Caleb Markinson asked:




Identity theft insurance coverage is big business for companies looking to profit from consumer fears. Insurance coverage provides consumers with many different ways to pay for losses. Generally, all consumer identity theft coverage policies fall into one of two categories: prevention services and insurance coverage. The problem is best avoided but since no one is one hundred percent invulnerable to identity fraud, insurance provides a nice soft place to land if you do fall victim.

Prevention Services

Credit monitoring, fraud alerts, and consumer counseling are all prevention services that provided when seeking coverage. Most lenders, all three credit reporting bureaus, and many independent companies offer some form of prevention services, but they usually provide this service for a fee. Occasionally, a lender will provide credit monitoring for free as a bonus for using their financial institution.

Typically, prevention services work about the same manner no matter the company. The service allows the company to track inquires and accounts on your credit report and notifies you immediately if something suspicious shows up on your record. Often, if identity theft does occur, the companies that offer insurance coverage will also offer assistance in the form of advice or resources. The fees for these services are customarily charged on a monthly basis and range from less than $10 to around $40 a month.

Insurance Coverage

Insurance companies wasted no time in jumping on the bandwagon by devising policies to provide coverage to identity theft victims. Some policies providing stand-alone coverage for people who don’t own homes or don’t want to include the protection with their homeowner’s policy while other policies roll the client’s homeowner policy and identity theft insurance into one. The important thing to know if you are a consumer interested in coverage is whether or not you already are covered. Read your homeowner’s insurance policy to make sure that identity theft is not already covered before purchasing additional insurance that you don’t need.

If you find that you are in need of insurance, you can rest easy knowing that premiums for coverage are very inexpensive, only about $25 to $50 a year for coverage of about $15,000 or $20,000. The policy will cover any out-of-pocket costs associated with identity theft above the deductible value.

Keep in mind that although the average victim only pays about $500 in fees and lost wages, this figure can sometimes be much larger in special circumstances. Consider your needs carefully and talk over the extent of coverage you should invest in with your insurance agent.

Ben

Daryl Campbell asked:




When you hear about some fairly new identity theft scam like the pay at the pump con or the parking violation scam that was unveiled in Iowa not too long ago, other forms of theft like phishing seem almost ancient in comparison.

But it still works. How effectively? In the two years this specific international scam was unveiled identity thieves have stolen close to two million dollars from Wells Fargo and Bank Of America customers.

That came to an end recently when a joint sting operation code name Phish Phry carried out by the FBI and Egyptian law enforcement officials nabbed one hundred suspects fifty three of them in the United States.

Phishing occurs when a scammer sets up a dummy website meant to look like the genuine article. They then spam out urgent emails telling the intended victim that something is wrong with their account and the only way to fix it is by clicking the link contained within the email. Once someone does they are taken to the fake site and asked to provide the “right” information. After the victim does just that they get cleaned out money wise by the thieves. It is phishing in the sense the identity thieves are not looking for a specific target. They continuously spam out thousands of emails hoping that some one will take the bait.

And someone always does because they do have an account at that financial institution and the email is written in such away that it gets their emotions (normally fear) racing before they fully comprehend what is happening. It is also understandable that since the internet has become such an integral part of our lives that it would stand the reason your bank would contact you that way.

They won’t but phishers are gambling that you will not know that. This particular con was no different in that aspect.

However the expertise level these folks are operating on is something to be concerned about. Keith Bolcar is Acting Assistant FBI Director in Los Angeles, “The sophistication with which Phish Phry defendants operated represents an evolving and troubling paradigm in the way identity theft is now committed. Criminally savvy groups recruit here and abroad to pool tactics and skills necessary to commit organized theft.”

That means they are getting smarter and smarter about what they are doing. That’s not hard to figure since there are a number of things working to their advantage. Things such as there are no full proof ways to avoid becoming a victim of identity theft and of course all the new technology available to make the scam more successful.

The good news it appears law enforcement is also getting smarter and smarter in the way it combats identity theft. No doubt they have some catching up to do but it’s nice to see a victory like this from time to time.

Claude