Credit card identity theft is now on the rise. More and more victims suffer because of impersonators stealing their credit card information and creating a mess with their financial situation. Recent estimates report of 10 million cases of identity theft in the US. The truth is several cases are still under cover and no one knows the exact figure. Stolen credit card numbers are now a very common issue and everyone is looking out for some way to get protection against this form of theft. People are ready to pay money for coverage.
Identity theft insurance is now offered as a standalone policy or a compound package by various financial institutions. The number of advertisements and offers from bankers and credit card companies about identity fraud protection plans are on the rise.
The coverage provided by identity theft protection varies between plans and you must know what kind of protection is provided. Plans do not provide protection against becoming an identity theft victim and losses that occur as a result of stolen identity are not compensated. Only those costs that must be spent to deal with the situation are covered. Since more and more people are interested in buying identity theft protection, financial institutions are trying to increase the coverage provided. Even though the loss itself is not covered it is still a good idea to get identity theft coverage as there are numerous processes to be done legally and financially to clear the mess created by identity theft.
Like all insurances the policy you choose will determine the coverage. Some plans of identity fraud protection won’t cover lost wages or legal fees because of identity theft. In most of the cases, the deductible is around $150. According to the FTC, a victim of identity fraud has to spend around $1500 to deal with the proceedings after impersonation.
Since you are only paid for the proceedings involved, you have to face the agony of clearing your credit reports. Identity fraud insurance doesn’t provide any kind of fix for your credit standing. You have to talk to the creditors and deal with bad credit reports.
The chances of you becoming a victim of impersonation among 200 million Americans are just 0.35%. So, when you find ways to protect your ID from being stolen, you can greatly reduce the risk involved. The best form of protection against credit card theft is prevention. The results of identity fraud may be devastating, but you can help reduce your loss with identity theft insurance.