It is often been said that the worst vice is advice. These days, it seems like we are constantly bombarded with information from “experts” who know more about something that we do… at least they seem to think so. And for a small fee, they are more than willing to give you their advice on what they think you should do. This is the situation for your Guide, as well – but at least the information here on About.com doesn’t cost you anything.
For example, consider the recent MoneyTalks article by Jason Steele. Although I have to agree with the information he gave concerning credit card insurance and cellphone insurance, this recommendation about ID theft insurance seems a bit shortsighted. Perhaps this is due to the fact that he is looking at things strictly from a financial viewpoint. This is the biggest concern going today among identity theft experts and protection companies that deal with more than just your finances.
Although it is true that most identity theft protection programs tend to focus on finances, credit cards, bank accounts, etc., some programs put more focus on the complete picture. In some identity theft programs, a baseline profile is built when you first enroll which covers far more than just your finances. This can be a phenomenal tool for helping to recover when identity theft strikes. And some identity theft services can be a handy resource to help you recover from the problem, even if it is financial.
That said, Steele points out something your Guide has been saying for years. Before you buy into an identity theft protection program of any sort, know what you are buying. For example, if your insurance agent wants you to buy an identity theft product to help protect you, there are some key questions you should ask him or her before you sign the dotted line. And even if they tell you there is a program built in to your homeowner’s policy, you will still want to see what that program actually is. Chances are good that using the typical ”rider” found in most homeowners policies will make your rates go up, and do next to nothing to actually help you.
In today’s economy it is even more important to understand where your money is going, and make sure that what you’re buying is going to do what you hope it will. But like Life Insurance, it has gotten to the point that an identity theft protection program is a necessary protection everybody needs… even our children. After all, identity theft continues to rise, and has been the top reported consumer complaint for nearly a decade. And although the final numbers are not in for 2011, the number of data breaches for the year had surpassed the number of breaches in 2010 in September, so it will be another record year in that respect.
It may be good to take a moment and point out that data breaches are very closely connected to identity theft. Some experts say your chances of being a victim of identity theft are six times higher when your information is compromised in a data breach. Among experts, this is the single most important reason for the information protection laws such as FACTA, with personal privacy coming in a close second, since most of this are mostly concerned with privacy because we’re worried about what someone will do with their personal information if they get it. And the Federal government is still wrestling with a data breach notification law, tried to balance out privacy concerns against a genuine business need to collect certain information in order to do business with us.
The worst thing that we can do from an identity theft perspective is to stick our heads in the sand, reassuring ourselves that it could never happen to us. The unfortunate fact is that identity theft almost always catches the victim with their pants down. The biggest misconception is that you have to have good credit for an identity thief to take advantage of you. But it doesn’t matter if you have good credit, bad credit, or even no credit.
In fact, all it takes to become a victim of identity theft is a Social Security number.
