Identity Protection Insurance A Help On Black Friday

Sheila Trauernicht said the company attributes the success of the product, in part, to consumer awareness of the need for identity fraud expense reimbursement coverage and continued innovation of the product.

I.I.I. said insurance identity theft protection and resolution services are included in some homeowners and auto policies at no additional cost.

Generally the service provides consumers with a fraud specialist to assist and guide them through the process of restoring and protecting their identity.

I.I.I. noted that some companies include identity theft coverage as part of their homeowners insurance policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy.

This coverage, said I.I.I., provides the customer reimbursement for the expenses associated with the identity and credit restoration process including phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer).

Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I., said thieves in crowded stores can steal wallets and checkbooks and use information from identifying documents to impersonate a victim, steal from bank accounts, establish phony insurance policies, or open unauthorized credit card accounts.

I.I.I. said according to Federal Trade Commission data, in 2008, 1.2 million identity theft and fraud complaints were filed with federal, state and local law enforcement agencies and private organizations.

In addition a survey earlier this year by Javelin Strategy & Research found that the number of identity fraud victims has increased 22 percent from 2007 to 2008 to 9.9 million adults. The survey report said historically, higher rates of fraud occur during economic downturns.

I.I.I. warned that thieves can also use email inquiries purporting to be from financial or other online organizations seeking sensitive account information.

Also, "no-swipe" credit cards, which transmit account and user information through a radio frequency, makes it possible for identity thieves to use an electronic device to capture the information. And it mentioned the continued threat of criminals "rooting around in people's garbage to collect financial information."

Identity theft victims, I.I.I. said, are often left with lower credit scores and spend months getting their credit records corrected. Frequently these victims have difficulty getting credit, obtaining loans and, in some cases, even finding employment.

More than half of all identity theft victims discover that their identity was stolen by monitoring their bank and credit card accounts, according to the FTC.

I.I.I. advised that consumers should limit the amount of credit cards and personal information carried in a purse or wallet, guard credit cards when making purchases and shield their hand when entering ATM codes. The I.I.I. said credit card and ATM receipts should not be tossed in public trash containers or left where they can get stolen.

Consumers, I.I.I. advised should monitor their accounts and order a copy of their credit report from each of the three major credit bureaus are Equifax, TransUnion and Experian.

I.I.I. suggested setting strong password protection for credit card, bank and phone accounts, shredding sensitive material, keeping personal information secret.

Besides Travelers, I.I.I. said the following insurers offer identification protection: Allstate Insurance, American International Group, Chubb Group of Insurance Companies,
Encompass Insurance, Erie Insurance, Farmers Group, Inc., Fireman's Fund, Liberty Mutual, Metlife,
Nationwide and West Bend Mutual.