September 2000

You receive a call from a collection agency demanding payment for a credit card you didn't know you owned. So you order a copy of your credit report. The report states that you've moved, gotten married and spent thousands of dollars in the past few weeks. What's going on? You're the latest victim of identity fraud — the fastest growing scam in the criminal world.

Identity fraud has become a serious problem in the United States. In 1992, Trans Union, a credit-reporting agency, received 35,000 calls about fraud. By 1998, that number had jumped to 554,000. And the numbers keep climbing.

Identity fraud occurs when a criminal steals your Social Security number and other personal information, such as credit card numbers, address, ATM card numbers, driver's license numbers and income. They do so by going through your trash, stealing your mail or purchasing the information from dishonest workers employed at companies privy to this information. Once the criminals have your personal information, they assume your identity (at a different address) and apply for new credit cards, purchase cars, open checking accounts — the list is endless. And you're left to clean up the mess.

Consider purchasing identity fraud insurance. Travelers Property Casualty Corp. is the first insurer to offer this type of protection. It's called Identity Fraud Expense Coverage, which provides for the following expenses that victims of identity fraud may face:

• Lost wages as a result of time taken off from work to deal with the fraud (coverage up to $500 per week for four weeks).
• Attorney fees incurred, with prior consent, for:
  • Defending suits brought incorrectly by merchants and their collection agencies.
  • Removing criminal or civil judgments wrongly entered against you.
  • Challenging information in a credit report.
• Notary and certified mailing costs for completing and delivering fraud affidavits.
• Loan application fees for reapplying for loans that were declined due to the fraud.
• Phone charges for calling merchants, financial institutions and law enforcement agencies.

Policy highlights only. Actual policy provisions shall govern in all cases.

		The Better Business Bureau recommends these ways to ensure that you don't become a victim: Keep extra credit cards, Social Security cards and PIN numbers at home in a safe place — don't carry them with you. Destroy your credit card and ATM slips so the numbers can't be read. Or keep them under lock and key. Shield the keypad from view when punching in calling card or ATM numbers. Have a list of all credit card numbers and company phone numbers handy in case your wallet is stolen. Never give out your personal information over the phone — especially your Social Security number. Avoid PIN numbers that could easily be guessed, such as part of your address or phone number, or your birthday.