Idenity Theft Insurance
More than 100,000 people in the UK are affected by identity theft every year, according
to the Home Office.
ID theft means your personal information is obtained by someone else without your
knowledge.
The results can be devastating.
Once thieves have your information, they can open new credit cards or bank accounts
in your name and run up debts, take out loans or apply for a new passport or identity
document, and use your identity as a cover for criminal activity.
Fraudsters may also apply for social security benefits in your name or give your
name to the police if they get arrested and if they are released on bail, any future
arrest warrants will be in your name.
The most common form is account takeover, where criminals get access to credit cards
and/or accounts that you already have and spend on those accounts.
With the rise of identity theft, banks, insurers and other institutions have started
to offer ID theft insurance.
If you take out this cover and your identity is stolen, the insurer will help you
deal with problems that arise and get your life back on track.
If you think you would struggle to cope without access to your money if you were
to lose your credit or debit cards or wouldn’t know what to do if your identity
was stolen, identity theft insurance could be well worth having.
Policies generally cover you for the expenses you might incur if your identity is
stolen. These might include anything from legal fees for defending criminal charges
associated with identity theft; telephone calls; postage; or rejected loan application
fees and lost wages if you have to take time off work to reclaim your identity.
So think about whether you could afford to pay these expenses if you did not have
insurance.
You will pay a monthly or annual fee for your identity theft protection policy,
normally by direct debit.
Most policies include access to your credit report and
will notify you if any changes are made to your report – such as a loan being taken
out in your name. If you start becoming concerned that you are a victim of identity
theft – or have evidence that you are - your insurer will allocate you an identity
theft expert to help you with your case. They will be able to answer any questions
you have and help solve issues arising due to your stolen identity.
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