When we think of identity theft, we tend to think of the usual outcomes like fraudulent credit card charge, bank charges, bank accounts and credit cards opened in your name, and other large purchases made in your name.  That’s not all identity theft can impact.  Since 2008 many thieves managed to steal our tax returns by filing as us before we filed.  Recently we’ve found that identity thieves are able to steal your home by making quick claim deeds and sign the house out from under you without your knowledge.  If that wasn’t enough now they can even get your life insurance policy.

As technology advances, AI is being used, and most of our information can be obtained in public searches, we have become more vulnerable.  Almost all our records from banking, medical, and other info is stored on a computer as well.  Unlike paper methods, where you physically had to breach an office to obtain it. Today we can do it from the comfort of our home by hacking emails as well as firewalls at government and financial institutions.  There isn’t much we can do when it happens.

Let’s discuss what Insurance Identity Theft is.  Insurance identity theft occurs when an identity thief uses your stolen personal information to obtain a new insurance policy or use of your current policy. Once they have gained access to insurance in your name, they can receive medical services under your name, making you the unlucky recipient of any future bills that they incur.  They can also cash out your life insurance policy getting all the premiums paid into it closing the policy.

So imagine that your loved one passed, you go to the funeral home and get them ready for their last wish for their body.  Suddenly the funeral director says that sorry, this policy was cancelled and the individual is no longer insured.  If you are like me, my heart would sink and I would panic.  I want that loved one to get their last wishes fulfilled but now I may not be able to unless we can finance their funeral costs which will cost me.  We also may not be able to pay off their debts either.

So what can you do to protect yourself?

First rule of thumb is to adhere to good policies when you involve your personal information online.  This includes: using strong and unique passwords that you change often, do not share your personal information over text or e mail, properly dispose of sensitive documents, and keep a close eye on your medical records and insurance policies.  Most policies you can look online to see payments, distributions etc.

When you receive strange texts or email’s that look official, ALWAYS verify the number it came from and email address it was sent from.  Many hackers make an email look very authentic, so you click on the links, enter your information and it takes you to your account but what you will soon find is it went to a hacker.  So check that email address.  I get tons of emails saying my Amazon Prime Account is in jeopardy of being cancelled because the payment can’t be made so click here to update.  The email address it came from is like a hotmail, gmail or some strange domain.  Do some due diligence.  Hackers like to use scare tactics, and most of us fall for it.

What can you do if you become a victim?

First contact the policy issuing company directly either through your agent or direct.  Second, contact the Federal Trade Commission to file a report.  You may want to file a police report, even if they don’t catch this person that report is an official complaint that can cause adverse problems if you made a false report.  This makes it credible when fighting it in court and a tool to aid your insurance company.  You will want to make a credit freeze with the credit reporting agencies and finally keep thorough records.

We do have another option to help too!

Identity theft can cause you untold distress, frustration and can cost a fortune to fix.  As a agent of LegalShield and IDShield, we can protect you if you find yourself a victim.  IDShield will help you recoup some of the money lost from a financial theft, monitor your credit to notify you if something changes, and more.  You can use this to protect your private information, all accounts from bank accounts to gaming accounts – even your insurance policies.  Reach out to us today if you want to invest in this very important product that can protect you!