https" and the padlock icon will appear in your browser
  • Do not store your financial information in an account on a web site
  • Do not give your password or account number to update it or restore it, if you received an email request to do so. Go directly to the site or call them to verify
  • Use debit cards like a credit card and sign for purchases instead of using your PIN code
  • When using a credit or debit card block other from viewing your numbers
  • If possible in your state put a freeze on your credit reports. This stops any credit activity without your consent
  • Give your social security number only when it's absolutely necessary

 

Additional Resources

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