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Travelers Releases Study On Identity Fraud Claims

Proquest LLC

Despite increased adoption of online shopping, mobile payment and banking apps, offline methods are the top known causes of identity fraud, according to a new study from Travelers.

According to a release, the first insurance carrier to offer identity fraud insurance reports that even in the digital era, burglary, stolen wallets and pilfered identifications account for 73 percent of all cases, according to a study of 2011 Travelers claim data.

Stolen or misplaced items, such as wallets and pocketbooks, accounted for the most common known causes for identity fraud. In the number two spot was a stolen or compromised license, Social Security card or other form of personal identification, according to the company's 2011 claim data. Burglaries rated third, followed by cyber breaches (including Internet scams) and old-fashioned forgeries.

Since identity thieves acquire valuable personal information in less obvious ways-from sorting through trash for bank statements to stealing pre-approved credit card applications in the mail-only 10 percent of survey respondents could identify whom the perpetrator was who committed identity fraud against them.

"When everyday essentials, like wallets or drivers licenses, are stolen or go missing, identity fraud often follows," said Joe Reynolds, Identity Fraud Product Manager at Travelers. "Credit cards, drivers licenses and other sources of personal information enable criminals to commit a fraud or crime, all in your name."

Travelers found the following as the top known causes of identity fraud:

_73 percent - burglary and theft of wallet/purse/personal identification/computer

_15 percent - online or data breach

_10 percent - forgery

_2 percent - change of address/postal fraud

"People are not always aware that someone is illegally using their identity until suspicious activity appears on their monthly financial statement," said Reynolds. "It is critical that consumers closely review these monthly documents, and remember to immediately call the bank if they suspect fraudulent activity."

Consumers can take preventative measures to protect themselves from identity fraud. Travelers offers the following tips to avoid having identities stolen:

_Carry only the essentials: Leave the unnecessary credit cards and critical documents in a discrete, burglar-proof location in your home.

_Beware of scams: Do not fall for scams intended to pull at your heart strings. Do not disclose personal information, such as credit card and bank account details, if you receive an unsolicited request.

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_Do not throw away -- destroy: Shred old bills and financial statements rather than placing them in the trash.

_Make security a priority: Make sure to store purses and wallets in a safe place, never print account information on envelopes of outgoing mail, and be careful about sharing personal information on social media.

_Know your score: Check your free credit report annually from the national credit reporting agencies.

Travelers' Identity Fraud Expense Coverage is available as an endorsement on a homeowners policy for $25 annually and offers protection up to $25,000 per insured person with no deductible and includes Identity Fraud Resolution Services.

More information:

((Comments on this story may be sent to [email protected]))

Copyright: (c) 2012 ProQuest Information and Learning Company; All Rights Reserved.
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