Each year, millions of people are affected by identity theft. While many believe this problem could never happen to them, the truth is that just about everyone will encounter the issue in some form or another—whether it’s completely small and creates no financial hardship or if it ends in a costly legal battle that seriously jeopardizes your ability to take out a loan or get out of debt. Here are a few things you need to know about what identity theft includes, plus a few tips from our Binford Insurance team on how to keep it from happening to you.
Identity Theft – What You Need to Know
Of course, you need to understand what identity theft is before trying to protect yourself from it. There are nearly two dozen different types of identity theft that most people encounter. This includes everything from having their personal information stolen over the internet to someone they don’t know taking out a mortgage using their name and credit profile.
It also includes much more serious instances, such as someone you don’t know taking on your child’s persona and opening financial accounts under their social security number. Or even something minor like having someone impersonate you online via social media accounts. The possibilities are almost endless, but the feeling of violation is still the same no matter what the scenario.
The Safety of Your Identity
You likely already take steps to keep your identity from being stolen, but it is simply not enough. In fact, it’s likely that your personally identifiable information—such as your name, address, and social security number—are already listed on the dark web for bad people to access.
How is this possible? Data breaches happen to large organizations all the time. Big companies like Facebook, Equifax, T-Mobile, and Panera have all happened over the last couple of years. This means that you really can’t totally avoid theft of your personal details, but you can help minimize the chances of it being used.
How to Prevent Identity Theft
With situations like these, it is nearly impossible to protect your personal information. However, you can take steps to ensure that just because someone has your details doesn’t mean they can use them. Consider signing up for credit monitoring, which allows you to easily detect if there’s been a new inquiry or account opened on your credit file. At a minimum, review your full credit report annually to make sure there are no discrepancies. If you suspect someone is trying to commit identity fraud, contact your local authorities and file a report.
Preparing for the Unthinkable with ID Theft Insurance
You already know the importance of having car insurance, renter’s insurance, or homeowner’s insurance. But what about identity theft insurance coverage? This type of policy helps protect you against an identity theft incident by covering some of the costs associated with clearing your name and fixing your credit profile. Premiums are generally pretty affordable, especially when compared to paying these fees out of your own pocket.
While the idea of having your identity stolen is scary, there are options to help you protect yourself. These tips are just the start of the many things you can do to keep an incident from occurring should a data breach happen. Furthermore, they help give you an idea of what to expect after being notified of a personal data incident occurrence.
Are you ready to learn more about identity theft insurance coverage or how you can help protect yourself? Please contact our Binford Insurance team today to schedule a no-obligation coverage review.
