Several years ago my husband received a call from American Express asking if he was in Rome. Nope, right here in the U.S.A. Turns out that someone in Rome had used his company-issued credit card number to take out a large cash advance. We were not held responsible for the fraud and were grateful for the vigilance by the company.
Most bank and major credit card companies watch for fraud. In addition, many are now offering premium services at monthly or yearly subscription rates. So what do you get from identity theft insurance that you don’t receive from credit card monitoring?
BestIDTheftCompanys.com ranks identity theft insurance companies and reports that banks and credit card companies are “limited in their resources in the identity industry.” In fact, BestIDTheftCompanys.com went so far as to say that, “Many consumers are misled in what their bank, credit card or insurance company can do for them in regards to protecting their identity.”
Credit card companies monitor spending habits and purchases, and fraud alert specialists might notify the cardholder if an expensive purchase is made or if the card is used in an unusual location.
The sooner a victim reports credit card fraud to a credit card company, the quicker the fraudulent charges can be resolved. Cardholders should always report a missing or stolen card as soon as they realize it has been misplaced.
Sometimes identity theft victims don’t discover the dilemma they are in until months or years after the fact. Checking a credit report or applying for a loan or new job might lead to the first warnings of a problem.
Identity theft encompasses so much more than mere credit card fraud. Depending on the type of identity theft insurance, some companies monitor for new accounts opened in your name, medical identity theft, tax fraud, criminal fraud, your child’s identity and more. In addition, identity theft insurance companies provide the resources to undo the damage done by identity theft.