Further to my telephone conversation with an Amex representative last week, I received a mail-shot today trying to sell the same product. Presumably this way, I can’t be a smart-arse and call ’em on their fraudulent figures. Anyway, they go on to tell me how alarming identity fraud is:
Identity theft is a growing problem
Have you ever considered the impact identity theft could have on your life? Imagine how you would feel if someone used your name to obtain a loan, or acquire a new passport, or get new credit cards. It’s unnerving isn’t it?
Worryingly identity theft is on the increase. The CIFAS Fraud Trends 2000-2005 bear this out with the fact that there has been, “an increase of over 485% in identity theft incidence in the past 5 years”.
Being a nervous type and deeply worried by this information, I thought I’d take a peek at CIFAS’ website. Unfortunately, they repeat the fraudulent £1.3bn figure, which undermines their article somewhat. The website only goes up to 2003, however, we are talking about tens of thousands (high enough if you happen to get caught out, I know) out of a population of 60 million. So let’s keep a sense of proportion and manage the risk accordingly, please.
Shredding documents isn’t enough
Even if you take positive steps to avoid the problem such as shredding documents, you can still become a victim because criminals are finding increasingly ingenious ways to access your details both on and offline; and chances are you won’t even know about the crime until the trail of debt attached to your name catches up with you.
True enough, and I don’t just shred my documents. I read my bank statements and phone bills and check my credit ratings with Experian and Equifax on a regular basis. I also avoid giving information to people who ask unless I am sure that they need the information and I only provide as much as is necessary to conduct whatever business we intend to carry out – and no more. This is why I do not intend to allow my personal data to find its way onto a government run national database.
Take this example, Which? magazine highlighted in March 2005. “Mr B had his briefcase stolen containing his wallet, cheque book and items of mail – it was just the start of an elaborate identity scam which ended up costing £21,000.”
Mr B was a bloody fool keeping all that stuff together in his briefcase. How is his stupidity supposed to be a basis for me buying insurance? Oh, yes, that’s what all this is about, mind; flogging me insurance.
Think of all the time it could take to clear the whole mess up. Not to mention the sleepless nights spent worrying about it.
Yes, for £6.95 a month, I can buy “peace of mind”. Except that things are never that straightforward, are they? As El Reg points out, it shouldn’t be the punter who pays the bill. The question is, should I pay over £80 per year for something that will not prevent identity fraud, and will not directly cover monetary losses – at best all it will do is provide funding for legal expenses.
Before considering this type of insurance, think carefully about the proposed benefits. As with any insurance, what is the risk you are buying protection to mitigate, and can you mitigate it effectively for less outlay?
Research into identity fraud costs nothing – there is plenty of information on the web. A couple of credit reports a year costs up to £24. The costs involved with putting matters right is a risk that we have to make a decision about underwriting ourselves or forking out for an insurer to do so. But, what is the risk? Using *Amex’s risk calculator, my personal risk at 33% is below average. So, by their own terms of reference, I probably don’t need it. I can find a better use for that £80.
*Doesn’t work with Firefox. You have to use IE – a pox on web designers who don’t write compatible pages.