A study by the Federal Trade Commission (FTC) discovered that 8.3 million Americans in 2005 were victims of identity theft. That number is on the rise as criminals are becoming more sophisticated. In more than half the incidents, cyber-criminals only managed to defraud or steal $500 or less in goods or services before they were discovered and shut down, but in a tenth of cases, they made off with $6,000 or more. 

What's scarier? Fifty-six percent of all accounted victims claimed not to know HOW their personal information was taken. ID thieves impersonate the victim, stealing from bank accounts outright, creating sham insurance policies, opening credit cards (and maxing them) and getting bank loans in the victim's name.

Criminals use all sorts of methods to steal credit card numbers, from sophisticated online scams like "phishing" and "malware" attacks through the Internet, to the tried and true low tech methods, like diving in dumpsters. New "no-swipe" cards are especially problematic, as the radio frequencies used by this technology (as well as newer passports) can easily be intercepted by very simple homegrown devices.

This leaves victims not only unable to use their existing credit lines or get a new loan, they can find themselves subjected to criminal investigations, civil suits, or at the very least, bothered by collection agencies. You can read a more comprehensive overview of ID theft in this article.

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There is good news, however, should you find yourself on the wrong side of such unscrupulous hi-jinx. According to the Insurance Information Institute (www.iii.org), identity theft is often covered by your existing homeowners and even auto policies. Other companies offer it as a stand-alone policy or as an extra to an existing policy. Usually companies provide a fraud specialist that you can call. These folks will step you through a process to put the kibosh on any more exploitation and get your life back in order.  

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However you obtain identity theft insurance, it works the same way. Coverage includes reimbursement for the costs of restoring your credit, including notary, mailing and legal costs, and in some cases, even phone bills and lost wages! It's best to check first with your insurance company, as some expenses have to be approved first for reimbursement.

To learn more about ID Theft, these tips show you how to protect yourself, while this article is a good guide for what to do if you find yourself compromised.  At Pameno, we do of course, preach preparedness as the best line of defense.  For a nuclear option against ID theft, we've developed a premium service called Secure Wallet. Otherwise, a list of options for insurance is provided below.

III has provided this list of companies that specifically offer identity theft insurance:
• ALLSTATE INSURANCE

• AMERICAN INTERNATIONAL GROUP

• CHUBB GROUP OF INSURANCE COMPANIES

• ENCOMPASS INSURANCE

• ERIE INSURANCE

• FARMERS GROUP, INC.

• FIREMAN'S FUND

• LIBERTY MUTUAL

• NATIONWIDE

• STATE FARM

• TRAVELERS INSURANCE

• WEST BEND MUTUAL

More Resources
• Federal Trade Commission (FTC)
The FTC offers help to victims. File your case with the FTC Consumer Response Center. Include your police report number. Use the FTC uniform affidavit form.
877-ID-THEFT

• FBI Internet Fraud Complaint Center

• U.S. Dept. Of Justice

• Privacy Rights Clearinghouse (PRC)
619-298-3396