Over the past month, I’ve spoken with two people who have had their identities stolen. It took them years to recover from the financial damage and regain their good names. Identity theft is becoming more common as the era of information infiltrates our society. Privacy is being intruded upon electronically and through mass mail that contains ever-so-sensitive information.
The FTC estimates that about 9 million Americans have their identities stolen each year. You probably know someone who has had their identity stolen! Identity theft is real. It can happen to you. I’m not asking that you become paranoid, I’m asking that you become prepared. The faster you get identity theft insurance the better. In this article we’ll discuss the various levels of identity theft and what you can do about it. Some solutions are very low cost. You may be surprised!
What are some common ways my identity can be stolen?
These points are from the FTC:
- Dumpster diving. Thieves will go through your trash looking for credit card numbers and other personal information. Be sure to buy a shredder and destroy any personal documents you have. Especially destroy any credit card offers you receive by mail.
- Skimming credit cards. When you’re not looking, crooks will swipe your card in a specialized information storage device designed to steal your number. Try to keep your credit card in sight at all times.
- Phishing. This is when an individual poses as a company online, by phone, or otherwise to obtain your personal information. Do not give out personal information unless you are 100% sure who you are dealing with.
- Changing your address. Your information can be stolen by redirecting it without you even knowing.
- Stealing. If your purse or wallet is stolen, it can result in identity theft very quickly. Be sure to keep a list of phone numbers for your bank and other institutions you can contact if this happens to you.
- Pretexting. This happens when a person contacts financial institutions or phone companies to obtain your personal information. If they are clever enough, they can pose as you and take your identity.
What should I look for when shopping for identity theft insurance?
There are three important elements to consider when you purchase identity theft insurance:
- Prevention: The company needs to take proactive measures to ensure your identity isn’t being stolen. There is not a company out there that can guarantee your identity won’t be stolen, but you need to make sure they are staying on top of things.
- Recovery help: The company needs to ensure that they will help you manage the recovery process if your identity is stolen. This includes providing you with an identity theft specialist who guides you through the process and fills out necessary paperwork to get you back on track.
- Reimbursement: The company needs to reimburse you for a reasonable amount of expenditures related to your stolen identity. For example, they need to cover legal fees and charges.
How much should identity theft insurance cost?
I’ve found the range to be anywhere from $80 to $200, depending if an individual or family is covered. Some popular companies are Lifelock and Zander Insurance.
Remember to shop around and you may find some great deals. Run the company past the Better Business Bureau to make sure they are a trusted name.
Identity theft can happen at any time. Have you been a victim of identity theft? Looking forward to your thoughts in the comments below.
“Insurance Essentials: Identity Theft Insurance” is part of a series onInsurance Essentials: An Introduction To Insurance You Need! I encourage you to read more articles on insurance. I’d also appreciate your comments below so that I might improve this article accordingly. Thank you for your help!
! John wrote two articles for the book: "Budgeting for Groceries" and "How Grocery Stores Work."
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