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Answer:
Dear
Betty,
You
have no need to be concerned here at BUYandHOLD because
we use the highest available encryption level on Secure
Socket Layers. You also help us in protecting your
account and personal information by keeping your user-name
and password confidential.
However,
everyone should be concerned about identity theft.
According to a database maintained by the Federal
Trade Commission, last year 161,800+ identity theft
complaints were filed with federal, state and local
law enforcement agencies and private groups. That's
nearly double the number in 2001.
Insurance
As
you might guess, the number of companies offering
identity theft insurance is growing rapidly. Most
sell coverage as part of their homeowners' policies.
Travelers, which was one of the first to do so, along
with Farmers Group, charge $25/year for an ID theft
rider. Chubb's homeowners' and renters' policies cover
losses of up to $25,000 at no extra charge.
You
can also buy a stand-alone policy. At Travelers, the
cost ranges from about $60 to $180 a year.
In
April, Visa announced that it will provide member
banks with ID theft insurance as an optional benefit
for their card holders. The Visa policy covers up
to $15,000 in losses. MasterCard has similar coverage.
Caution:
Coverage by credit card issuers is not universal.
Because banks are the ones picking up the cost, they
can decide not to offer it at all or to limit it to
premium cardholders. You'll need to call the financial
institution that issues your card to see if you qualify
for coverage.
Do
You Need Coverage?
In
most cases, you cannot be held liable for more than
$50 in fraudulent credit card purchases. So you might
not feel it's worth it. On the other hand, you could
wind up spending a lot of time sorting out the mess,
making a number of phone calls, even hiring a lawyer,
in which case the policy could pay for itself.
If
you decide to shop for a policy, know exactly what
it covers. You want a policy that:
1)
Has a low deductible. According to the Identity
Theft Resource Center, the average victim spends about
$800 in out-of-pocket expenses.
2)
Reimburses lost wages. It may take you hours to
get everything straightened out. You may even have
to take time out of your workday.
3)
Covers the cost of denied credit. You may not
know you're a victim until you apply for a loan. You
want a policy that covers the cost of reapplying for
that loan and for the cost of deleting negative items
from your credit report.
4)
Pays for lawyer's fees. If you are sued because
someone committed fraud using your name, you can truthfully
claim that you're innocent. However, you'll still
need to hire a lawyer. You know that won't be cheap.
For
More Information
-
Get in touch with the nonprofit consumer network
Call For Action. They have a toll-free ID theft
hotline with counselors at: 866-434-6854. And, log
on to: www.CallForAction.org
for fraud-prevention tips. This group says it resolves
90% off all its reported cases.
- The
Federal Trade Commission has excellent advice at:
www.consumer.gov/idtheft.
Among the Commission's tips: Review bank and credit
card statements carefully. Call if you are missing
a statement. Cut up expired credit cards. Check
your credit report once a year with the three major
agencies. Don't give out your Social Security Number.
- Read:
"Identity Theft: Reduce Your Risk." Issued
by the government , it explains what to do if you
should become a victim. Download at: www.pueblo.gsa.gov.
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