Is Identity Theft Insurance a Scam?

People have become more and more aware about their personal data and information being breached and misused. Following these outrageous incidents about identity theft and bank accounts being stripped off that all of us hear from time to time, people have started to resort to any protection means available. It is all very common, and also quite a trouble when you’re coming face to face with identity theft these days. If you’ve faced this kind of a problem previously, or you know someone who has been a victim of identity theft, then you’re much likely to accept the proposals of identity theft insurance just to make sure that you don’t get caught up in a twisted web.

tech-913034_640

                                                                         Image Credit – Pixabay

The increase in number of cyber crimes has made a lot of people run for cover. Those bespectacled hackers sitting comfortably in front of their computers and deviously stealing all of your money and stripping you of most of your valuables along with stealing your own identity have created an uproar, which led to insurance companies claiming to provide protection from these events. And just so you can sip coffee freely on your patio, you’ve decided to trust the companies providing this luxury as well. You’re not one to blame; nobody wants to deal with these kind of things, and worrying about identity theft is not your first priority during endless board meetings or shopping trips with the wife.

Just so you can get this excess stress out of your mind, trusting into the policy that is being offered to you by insurance companies to protect your identity and bank accounts is a common occurrence. And why wouldn’t you trust the policy? After all, you’ve always trusted this insurance company. But here’s the rub; there are people who have been tricked into identity theft insurance countless times. Not many have noticed this or taken into account that it might just be the fault of the insurance company itself and not theirs.

There have been instances where these insurance companies have conveniently tricked people into buying the policies—which, by the way, cost enough of your fortune anyway—and then presented the lousiest of results. Either the protection they initially offered didn’t meet its standards at all, or it incurred you more losses than you would have if you’d been hacked by a twenty-one-year old with a computer and a clever brain. It’s important to notice the obvious flaws in the plans that the insurance companies present. You might overlook them at first, but if you want to ensure that identity theft insurance isn’t draining your bank account itself, there are things to keep in mind.

What you should note is that if they’re making claims that seem more larger than life than a Star Wars movie plot, then you’re probably being played with. They’ll claim to provide you immense overall protection: something which they won’t fulfil when your credit card is stolen and is being used to shop for stilettos. What they should be doing instead, is to tell you exactly how much protection they can practically offer based on their resources, and how much significance this policy holds for you. Their claims should be based on facts, not on what their company hopes to achieve while providing you protection.

Don’t be mesmerized by how colourful their words are and how nicely they communicate with you over delicious tea and biscuits. They’re most probably making you believe that your identity will never be robbed even if their life depends on it, and when said attempt does happen, their hands will be tied, and you’ll be faxed a document whose tiny points you forgot to read before signing it. They’ll ask you to leave everything on them and rest assured during your next holiday trip to the Maldives, and by the time you return, your credit card will have the bill of a month-long trip when you only went for a weekend.

With your money, said insurance company will make immense profits while you’ll be left with nothing. It’s much better to pay attention to things yourself rather than giving away your trust to a company that is only going to trick you till the end. Awareness matters more than you’d think, and if you know what exactly you’re getting yourself into, you’ll be safer than others of your likes. Do your background researches before letting that smart-looking man walk into your home with a bunch of insurance documents to sign, which as he claims will ensure life-long protection from identity thefts.

While their proposal is being told to you, make sure to ask them questions that will give you the assurance that you’ll be given what is being offered. If they’re making fantastical claims, beware of those, and try to enquire about what they can actually do in case a hacker comes knocking at the door of your bank account or credit card. Ask if you’ll be paid what you’ve lost if identity theft does occur, despite the company claiming that it won’t. Make sure that your questions are being honestly answered instead of them dodging everything you want to know.

The usage of your credit card should be notified to you immediately as it is being done. Credit monitoring services are popular among these companies, but the claims they make are not always true. Make sure you’re keeping alert about any suspicious activities, because credit card scams are awfully common these days, which is unfortunate all on its own. In conclusion, all you can do is be more awake and alert than you’ve ever been when dealing with sensitive matters such as this.