Identity Theft Ė 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 oneís 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:
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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