If you do fall victim to identity theft or suspect that you have, it is important to act fast and know what steps to take to regain your financial identity. Identity theft insurance is one potential tool to help protect consumers.
March 27, 2019
Having identity theft insurance is an essential step for consumers to protect themselves should they fall victim to identity theft. Identity theft insurance may reinburse victims for expenses incurred for activities and efforts made in reclaiming their identities and restoring their credit report. To help consumers, national nonprofit American Consumer Credit Counseling discusses how to go about filing an insurance claim after falling victim to identity theft.
“It is more important than ever for consumers to look at their financial accounts at least once a week, if not more, for suspicious activity,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “If you do fall victim to identity theft or suspect that you have, it is important to act fast and know what steps to take to regain your financial identity. Identity theft insurance is one potential tool to help protect consumers.”
According to the Federal Trade Commission’s (FTC) yearly report, identity theft was the second most filed report in Florida in 2017. Florida ranks second in the U.S. with most identity theft with a total of 31,167 identity theft reports filed in 2017. The most frequent type of identity theft reported was credit card fraud at 40 percent followed by bank fraud (18 percent), employment or tax-related fraud (17 percent), phone or utilities fraud (14 percent) and government documents or benefits fraud (9 percent).
ACCC discusses crucial things to know about filing an insurance claim after falling victim to identity theft.
1. Check the policy – It is important for consumers to check their policy to ensure they know what will be covered. Identity theft insurance will cover the costs associated with reclaiming your identity, such as notary fees, lost wages and sometimes attorney fees, up to a certain amount stated in the policy.
2. Report it – Consumers should report the identity theft crime immediately to the police, the credit card company and the financial institution that houses their accounts. To file an insurance claim, the consumer will need a copy of the police report.
3. Restoration service – Insurance policies that offer a restoration service will do the legwork for the consumer. The consumer will most likely also have access to a professional that will help walk them through regaining control of their financial identity. Some policies may have deductibles ranging from $100 to $500 that must be paid before the insurance coverage starts working.
4. No restoration service – Consumers who have policies without a restoration service will be responsible for restoring their financial identity on their own. While doing this, it is important for consumers to keep all of their receipts to then submit for reimbursement from the insurance company once the process has finished.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx