Identity theft and insurance

A great many consumers are wondering how best to protect themselves against the fraudsters, following the news that 25 million people may have had their personal data compromised by Her Majesty's Revenue and Customers (HMRC).

There are some insurers who offer policies specifically to include cases of identity theft and hacking, while others offer protection as part of their home insurance policies.

Peter Gerrard, head of insurance research at moneysupermarket.com, is not sure that they represent value for money, however. He warns: "There are a number of 'so called' identity theft products on the market.

"Some of these are stand alone and some are bundled with other products including home insurance credit cards and current accounts. Most will cover losses if fraudulent transactions take place, however, is consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course."

He continues to warn that for victims of identity theft: "The real cost of having your identity stolen or cloned is the time, stress and effort it takes to resolve the situation."

Banks are also concerned that worried customers will reach for the telephone handset, or come into the branch to close accounts without checking whether they have cause for concern.

They are urging account holders to watch for unusual transactions, but not to rush to anticipate problems.

21/11/2007 09:38:52