Impacts of Identity Theft

ID theft.jpg

Every few months, we hear about a major retailer and a data breach that involves consumer’s private information.  It’s a concern for anyone who shops with a credit or debit card.  And, for those who have had their identity stolen, they know the immense effort required to repair the damage.  

The impact of identity theft is significant and the opportunities for it grow each and every day.  This is why most homeowner’s insurance policies now include coverage for such an event.  Identity theft insurance cannot stop the theft but it does offer you help in the form of a specialized agency to assist you in repairing the damage and recovering the losses.

Here are just a few interesting facts about identity theft – read more here

Consumer Identity Theft Statistics Overview
•    Identity theft is the fastest growing crime in the US. (FBI)
•    Total number of victims is now over 50 million individuals.  This means that 1 in 5 people in the US is now a victim of identity theft. (FTC, FBI, Javlin/BBB, Fraud Invest) 
•    Identity theft can include stolen money and product, costs of recovery and fraud investigation, and lost opportunity costs.

Losses To Consumers as a Result of Identity Theft
•    Average losses, per each victim of identity theft, approaches $10,000 per victim per attack.(FraudInvest/ JavlinBBB) 
•    Although victims are finding out about the theft of their information quicker, it is taking longer for them to recover. (IDTResource)
•    $3.8 billion total is lost from consumer spending annually – seriously affecting our economy.(FTC) 
•    A more recent study indicated that most victims spend close to 600 hours recovering - 300% more time than indicated in previous studies.  (IDTResource)
•    Victims spend, on average, $4000 recovering from a single incident of identity theft.  (FTC/ FraudInvest)

 Emotional Impact Resulting from Identity Theft
•    Only 1 in 700 identity thieves are caught.  Most identity thieves are never caught and most victims never obtained restitution or the return of stolen funds.  Failure to catch the criminal also leaves the victims concerned about ongoing or future victimization by the unknown criminal. (Gartner)
•    Harassment by debt collectors or creditors may alert victims to the crime.  (FTC)
•    Consumers indicate significant disappointment in the assistance that they receive from many companies when they are a victim of identity theft:  Victims expect significant immediate assistance which is often not available or not provided to their satisfaction.

Having identity theft coverage through your homeowners insurance enables you to seek immediate help from professionals rather than relying on the credit card company or retailer to assist you with the problem.

There is as range of coverage available; please consult with your agent to find the right coverage for you and your family.