Identity Theft: Protect your most valuable asset

Identity Theft: Protect your most valuable asset

Tips to remain vigilant and the value of identity theft insurance

What would you do if someone used your identity to open accounts, rack up debt or file false insurance claims? Identity theft is a growing threat that can happen to anyone, causing financial loss, fraudulent accounts and damaged credit or reputation-issues that may take months or even years to resolve. Protecting your identity is just as important as safeguarding your home or car, which is why being proactive and considering insurance coverage is crucial.

Identity theft involves criminals using stolen personal or financial information to make unauthorized transactions, secure credit or access services. The use of identity theft in insurance-related crimes is expected to rise 49% by the end of 2025, according to the National Insurance Crime Bureau (NICB), the nation's leading non-profit association dedicated to preventing insurance fraud and crime.

When it comes to insurance, bad actors may attempt to file fraudulent claims. As a result, insurance carriers must dedicate resources to investigating these suspicious activities, which can sometimes delay the processing of legitimate claims, lead to misuse of your coverage, and contribute to higher premiums for all policyholders. According to the Coalition Against Insurance Fraud, the U.S. loses approximately $308.6 billion in insurance fraud, leading to each policyholder paying $900 more through annual premium increases.

Why identity theft insurance matters
Identity theft insurance is an affordable addition to your existing home insurance policy. It can help cover the high costs of restoring your identity, such as legal fees and lost wages, up to $25,000. With American Family Insurance, you'll also receive support and guidance throughout the restoration process, helping you recover faster and with less stress, getting you back to pursuing what matters most.

How to help protect your identity
While identity theft insurance can help with recovery, it does not prevent theft or alert you if your identity is compromised. However, you can help reduce your risk by staying vigilant and taking precautions. Here are steps you can take:

• Protect your Social Security number: Don't carry your Social Security card unless necessary. Never use your SSN as an account number and only share it with trusted sources or when legally required.
• Monitor your credit report: Use credit monitoring services and check your credit report regularly. You can request a free annual report from each of the three national credit bureaus: Equifax, Experian and TransUnion.
• Secure your mail and documents: Investigate missing bills or statements promptly. During tax season, be extra cautious with mail. If you're away, have your mail held at the post office or consider a locking mailbox or P.O. box.
• Destroy personal documents before discarding: Shred documents containing personal information before disposal. Place trash out for collection in the morning rather than leaving it overnight.

Signs your identity may be compromised
Watch for these warning signs that someone may be using your identity or information:

• Unexplained bank withdrawals
• Unauthorized credit card charges
• Debt collectors contacting you about unfamiliar debts
• Unrecognized accounts or charges on your credit report
• Bills for services you didn't use
• Not receiving your bills or mail
• IRS notifications about your SSN being used for a tax refund or employment

What to do if you're a victim
If you suspect identity theft, taking immediate action can help minimize damage:

• Set up fraud alerts with credit bureaus
• Contact your financial institutions
• Notify federal agencies

Identity theft is stressful, but you don't have to face it alone. American Family Insurance offers coverage to help you recover and protect your finances and family. Contact your American Family Insurance agentto learn how adding identity theft insurance can provide peace of mind at a low cost.

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About American Family Insurance
American Family Insurance, a mutual holding company based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance Group is the nation's 12th-largest property/casualty insurance group, ranking No. 202 on the Fortune 500 list. The Group has a current 'A+' credit rating through AM Best, and has distinction as a "Standing the Test of Time" company, which is represented by having an AM Best financial strength rating of 'A' or better for 75 years. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance Group also includes CONNECT, powered by American Family Insurance, Homesiteand Main Street America Insuranceand has approximately 11,000 employees nationwide.