Is Identity Theft Insurance Worthwhile?
The recent hack of Sony’s Playstation Network (PSN) has resulted in the company’s online gaming network being down for an extended period. Despite the hack taking place on 19th April many users are still unable to use the service.
Sony are working to try and restore the service but must be embarrassed by the way a hacker bypassed their firewall. A potentially even bigger humiliation is the fact that the hacker may have gained access to thousands of user’s credit card details, addresses and passwords.
PSN subscribers are being warned to presume that their details have been stolen and to be extra vigilant over the next few months. Registered cards should be stopped at the bank and the necessary arrangements be made for replacements to be issued.
Whilst Sony will no doubt review the security protections in place following this recent breach there is a growing trend of identity theft across the UK.
New figures from the National Fraud Authority estimate that every year in the UK identity theft costs more than £2.7billion and affects over 1.8million people.
Identity theft can be devastating
Once they hold your personal information, criminals can apply for credit cards, bank accounts, passports and even try to claim benefits using your name. In severe cases, fraudsters who amend the electoral register can cause vast damage to the victims credit records. This leads to an immense amount of time-consuming work to correct and reinstate.
There are a number of ways to try and avoid identity theft whilst online:
- Always protect your personal details and keep usernames and passwords a secret.
- Beware of ‘phishing’ – emails that are faked or forged usually claiming to be from a trusted source
- Regularly change your passwords
- On social networking sites activate the privacy settings
- Ensure your PC has a firewall, spyware and anti-virus software and make sure these programmes are regularly updated.
In most cases banks will be willing to assist where identity theft has been found and verified. However, there are often other losses incurred that will not be so easily refunded by the banks. These can include the loss of wages for time taken to discuss matters with the Police; administration (mail/telephone) costs incurred dealing with the Police, referencing agencies and financial institutions & costs incurred for arranging fraud affidavits or similar documentation.
Consider a suitable identity theft insurance policy
These additional expenses can be covered via a separate identity theft insurance policy or more commonly as part of a comprehensive home insurance package. Many High Value Home Insurance policies now include identity theft insurance, stalking, trauma and similar ‘crisis’ covers as standard.
With this kind of crime on the increase, is it about time you reviewed your insurance covers and considered identity theft insurance? Ellis David offers a wide range of personal insurance packages and would be happy to assist.
Let us know if you have experienced identity theft.
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