“All we need is your social security number and we can submit it.” 

How many times have you heard or seen that in an application for credit? How many times have you applied for credit cards on your smartphone or tablet, trusting that your personal information will not be stolen and used? 

That fear of identity theft is not unfounded. According to the National Council on Identity Theft Protection, almost half of all U.S. citizens became a victim of identity theft in 2020. In 2021, 5.7 million reports of identity theft and fraud were reported which is an increase from 4.7 million in 2020. Victims lose an average of $500 but that cost to victims is growing as people are digitally dependent. The Federal Trade Commission (FTC) had over 1.4 million cases of identity theft in 2020. ***

If you are a consumer and have even one credit card or ATM card, you could become the victim of Identity Theft. No matter how strong the security walls are, a thief could break through. These thieves come from all over, Russia, China, Africa, and the coffee shop patron down the road. 

These identity theft services can come from several resources: 

1. Identity Monitoring: This alerts you to possible credit issues or breaches that you may not see on a credit report. An identity monitoring service might find your stolen personal data available for sale. Your personal information, a change of address request, an unauthorized payday loan application, court records that show crimes falsely reported in your name and attempts to take over your existing credit cards or bank accounts all are ways to use your identity for criminal purposes.

2. Credit Monitoring: A credit monitoring service can notify you when there are changes in your credit information. So, should your credit score drop, or a new credit card account appears on your credit report, the credit monitoring service alerts you. Credit monitoring services detect changes in the credit limits or account balances on your credit reports, Adjustments to your credit score, 3. Changes on your credit reports with Equifax, TransUnion, or Experian, and unauthorized loan or credit card applications using your personal information. Based on this immediate information, you can take legal action. If needed.

4. Identity theft recovery. These services assist you after the theft of your identity. It helps you stop any more damage to your credit and bank accounts that have been breached. Identity recovery providers typically 7instruct you on how to repair credit report damage from identity theft on your own, send identity theft reports and disputes to the credit bureaus on your behalf, and contact your creditors for you to close and dispute fraudulent accounts in your name. 

5. Identity theft insurance. This covers the costs of repairing your identity after you’ve become a victim of fraud. It can be quite expensive to repair the damage to your identity. Identity theft insurance may not reimburse you for everything, but it definitely can help you get your good credit rating back.

Identity theft can destroy your credit rating, clean out your bank accounts and cause health issues from the stress involved in trying to rebuild your credit score and recover your money. It is imperative, these days, to get identity theft insurance to protect you, your family, and your business.   

Lindquist Insurance offers cyber liability insurance that can protect you from ransomware, data loss, legal fees, credit breaches, and other liabilities. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. 

We serve the Annapolis, MD, and Frederick, MD areas.

*** Identity theft statistics can be found on the National Council on Identity Theft Protection website .