Insurance companies to protect against identity theft |
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Published
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Mon, 11 Apr 2005 01:00
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Of late a growing number of people are becoming victim of identity theft. But one need not worry as insurance companies such as HSBC, Saga, More Than and HBOS offer services that protect people against identity theft or fraud.
In fact Capital One has started an advertising campaign to promote identity theft insurance after star of the TV comedy “The Office,” Ricky Gervais, almost became a victim of such fraudulent activity.
| Last year alone, around 50,000 cases of identity theft were recorded; an increase of 17 per cent as against 2003. And if experts are to be believed the number is likely to touch between 130,000 and 200,000 cases by the end of 2005.
The identity theft takes place after an impersonator starts obtaining your personal details – your name, address, date of birth, insurance number… The information obtained by the impersonator is than used to apply for credit cards, loans, mobile phones, passports, driving licences and other financial products.
The fraud can continue for as long as you do not check your credit card and bank statements.
But the CPP Group report said it would take anywhere between 100 days to 480 days for the people to realise their identity had been stolen.
It was also found that fraudsters targeted credit cards the most. In 2004, the overall fraud cost on credit cards rose by 20 per cent to £505 million, while postal theft rose by 64 per cent.
The reason attributed to the rise in identity fraud cases in recent years is because the UK does not have an identity card system which makes it easy for the criminals to break into an individual’s identity.
Secondly, identity fraud is not considered as an offense under UK law. Thirdly, there is no effort from the concerned authorities such as police to curb this menace as one case alone can involve checking hundreds of bank accounts and the tracing similar number of victims.
Lastly, even if the criminal is convicted the sentences are relatively light and it becomes difficult to retrieve the sum from them.
But this kind of fraudulent actually affects the victims who have to spend both time and money to prove themselves innocence to the credit reference agencies and financial institutions.
HBOS said it takes as much as £8,000 and up to 300 hours for a busy victim to prove himself innocent.
So before taking insurance make sure to read the small print of the policy as to what it offers, since the level of cover varies significantly.
Another alternative is to take up Credit Experts’ service that keeps you updated on weekly basis about your credit file status, thereby allowing you to keep a check on anybody playing mischief with your account.
If not, invest in a shredder and make sure to destroy all your documents with personal details when they become surplus to requirements. And see that these important documents are kept under lock and key.
To be on the safer side, never give details about yourself over the telephone unless you know the opposite person. So also, never disclose your passwords or card PINs.
Again destroy all pre-approved credit card application forms you do not want.
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