by W. Diane Van Zwol

Created on: November 27, 2008   Last Updated: October 14, 2009

On Understanding Identity Theft

"Identity theft, what is that?"

At this point in time, unless a person is actively involved with the internet, he or she may not know what identity theft is, the implications thereof and the importance of obtaining protection against identity theft.

"Does my homeowner's policy protect me in case of identity theft?" is a question that has increasing relevance, in today's cyberspace world.

Many people may not realize that insurance coverage can be purchased, but it is an optimal endorsement on a homeowner's insurance policy.

Let's look at what identity theft is, first of all.

Identity theft refers to the fraudulent use of someone else's identity, for the purpose of financial gain, or other benefits. Impersonating another person is considered a criminal offense. Personal identifiers like a social security number, social insurance number, driver's license number, credit card numbers, etc. are usually stolen, when identity theft is committed by another person.

Under the Criminal Code of Canada, section 403, the following statement is made. "Everyone who fraudulently personates any person, living or dead, (a ) with intent to gain advantage for himself or another person, (b) with intent to obtain any property, or (c) with intent to cause disadvantage to the person whom he personates or another person, is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years or an offence punishable on summary conviction."

http://en.wikipedia.org/wiki/Identity_theft

The Federal Trade Commission discusses identity theft on the following web site:

http://www.ftc.gov/bcp/edu/microsites/idtheft/consum ers/about-identity-theft.html

The FTC discusses how to deter or minimize your risk, how to detect identity theft and how to defend yourself or recover from identity theft, if you are victimized.

In the United States, there are laws against identity theft. Congress, under the Identity Theft and Assumption Deterrence Act (1998), ruled that it is a federal felony to use another person's identification, with the intent to commit unlawful activity.

http://hastingsmutual-idtheft.com/faq/faq.htm

How can you protect yourself?

Updated computer protection is extremely important to avoid identity theft. Anti-viral software and a firewall are recommended. Avoid using public computers to do your online banking, or activity that allows the transfer of sensitive information. Use caution with e-mail.

Avoid giving out credit card information

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