For most people who use the internet frequently, identity theft is a real possibility. Studies by the Federal Trade Commission report that every year hundreds of thousands of individuals are the victim of the cyber crime. Typically these thefts are relatively minor. However, in ten percent of all cases, cyber criminals made off with at least $10,000 in cash or goods. Furthermore, the damage to one’s credit as a result of identity theft can be irreparable.
Statistics show that more than half of all victims have no idea when or how their personal information was purloined. For the less technically inclined, this makes identity theft all but an inevitability. Yet the consequences associated with identity theft don’t have to be. By purchasing ID theft insurance, individuals can quickly restore their finances if and when an attack occurs, letting the insurance company compensate and assist you with the recovery of funds.
Depending on the policy, identity theft insurance provides the customer with a fraud counselor and specialist to restore your identity. Many policies offer to cover a portion of your financial losses until the stolen money is restored. This reimbursement can also cover the variety of legal and filing costs associated with recovering your identity, such as notary and mailing costs, lost wages, and attorney fees. Some homeowner insurance policies include identity theft protection in their package. Those with existing homeowner insurance policies should check with their provider to see if identity theft protection is included or sold as a separate policy.
Identity Theft Insurance Scams
Buyers of identity theft insurance should be wary of scams on the internet that offer little protection when identity theft occurs. These policies will typically deny any claim due to user negligence, claiming the victim did not properly secure their computer. A legitimate identity theft protection plan will cover the individual regardless of how the theft occurred. Generally, anyone looking to purchase identity theft policy should verify the insurer with a reputable ratings organization such as AM Best before signing up.