Travelers Customers See Burglary, Stolen Wallets/IDs as Top Causes of ID Fraud

Published on Monday, 23 August 2010 09:20 Written by TradersHuddle Staff

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.

Travelers Companies, Inc.Media Contacts:Sheila Trauernicht, 860-277-7461orMatt Bordonaro, 860-277-7014