Tag Archives: identity theft

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Free Mobile App from NAIC Helps Consumers Take Guesswork out of Auto Accidents

Automobile accidents happen every minute of the day. According to the National Highway Traffic Safety Administration, more than 5 million wrecks occur every year. However, according to a July 2012 survey from the National Association of Insurance Commissioners (NAIC), many Americans do not know what steps to take or basic information to share—or not share—after an accident. They may even put their identities and safety at risk by sharing too much personal information. The new WreckCheck mobile application from the NAIC can help eliminate that risk.

The recent NAIC survey revealed consumers were unsure about auto accident best practices, such as when to call the police or what personal information to exchange with the other driver after an accident. Consumers generally need only share their names and correct vehicle insurance information, which should include the phone numbers of insurance providers. Sharing additional personal information, such as driver’s license numbers and home addresses, puts consumers, their property, and their safety at risk.

“The last thing you’re probably thinking about following a car accident is protecting your privacy,” says NAIC President and Florida Insurance Commissioner Kevin M. McCarty. “Understanding what information to share, and with whom, will help keep you safe after an accident and decrease some of the challenges of filing a claim later on.”

The new WreckCheck mobile application from the NAIC outlines what to do immediately following an auto accident and takes users through a step-by-step process to create their own accident report. It also provides tips for staying calm, safe, and smart on the road, and makes it easy to capture photos and document the necessary information to file an insurance claim. Additionally, the app lets users email a completed accident report directly to themselves and their insurance agents. The app is free and available for both iPhone and Android smartphone users.

Drivers can visit InsureUOnline.org for additional information about what to do following an auto accident. Also available on the site is a downloadable accident checklist, a video demo, an audio interview (NAIC President and Florida Insurance Commissioner Kevin M. McCarty Discusses WreckCheck Mobile App) and other materials to help consumers protect themselves after an accident.

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The Number-One Way Criminals Steal Your Identity

Identity fraud increased substantially in 2008, reversing a four-year trend of decreasing incidents. Researchers say identity fraud increased by 22% last year and they anticipate another 22% jump in 2009, attributing the increases to crimes of opportunity driven by the economic downturn. What’s more, despite recent headlines and growing fears about online security and data breaches, old-fashioned theft is the most popular way thieves steal identities and perpetrate identity fraud.

According to 2008 claim data compiled by Travelers, burglary and theft of wallets, purses, and personal computers provide thieves the best opportunity to gain access to personal information. In instances where the victim knew their identity had been stolen, it was the result of personal property being stolen nearly 78% of the time. Travelers identifies the following as the top known causes of identity fraud:

  • 78%—burglary and theft of wallet/purse/personal identification/computer
  • 14%—online or data breach
  • 5%—change of address/postal fraud
  • 3%—lost credit card and other miscellaneous causes

More than 75% of the time, criminals use stolen information to open new credit card accounts or use the existing credit cards to make charges. Twenty percent of identity thieves will withdraw money from existing checking, savings, and online accounts and 16% open utility accounts in the victim’s name.

Steps you can take to protect your identity include guarding Social Security numbers and financial information and shredding documents such as receipts, credit/insurance applications, and bank statements.

Travelers Identity Fraud Expense Coverage is available as an endorsement on their homeowner’s policy for $25 annually and offers protection up to $25,000 with no deductible. Check with the companies you represent to see what coverage is available. This coverage is a great opportunity to educate your clients and offer them broader coverage for a small premium.

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80% of Americans Concerned about Identity Theft

Bankrate, Inc. released the findings of a national poll that found that eight out of 10 Americans are concerned about their identity being stolen. Furthermore, more than one-third (34%) of Americans know someone who has been a victim of identity theft.

According to the Federal Trade Commission, there were approximately 800,000 consumer complaints filed in 2007. Of those complaints, 32% involved identity theft. The total dollar amount in reported fraud losses was more than $1.2 billion.

Respondents who reported being concerned about identity theft were more likely to shred documents (82%) versus those who are not concerned (52%). Notably, people who are uneasy about identity theft were much more likely to keep tabs on their credit reports. Fifty-three percent of concerned folks check their credit, versus 30% of the unconcerned. Women (83%) were significantly more likely to destroy sensitive information than men (69%).

The national random-digit-dialed phone study of 1,006 adults 18 or older was conducted for Bankrate by GfK Roper Public Affairs & Media. The surveys were conducted from April 4 through April 6, 2008. The sample was weighted by demographic factors including age, gender, race, education, and census region to ensure reliable and accurate representation of adults in U.S. households. The margin of error for the survey is +/- 3 percentage points.