In today’s world, everything is online and the internet is full of unscrupulous hackers and cybercriminals. It can be difficult to realize that you are a victim of identity theft as it often is happening for quite some time before you come across anything that would raise a red flag. There are a number of things you can do however to prevent yourself from becoming a victim. Here is what you need to know.
What is identity theft?
Identity theft is a crime where someone’s personal information is used by another person, without permission, with the intention to use it to commit fraud. This can come from numerous documents including your social insurance number, your driver’s license and even credit cards.
If your identity is stolen, the person who committed this crime can use your information to open up credit cards and other accounts – racking up thousands of dollars in debt in your name. They could even use this information to commit a crime, which would give you a criminal record.
How much does identity theft cost?
When a person steals your identity, they could rack up thousands in debt however the average amount criminals will spend is around $1,100. But even though this is not a lot of money it could cost you in other ways once you realize it’s happened to you.
It can take you time – up to 200 hours – to recover your identity once it’s been stolen. This could include taking time off work to meet with the appropriate authorities or making phone calls with your credit card companies to cancel or close the appropriate accounts.
It could also cause long-term damage to your credit score as chances are someone who steals your identity is not going to pay the bills for the money they spend. When your credit card bills are not paid, it will negatively impact your credit rating. This can take years to fix, and it could cost you more in terms of borrowing rates when you legitimately do want to obtain credit or finance a purchase.
How many people will experience identity theft?
In the year 2020, it was estimated that about 1 in every 5,000 people experienced some level of identity theft, which is an increase of 809% between the years 2010 and 2020 in the rate of identity theft.
How can you protect yourself against identity theft?
Under your homeowner’s or renter’s insurance policy you may be able to add identity protection. In the majority of cases, you cannot get a standalone policy for identify theft – it will have to be attached to another policy.
This coverage can help with any legal fees you may incur while fighting an identity theft case. It may also help with identity restoration consultants, which can be helpful when trying to restore your credit score and getting your identity back.
This additional coverage usually costs anywhere from $50 – $150/year, depending on how much coverage you’d like to have. You may have to pay this premium all up front, or it could be added to a monthly payment plan if that’s how you pay your insurance. You will want to talk to your insurance broker to make sure your policy has the coverage you need, and what will benefit you the most.
Contact ICD Insurance today.
Identity theft coverage has the potential to save you thousands of dollars, not to mention saving you time and frustration should you ever become the victim of identity theft. Call us today to speak to a broker.