A Review of Identity Theft Insurance

Because identity theft is both lucrative and easyidentity theft victims will not be covered. From
to get away with, ID theft rings are growing andtheir website:
fast in crime circles from meth addicts to mafia."If your identity is stolen while you are our client,
Consequently, there has been an overwhelmingwe're going to do whatever it takes to recover
corporate response to meet increased demandyour good name. If you need lawyers, we're
for identity theft protection.going to hire the best we can find. If you need
You have probably heard of LifeLock, an Identityinvestigators, accountants, case managers,
Theft Protection company that has been in thewhatever, they're yours. If you lose money as a
news quite a bit lately. In a ballsy move, theresult of the theft, we're going to give it back to
company's CEO Todd Davis has published hisyou. We will do whatever it takes to help you
Social Security number (475-55-5462) prominentlyrecover your good name and we will spend up to
and dared anyone to try to steal his identity.$1,000,000 to do it."
Actions speak louder than words, and his certainlyOther LifeLock Features:
show confidence in the protection his company* Identity theft protection for children (until age
offers. One of the fastest growing companies in15) for $25 a year
the US, Davis must have instilled confidence in his* LifeLock Customer Service is available 24 hrs 7
customers with inventive marketing strategy,days a week
gaining over 1,000,000 customers last year alone.In summary: this is proactive rather than reactive,
So what exactly is it and what do they do?stopping identity theft before it happens. Security
Should you join? We've gathered someexpert Bruce Schneier maintains, In reality, forcing
information about the company and thelenders to verify identity before issuing credit is
protection they offer here:exactly the sort of thing we need to fight identity
What is it and how does it work?theft. Making information harder to steal can be
The system places fraud alerts at all three creditquite difficult, you can be very smart and safe
bureaus and essentially makes these alertsand still have your purse stolen, for example. A
permanent. What is a fraud alert? In 2003better solution may lie in making stolen
Congress passed the Fair & Accurate Creditinformation more difficult to use, and this is the
Transactions Act (or FACTA), which forces creditapproach LifeLock uses.
bureaus to allow you to put a fraud alert on theirHow much does it cost?
credit reports, requiring lenders to verify yourProtection costs $10 per month or you pay for a
identity before issuing a card in your name. Thisyear in advance for $110 a year. In addition,
alert is temporary, expiring after 90 days, butvarious websites offer promotional codes and
LifeLock essentially makes these alerts permanentcoupons, advertising yearly protection for $99.
by renewing them before they expire. In effect,Is it worth it?
if someone gained your personal information andIt is important to know that almost all of the
attempted to open a fraudulent credit card inprotection LifeLock offers (fraud alerts, credit
your name, the credit bureaus would have toreports, etc.) you can do yourself for free. In this
speak with you to verify your identity beforeregard, they are a service company, saving you
processing the application.the time and hassle of taking these precautions
1- opts customers out of preapproved credityourself. Here is the information you need to
offers and junkmail lists, a known source ofprotect yourself (for free):
identity fraud.1. Put a fraud alert on your account. All you have
2- orders your credit report from all threeto do is contact (by phone or online) one of the
bureaus, which is automatically delivered to youthree major credit bureaus and request a fraud
every year.alert. No need to contact all three, as they are
3- True Address monitors the National Addressrequired to communicate fraud alerts with each
Database and alerts you if a criminal has changedother. Remember to renew the fraud alert every
your address to receive your mail or obtain your90 days. Fraud Alert Contact Information:
personal information.* Equifax
4- Lifelock's Erecon monitors hacker and criminal* Experian
websites for your credit card numbers and* TransUnion
personal information, and lets you know if anyone2. Opt out of credit card offers and junk mail.
is attempting to steal them. LifeLock will assist3. Get your free annual credit report.
you in replacing your account numbers in the caseIn addition to these measures (whether you pay
your privacy has been compromised.for them or do them yourself), there are other
5- offers a $1,000,000 Total Service Guarantee.precautions you should take to protect yourself
For legal reasons, LifeLock does not call thisagainst identity theft.
insurance. In effect, they pledge to cover your* Lock your mailbox with a secure locking
costs (i.e. reimburse financial loss, legal fees tomailbox.
restore credit, etc.) in the event that your identity* Switch from paper bills to electronic bills.
is stolen up to the amount of one million dollars.* Shred confidential mail with a cross-cut paper
Note, this does not cover someone stealing yourshredder.
credit card and using it (which rarely costs you* Do not carry paper checks or your social
anyway, as this is the bank's domain). It also onlysecurity card on you when possible.
covers new cases of identity theft, existing