National Study Reports Number of ID Fraud Victims Up 12 Percent in
2009
HARTFORD, Conn.--(BUSINESS WIRE)--
Burglary, stolen wallets and pilfered identifications continue to top
the list of the most common known causes of identity fraud for Travelers
customers, accounting for 76 percent of all cases, according to a
comprehensive study of its 2009 claims data. The information was
compiled by Travelers (NYSE: TRV),
the first insurance carrier to offer identity
fraud expense reimbursement insurance.
The findings mirror last year’s report on Travelers’ 2008 claims data
which indicated that the majority of identity fraud cases reported by
customers were from burglaries and stolen wallets. This underscores how
thieves still prefer more low-tech means of identity fraud over
online-related thefts and data breaches that garner significant media
attention.
“This study suggests once again that more traditional means of identity
fraud are prevalent today and continue to pose significant risks to
consumers,” said Joe Reynolds, Identity Fraud Product Manager for
Travelers. “Knowing this, it is critical that consumers take steps to
protect themselves and their property.”
Travelers identified the following as the top known causes of identity
fraud for its customers:
-
76 percent - burglary and theft of wallet/purse/personal
identification/computer
-
9 percent - online or data breach
-
9 percent - forgery
-
6 percent - change of address/postal fraud
The study also revealed what criminals do with the stolen information.
According to the Travelers study, 74 percent of the time criminals use
the stolen personal information from Travelers customers to open new
credit card accounts or use the existing credit cards to make charges.
Of that 74 percent, 26 percent of identity thieves access existing
credit/debit cards, 21 percent open new cards and make charges in the
victim’s name, and 18 percent access and withdraw funds from existing
checking, savings and online retail accounts.
Travelers’ findings come at a time when identity
fraud continues to plague consumers nationally. A study by Javelin
Strategy & Research showed that the number of identity fraud victims
jumped by 12 percent to 11.1 million adults in 2009, the biggest
increase since the survey began in 2003.
“Identity fraud is a crime that can happen to anyone, anywhere, and so
it’s particularly important for people to exercise diligence in
protecting their personal information,” noted Reynolds.
Reynolds recommends taking a proactive approach to protecting
your identity, including guarding Social Security numbers and
financial information, shredding documents such as receipts,
credit/insurance applications, medical records and bank statements and
considering identity fraud expense reimbursement coverage, which can
help someone recover from identity fraud.
Insurance protection for identity fraud from Travelers provides
customers with access to a consumer fraud specialist, who can guide
victims through the process of restoring their identity. Coverage
includes reimbursement for the costs associated with identity
restoration as well as providing the services required to help victims
restore an identity.
Identity Fraud Expense Reimbursement Coverage is available as an
endorsement on a Travelers homeowners policy for $25 annually and offers
protection up to $25,000 per insured person with no deductible.
Travelers also offers Identity Fraud Expense Reimbursement Coverage to
financial institutions and commercial entities as an employee, customer
or membership benefit.1
About Travelers
The Travelers Companies, Inc. (NYSE: TRV)
is a leading property casualty insurer selling primarily through
independent agents and brokers. The company’s diverse business lines
offer its global customers a wide range of coverage in the auto,
home
and business
settings. A component of the Dow Jones Industrial Average, Travelers has
more than 30,000 employees and generated revenues of approximately $25
billion in 2009. For more information, visit www.travelers.com.
1May not be available in all states and is subject
to individual eligibility.
Source: Travelers Companies, Inc.
Contact:
Travelers Companies, Inc.
Media Contacts:
Sheila
Trauernicht, 860-277-7461
or
Matt Bordonaro, 860-277-7014