Identity theft (Cyber Insurance) is a significant and growing concern for insurance agents, and not only for their clients. We hear and read about loss of personal data and identity theft every day, such as the massive loss of customer information at TJX (see here, here and here). And identity theft can be costly for companies, as TJX is finding out (see Euclid here). But can it happen to insurance agents?
The answer is yes. On May 9, 2006 an Illinois-based insurance broker, an affiliate of Marsh, lost a computer with the names, social security numbers and addresses of approximately 540,000 New Yorkers (more info here, here, here & here). The computer was located a few weeks later, but the FBI began an investigation and the New York Attorney General got involved. The loss of data was costly. In addition to internal costs, the broker paid $60,000 to the AGs office to cover the cost of its investigation, and agreed to offer identity theft insurance to each of the individuals impacted by the data loss.
In New York, the New York State Information Security Breach And Notification Act (see here) requires timely notification of a loss of information to both the consumers impacted and a number of different state agencies.
Identity theft is a growing concern, and insurance agents might want to consider their own exposure as well as that of their clients.
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From the highest-ranking government official to regular blue-collar workers, every single one of us is potentially a victim of identity theft. The news stories below provide just a glimpse of the dangers facing our personal security
An Internet social gaming community was shocked to learn that one of their own had intentionally distributed malicious software. A man from the state of Washington had developed a program known as a “trojan horse” and masked it within links to movie files that were emailed to members of the group. The spyware was designed to implant itself on the recipient’s computer and allow the thief access to personal data such as passwords and financial information. The man who betrayed the trust of his online friends pleaded guilty to fraud.
A study conducted by the National Crime Prevention Council revealed that, for the seventh straight year, identity theft is the top complaint among consumers. The NCPC went on to say, however, that participants in the study who acknowledged identity theft as a fear showed themselves to have no more knowledge about personal security issues than those who claimed they were not concerned. These results hint at an alarming lack of action among Americans in the face of a very real danger.
We live in a world of criminals who are resourceful, relentless and determined to do whatever it takes to get their hands on the personal information of people like us. A regular monitoring service can only alert you after your identity has already been stolen. Get proactive! LifeLock is able to guarantee your good name. Come see how!
Posted by: Mike Prusinski | June 01, 2007 at 12:38 PM