Protect Yourself From Identity Theft
By: John Luttrell, account executive, Smith-Feike-Minton Insurance

Identity theft is a growing threat to people like you and me every day.  The United States Department of Justice estimates that up to 700,000 people are victimized every year by identity thieves.  The average victim incurs $1,000 in out-of-pocket expenses and spends more than 175 hours working to restore his or her good name. Despite all of our sincere efforts to manage personal information and to keep it private, skilled thieves have found ways to gain access to our personal data through many everyday, seemingly harmless activities.

How Identity Theft Occurs

Some of the ways that identity thieves can obtain our personal info are:

•    Stealing wallets/purses with identification, credit cards & bank cards
•    Stealing mail
•    Changing your mailing address to divert mail to another location
•    Rummaging through trash – at home or at work
•    Fraudulently obtaining credit reports
•    Obtaining your personal information from the internet
•    Business record theft – stealing info from files where you are a customer, employee, patient or student; bribing another employee who has access to your files or "hacking" into electronic files

After an identity thief obtains information, the data is utilized in different ways. Below is a list of the most common identity theft practices:

•    Changing  the  mailing address of the victim so that no one knows about all of the charges going onto the credit cards
•    Opening new accounts and not paying the bills, therefore causing the victim to receive a delinquent credit report.
•    Establishment of new phone or wireless services
•    Opening a new bank account and writing bad checks on it
•    Filing for bankruptcy under the victim's name to pay debts
•    Using counterfeit checks or debit cards to drain a victim's accounts
•    Buying a new car by taking out car loans in the victim's name
•    Giving a victim's name to the police when arrested and when the victim does not arrive for the court date, a warrant is then issued in the victim's name.

How to Minimize Your Risk

It is virtually impossible to keep all of our personal information private, but here are a few helpful hints to minimize our risk of identity theft in many everyday situations and transactions.

•    Order a copy of your credit report from each of the three major credit bureaus
•    Check them for accuracy and make sure all items were approved by you
•    Use passwords on your accounts
•    Secure personal information in your home
•    Check into security procedures at your workplace

The three major credit bureaus and phone number you can call for your credit report:
•    Equifax – for reports: 800-685-111;  to report fraud: 800-525-6285
•    Experian – for reports: 800-397-3742; to report fraud: 800-397-3742
•    TransUnion – for reports: 800-888-4213; to report fraud: 800-680-7289

Identity Fraud Expense Coverage

Identity Fraud Expense Coverage is available on most homeowner insurance policies as an endorsement for minimal cost.  The coverage can pay for most of the out-of-pocket expenses you incur to correct information in credit reports, remove fraudulent purchases from credit card bills and undo much of the damage caused by the criminal.  Coverage is available to help with attorney's fees to defend lawsuits brought against you by merchants, financial institutions or collection agencies; remove criminal and civil judgments wrongly entered against you and to challenge the accuracy of completeness of information contained in your consumer credit report.

Coverage is also available for loan reapplication fees because of application rejections due to identity fraud and the costs associated with certified mail and notarizing affidavits.  The coverage may also include loss of income if you need to take time away from work to attend hearings, visit attorneys or deal with other issues arising out of identity theft.  Many insurance companies now have a recovery helpline that is staffed with counselors to help you through the process of your identity theft claim.

A review of your current policy to make sure you have the Identity Fraud Expense Coverage is a good idea.  An annual review of all your insurance policies is an excellent way to make sure you are up to date on all of the new coverage available and how they might benefit you and your family.