Leitch Insurance Agency of River Falls WI - For Auto, Home, Farm, Business, Health and Life Insurance

Identity Theft - Part 2

Part 2 is a brief explanation of what can be done to prevent ID Theft. Please see Part 1 for an explanation of what is meant by ID Theft.

While "identity theft" may seem like a trendy new, crime category, the truth is the opposite. ID theft is another form of fraud

To date, personal insurance is not a particularly important tool for protecting against ID theft. The type of loss is not something to which an auto, home or similar policy responds. While homeowner policies do typically protect against credit card loss, coverage is usually just for the modest amount that falls below the minimum liability imposed by federal law (currently $50 per card). The true damage to individuals from ID theft are the costs associated with clearing up the after-effects, such as correcting one's credit history and straightening out various accounts and records. This effort may take years and hundreds to thousands of dollars in legal fees.

Insurance companies may soon develop coverage for ID theft, such as assisting with legal fees or paying costs related to dealing with third parties to correct records. Right now, preventing falling victim to this loss is up to Jane or Joe Insured. What can be done? Here are some suggestions:

Keep your account information and Social Security Number (SSN) safe. One idea: keep home records in a locked file.
Keep details about your various account numbers in a safe place so you can act faster to take care of stolen or lost cards.
Be very careful with on-line transactions. Is the Website you use secure?
Find out the privacy guidelines and safeguards of the businesses and parties you deal with.
Challenge those who request an SSN. Why is that information needed? Can some other information be used as an alternative?
Think about buying and using a paper shredder. Many who steal information do so by going through garbage.
Write companies who send unsolicited charge cards and get off their lists.
Check bank and business statements thoroughly for irregularities. Track down the reason for any unusual transactions or entries.
Ask stores that use credit cards if they transmit the information with a wireless network. If yes, ask what safeguards do they have against airwave theft.
If you ever have a charge card transaction involving an imprinter that uses a carbon set for copies, ask for the carbon or watch the clerk destroy the carbon before it's thrown away.
Collect mail from mailboxes quickly and don't put outgoing mail in your own mailbox for collection by a mail carrier. These practices give thieves an opportunity to fish for checks and private information.

Remember that these are just a few suggestions. Taking steps to minimize the chance of ID theft is a lot of work. That is a major reason that ID theft will continue to be a problem to individuals and businesses.

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