New Identity Theft Threats

New Identity Theft Threats

July 6, 2018 Business Insurance and Risk Management, The Beacon Blog 0 Comments

Almost 17 million Americans had their identities compromised in 2017, a new record. Cyber criminals are increasingly using new forms of identity fraud, as described in a post by InfoArmor (https://blog,infoarmor.com/employees/data-winners-and-losers-facebook-myheritage-and-you-0?utm_medium=social&utm_source=linkedin):

Synthetic identity fraud – stealing personal data and using it to build a fake persona, a process that may take years. This type of identity theft may be responsible for 20% of credit losses.

Account takeovers – use a compromised account to open new accounts in victims’ names and use them to make new purchases.

Child identity theft – an estimated one million children had their identities stolen. Children have no credit issues, and until a child grows up they probably will not check their credit information.

There are ways to be proactive against identity theft:

  1. Use two factor authentication where possible.
  2. Use identity protection to monitor social media accounts.
  3. Be aware of phishing schemes; if you don’t know who’s sending you an email don’t click on links or attachments.
  4. Employers can offer protection plans for their workers whose personal information is in  a company database. (Note – some insurers offer plans to small businesses covering only the CEO or major owner. If a company stores employee information this is NOT recommended.)



About the Author

Harry Cylinder

Harry Cylinder, CPCU, ARM has spent nearly fifty years in the insurance industry, the majority of the time as a consultant. He has been employed by The Beacon Group of Companies since 2008, specializing in the review and analysis of property and casualty coverage forms. Mr. Cylinder has been reviewing policy forms as they have evolved over the past decades. In 2008 he published an article in the CPCU Journal which was the first description of cyber insurance coverage for a general insurance audience. Since that time he has regularly written on cyber and other topics for The Beacon Companies’ blog.