I just got off the phone to my credit card company, because I had to activate my new credit card, and they tried to get me to buy some identity/fraud protection insurance. I told them I wasn't interested.
But it made me wonder how many people do pay for insurance of this type. When I got my new credit card I took out a Card Protection Plan because I have so many debit and credit cards, that I would be in a right fix if I had my wallet stolen. They cover drivers license, passport, keys and travel tickets etc too, and it's not too pricey. But my protecting my "identity" just seemed a bit too much.
They said that if someone got my mothers name from an ancestry website, and my date of birth, name and address (which are all easy to get hold of), then they could get out a big loan in my name, and probably open an account in my name to pay it into too.
I said that if they did, then surely when I get the letter through the post saying I had taken out a loan, then I could just tell the company that it wasn't me. The guy was prepared for this response.
He said that I might well be able to prove my identity, but that the legal costs for if the company took me to court could be very expensive. He also said that the individual could just request to only be contacted by email (if the lender wasn't a particularly clever one).
I told him I get free legal representation at work through my union. I don't actually know if they cover identity theft, but I didn't want to waste his time any more.
It seems to me as though identity theft is something for the banks and lenders to tackle with stricter procedures, not something that I should have to pay for. And calling it "identity" theft is just deliberately provocative / emotive, because our identity is the most personal thing about us, and to have that taken away would be devastating. Identity protection seems to me like a waste of money and just a way for banks to recover their legal costs from consumers rather than take the time to improve their policies and procedures.
What do you think? Have you encountered identity theft? Was it costly? Or do you have Identity Protection?
I'd be interested to hear other people's points of view (i.e. people other than the banks who are trying to sell it to!)
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