Identity Theft Insurance Worth It?

Subject: sorry - long reply

I just recently had someone use my name (and address, and social security number, and birthdate) to open a credit card account, to order an iPhone, and to start service on a cell phone account... I only found out because the credit card company sent me a change-of-address verification form, and when I called them I discovered the fraud. It was kind've scary, not knowing what the criminals who used my information would do next...

At the advice of the credit card company (who cancelled the account) I immediately called the credit agencies (if you call one they usually will notify the others). They put a temporary stop on my accounts, so anyone trying to use my credit for any reason would not be allowed to.

Then FedEx tried to deliver a package to my home. I knew I wasn't expecting a package so I called them and they told me it was an iPhone. They sent me to their fraud department who gave me the shipper's information, and the shipper gave me the seller's information, and I talked to everyone and explained that it was fraud. The criminals had bought the iPhone online, with a service (I think called Bill Me Later or something like that) that only asks for personal information, and will bill you later.

Then a few days later I got a call on my home phone number from a cell phone company that noticed that the account that someone just opened with my information had odd useage. There were multiple calls to other cell phone companies, expensive calls... They flagged the account because of the usage pattern and wanted to check.

For both the online service that sold the iPhone and the cell phone company I had to send in affadavits that they sent to me for investigation to continue. I did that, but only after filing a police report (so that I could have a report number). I went down to the 77th Precinct (which took a VERY long time, during which the civilians working there were rude when they weren't disinterested or giving out incorrect information. I've had the same experience when I called to follow up - the police are okay but the civilians working for them are just painful to deal with) and filed a report.

Then I sent a letter (there are guidelines about what information you must include, and you have to send in copies of your ID and a utility bill) to the credit agencies asking them to put a permanent stop on my reports. One of the agencies sent me a note telling me that the police report information I sent was not correct. I believe it - what the civilians at the police station gave me was a file number to use when I called the nice detective to follow up, plus a copy of the form I filled out, which I don't think was the official police report. A different detective told me it wasn't, and wanted me to come in which I imagine would have had me spending several MORE hours to get the report. But since the other two agencies sent notices that my permanent freeze (stop) was active, and the first agency sent the same notice a week later, I think I'm okay in terms of my accounts truly being frozen.

What that means is, when I went to Avenue and tried to get 30% off my purchase for signing up for a store credit card, I was denied. That's fine. I only applied to get the saleswomen to stop asking me to apply. If I ever really want to start a new line of credit then there are several ways that I can lift the freeze / stop - either for a single instance or permanently - from my reports.

In my case I didn't lose anything that insurance would have reimbursed me for. I tend to think that this type of insurance would be a waste. But I don't know...

The whole thing was pretty stressful. I wish you luck.

Two months ago someone tried to use my credit card number to purchase bus tickets in Texas. The credit card company noticed the transactions because they were so different from my usual purchases, and contacted me. They didn't charge me for the fraudulent transactions. I think the cc company reported it to the police. They also changed my account number.

Last summer, someone who worked for a check approval company stole millions of checking account numbers and sold them to telemarketing companies. Mine was one of them. The check approval company send me a letter notifying me of the theft. I contacted my bank and changed all of my account numbers.

Neither of these incidents resulted in any losses for me, but they were scary. I had to put a fraud alert on my credit records for the one that happened last summer.