After your identity is stolen, there is a LOT you'll need to clean up. This includes having to report the theft, close or freeze compromised accounts, update passwords, negotiate with creditors, and regularly monitor your credit for any unauthorized activity. All of this can cause significant stress while you attempt to restore your credit and recoup any money you’ve lost.
Sure, there are plenty of online services promising to help prevent your sensitive personal data from being stolen in the first place – but typically, once identity theft occurs, you're on your own. This is where identity theft protection comes in.
Identity Theft: A Growing Problem
Identity theft is one of the fastest-growing crimes, especially in Florida. This is due to the state's large, diverse, and often transitory population; the year-round influx of tourists; a considerable elderly population; and widespread online financial activity. A criminal may use your personal or financial data, such as a social security number, birthdate, credit card number, checking account number, etc., to:
- Make purchases using your debit or credit cards
- Open new credit cards in your name
- Steal your tax refund
- Claim any government benefits due to you
- Impersonate you to hide their identity or to obtain employment, medical services, or for some other nefarious purpose
What is called synthetic identity theft now makes up the vast majority of reported identity theft incidents. For example, thieves may obtain and use a stolen social security number to create a whole new identity, using a different name, address, and phone. Children, the elderly, and homeless people are often targeted. This type of identity theft can be much harder to detect because the person is entirely made up – although the debt is tied to a very real social security number. Then, too, the rise of AI helps criminals create more believable scams in an effort to steal your identity.
It’s Not Your Fault!
Even if you do everything right, your personal data can still end up in the hands of criminals. This happens when thieves target businesses who keep your sensitive data among their records. Thieves can gain access to doctor's offices, retailers, schools, hotels, airlines, or other organizations via break-ins, either in person or via cyberattack. The thieves may then use your data themselves or may sell it on the dark web.
For example, and most notably, Equifax (one of the three main credit bureaus in the U.S.) suffered a massive data breach in 2017, exposing the social security numbers, birthdates, driver’s license numbers, etc. of nearly 150 million consumers throughout the nation. When data breaches like these occur, they are entirely outside your control – and yet, they leave you and your bank account exposed.
So, What Is Identity Theft Protection?
Unlike services designed to help prevent identity theft, this is a type of insurance. It provides help with restoring your credit after you've been a victim of identity theft. It can also cover certain expenses associated with reclaiming your financial identity and repairing your credit rating.
For example, with identity theft protection offered by Florida Peninsula Insurance Company, you get:
- A thorough damage assessment
- Access to a consumer fraud specialist who works with your creditors
- Managed repair and monitoring of your credit records
- Restoration of your credit to its pre-fraud condition
- Up to $25,000 in reimbursed expenses
Covered expenses are those incurred in the service of restoring your credit – such as attorney fees, lost wages, office expenses, loan reapplication fees (if the first application was denied due to identity theft fraud). It does not compensate you for the money stolen from you through identity theft fraud.
The personal assistance available with this insurance can be invaluable should you find yourself a victim of identity theft fraud. Just the thought of having to negotiate with your creditors, monitor your credit records, and restore your credit rating can seem incredibly daunting – especially since discovering you’re a victim of identity theft fraud can be an intensely emotional and stressful experience.
Be Prepared for When Identity Theft Happens to You
Identity theft fraud is incredibly prevalent, especially in Florida. As more sophisticated cyberattacks lead to significant data breaches of otherwise trustworthy organizations – potentially exposing the sensitive data of many Floridians to identity thieves – planning ahead is critical. It’s no longer enough to avoid public cash machines, refrain from making purchases on unsecure websites, or not clicking on suspicious email links. You should really put in place now the help you’ll need to restore your credit after identity theft fraud occurs. Don’t wait until it happens to you.
Florida Peninsula Insurance Company’s identity theft protection can help. To find out how to add this coverage to your current homeowner’s policy, contact your Florida Peninsula agent now. If you aren’t currently insured with us, get your online quote now
