As recently as 2005, identity theft affected more than 8 million Americans. 8 million Americans had their identities stolen, ranging from credit cards to bank accounts. 8 million Americans had money stolen from them, and that number has only grown worse since then. McAfee, one of the most prominent computer security companies, estimated that such types of fraud cost more than $1 trillion in 2008. Malware, responsible for much of identity theft, grew by a reported 400% in that same timeframe. Even with increasingly robust security software and smarter banking techniques, consumers are still privy to identity theft. The best way to protect yourself from having your identity taken away by a stranger is to purchase identity theft insurance coverage.
Identity Theft Insurance Coverage Can Save A Lot!
While that $1 trillion figure is spread out over many nations across the world, the implications are still frightening. If there are 3 billion computer users globally and everyone had their identities compromised, that $1 trillion split up over everyone would be about $300. However, the number of cases would probably be closer to 100 million or so, meaning that the average loss was around $10,000. Of course, many cases deal with businesses, where the amounts are much higher. Still, more than ten percent of people affected have $6,000 or more stolen from their accounts. As such, identity theft insurance coverage is absolutely necessary for protecting your credit. $6,000 can mean the difference between having heating in the winter and not.
However, the most important step that you can take on your own is to report identity theft immediately. The longer your identity is compromised, the more damage can be done to your name. In some cases, you may end up getting a criminal record for events that you have no knowledge whatsoever of. Getting your name cleared can be a huge hassle, but identity theft insurance coverage can do most of the work for you. Also, identity theft insurance coverage will help replace any important documents that might have been stolen from you, such as your driver’s license or passport.
Without a doubt, identity theft insurance coverage’s biggest advantage is the emergency line of credit that it provides to you. For example, Nationwide provides up to $25,000 to reimburse any fees you might accumulate. Court costs associated with identity theft can easily cost $15,000, so this line of credit is instrumental toward clearing your name. You’ll still end up doing the greatest part of the grunt work yourself. Chances are that you’ll take about three weeks off work (the average time it takes to clear identity theft up is about that length of time). Identity theft insurance coverage is the only true way to protect yourself from this growing criminal activity.