It’s evident that many people are going through financial hardships as cases continue to rise during these unprecedented times. Due to the rising cases, many aspects of our daily lives continue to be online whether it’s working, having a meeting or ordering items for our homes. With credit card transactions happening so often, it is essential to educate oneself on identity theft and how to remain protected. One of these ways is through identity theft insurance. What is Identity Theft?According to Wikipedia, identity theft is the use of someone else’s identity in a deliberate way to gain a financial advantage or obtain benefits, or other credits in their name. This then causes a disadvantageous loss to the person. The victim can be affected negatively, especially if they are made responsible for the loss. Identity theft occurs by using the victim’s name, identifying number, or credit card number without permission. The term “identity theft” was coined in 1964. The definition of identity theft is statutorily prescribed throughout the United States as the theft of personally identifiable information, generally including a person’s name, date of birth, driver’s license number, social security number, bank account or credit card numbers, PINs, electronic signatures, fingerprints, passwords, or any other information that can be used to access a person’s financial resources. It is very challenging to determine the link between data breaches and identity theft. This is because identity theft victims generally do not know how their personal information was obtained. Identity fraud is often a result of but not necessarily the consequence of identity theft. Types of Identity Theft There are five types of Identity Theft:
Criminal Identity Theft Criminal identity theft is when someone poses as another person when apprehended for a crime. Certain times, criminals will obtain state-issued identity documents using credentials stolen from others. In other instances, they present a fake ID. Financial identity theft Financial identity theft is described as using someone else’s identity to obtain credit, goods and services. This type of theft is the most common. This is when someone wants to gain economic benefits in someone else’s name. This includes getting loans, credits, goods and services, and claiming to be someone else. Identity Cloning Identity cloning is using another’s information to assume his or her identity in daily life. In this situation, the identity thief will impersonate someone else to conceal their own true identity. Examples of this include people hiding from creditors, illegal immigrants hiding their illegal status, and those who want to become “anonymous” for personal reasons. Another example of identity cloning is posers. This describes people who use someone else’s photos and information on social networking sites. Medical Identity Theft Medical identity theft is described as using someone else’s identity to obtain medical care or drugs. The term was coined by Pam Dixon, the founder of the World Privacy Forum. For the first time, she defined the crime and made the plight of the victim’s public. In the report, the definition of the crime is that medical identity theft occurs when someone gets medical care under another person’s identity. Through this means, theft is also widespread. If a thief has your insurance information and/or your insurance card, they can get medical attention posing as yourself. Child Identity Theft Child identity theft happens when another person uses a minor’s identity for the impostor’s gain. The impostor can be a friend, a family member, or even a stranger who targets children. Children’s social security numbers are valued because they do not have any information associated with them. Thieves can obtain driver’s licenses, establish lines of credit, or even buy a house using a child’s identity. Identity Fraud Insurance Identity theft happens when someone steals your personal information or uses your credit accounts without your permission. At risk information includes: Social Security Numbers, date of birth, bank account numbers, credit card numbers, login/password credentials, name and address. Identity fraud happens when this information is used to make fraudulent purchases or withdrawals, create new accounts (credit cards, bank, phone, utilities, and loans) or change existing accounts. What to consider before making the decision? According to the National Association of Insurance Commissioners the following list should be considered when researching your insurance policy:
The Importance of Identity Theft Insurance Knowing the proper details of identity theft will help you understand why fraud insurance is so crucial. The identity theft insurance plan through SmartCredit is a great tool that is offered. You can use the Action button in your alerts to quickly react to identity theft. You can use your insurance claim reimbursement, if necessary. The Action Button:
The $1 million Identity Fraud Insurance* has the following:
*Activation required after enrollment. The post What is Identity Theft Insurance? appeared first on SmartCredit Blog. from SmartCredit Blog https://blog.smartcredit.com/2020/10/14/what-is-identity-theft-insurance/ Via https://smartcredit1.tumblr.com/post/631945480747745280
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