BUSINESS & FINANCE :: AUGUST/SEPTEMBER 2007
Identity Theft – How Will You Restore Your Good Name?
Identity Theft: What is it?
When someone posing as you fraudulently takes over an account or opens an account in your name.
The Federal Trade Commission says that as many as 1 in 4 households has been victimized by identity thieves in the past 5 years*.
Identity Theft: Misconceptions
One statement that is usually made about identity theft is actually correct but not fully thought through: “I use a credit card, so I won’t be responsible for the damages or added debt”. You are not usually responsible for the debt but lack of protection or a proactive defense plan can cost you dearly with the “transparent” expense of identity theft, which is the countless hours trying to restore your credit. A recent study shows that the average identity theft victim will spend an average of 600 hours recovering from identity theft – often over a period of years**. Many times the victim resides in one state, the thief in another and then the information will be sold to someone in another state, leaving the victim untold hours trying to unravel the facts of the crime.
Other misconceptions with someone who has yet to struggle with the outcome of identity theft is the fact that they believe it “Doesn’t matter if I become a victim”, or “I have nothing - so what do they think they will really get” or “My credit is perfect / My credit is less-than-perfect”, or last but not least - “It won’t happen to me”. These statements or thoughts can have an impact in the event of identity theft to the unknowing consumer usually finding out that they’ve become a victim when they apply for a mortgage or other type of loan, only to be turned down.
Identity Theft: How it Occurs
Identity theft has become the fastest growing crime in America, effecting 10 million Americans last year and 27.3 million over the past 5 years*. Chances are that you know or are familiar with someone that has been a victim. Despite all of the effort you make to protect yourself against identity theft – identity thieves are very adept at gaining access to your personal information:
- They steal sensitive information from businesses
- They steal your personal mail *They “surf” through trash at home and businesses, other wise known as “dumpster diving” *They “phish” through internet offers
- They “skim” your information at retail establishments during a transaction by capturing your information on a data recording device
- They fill out “change of address” forms to divert your mail to their desired location
- They, also, “pretext” you, by calling you and pose as a business and tell you that they “need you to validate who you are by giving us your personal information.”
More than half of all identity theft is committed by criminals who have established relationships with their victims, such as family members, roommates, neighbors or co-workers, according to Federal Trade Commission documentation.
Identity Theft: How They Use Your Information:
Once your personal information has been obtained, identity thieves will then use it to open new accounts, establish cell phone service, create fraudulent bank accounts, write bad checks, counterfeit checks, open and “max” out” credit cards, drain your savings accounts and use up all of your lines of credit. If caught, they could even give your name to the police, adding even more frustration, for you to prove who you really are. As noted earlier, you’re usually not responsible for any of the opened credit but trying to shut down fraudulent accounts can be very time-consuming and overwhelming. As you move through the process to re-establish your identity, you’ll find that all of the recently opened and unpaid accounts will have a negative impact to your credit file and score until you can prove and restore your good name.
Identity Theft: Ways to Protect Yourself
Although there are no solutions to fully protect against identity theft, reviewing your credit bureau report, protect your Social Security number, select intricate passwords, putting all personal information away at home, shredding all personal, bank statements or other financial documents before throwing away, shredding all credit card offers and considering insurance and/or a monitoring service in the event this happens to you. 52% of victims discovered fraud by monitoring their accounts*. Things to keep in mind and note while shopping for insurance:
- What is the amount of coverage?
- What is the amount of deductible?
- Does it cover lost wages (if so, what is the daily limit? Maximum limit? Does it have a separate deductible?)
- What exclusions apply to the coverage? *Does it provide a service or personal counselor to assist in resolution?
Quick detection of identity theft is a key component in saving you valuable time and money. If detected early enough (usually under 5 months) the average loss to the victim is $0 dollars and under 10 hours spent to restore your credit*.
Nationwide offers a comprehensive Identity Theft coverage that can be added to your Nationwide home or car insurance policy for pennies a day. Nationwide recognizes identity theft victims need not only financial relief but also expert assistance. Our coverage is designed to save you time, money and hours of frustration by performing the work necessary to recover your good name. When adding Identity Theft coverage to our homeowner’s policies, you can also opt in for our complimentary daily credit monitoring service, which comes with one free credit report. Many financial institutions charge upwards of $180 annually for this benefit. Call our office @ 302-731-0044 to find out how you can benefit from this valuable coverage.
“The more you check your credit, the quicker you’re going to detect if you’re a victim of identity theft, so credit monitoring is useful” Source: Beth Givens, Privacy Rights Clearinghouse, CBS Marketwatch, August 4, 2003
“Identity theft insurance from a reputable company is a “good bet” – it’s a cheap way to cover potential losses” Source: Jay Foley of the Identity Theft Resource Center, a non-profit, that works with identity theft victims.
*Source: Federal Trade Commission: Identity Theft Survey Report – September 2003
**Source: Identity Theft Resource Center, “Identity Theft: The After-math” – 2003
Lisa Broadbent-DiOssi is celebrating her 20th year with Nationwide Insurance and Financial Services as an agency owner. She is currently the President of the National Association of Insurance and Financial Advisors of Delaware (NAIFA – DE) and Past President of the National Association of Insurance and Financial Advisors of New Castle County (NAIFA – NCC) and current National Director of Moderator Training for Leadership In Life Institute (LILI). The Broadbent name has proudly served New Castle County through 3 generations of insurance and financial needs and will be here for you for many more to come.
There are two locations to better serve you: 20 Polly Drummond Hill Rd, Newark, DE 19711 or 715 Greenbank Rd, Wilmington, DE 19808 – both just off the Kirkwood Highway.
