CETA promotes identity theft insurance

by Gill Montia

Story link: CETA promotes identity theft insurance

CETA, the 4,000 strong network of insurance intermediaries, is urging its brokers to promote identity theft insurance.

The risk of this type of fraud is increasing for UK consumers; losses from plastic cards used for Internet, telephone and mail purchases totalled £290.5 million in 2007, although CETA believes the figure could be much higher.

While the crime is mainly associated with credit card fraud, identities are also being stolen to open bank accounts, divert mail and apply for social benefits and mortgages.

According to the network’s managing director, David Quick, identity theft insurance is relatively cheap and can provide invaluable practical assistance to victims.

Mr Quick is concerned that many organisations do not appear to look after customers’ records well and that as criminals become more resourceful, consumers are beginning to live in fear of identity fraud.

The Financial Services Authority has recently completed a survey of the data security systems of 39 firms in the financial services sector and has gone on to warn that businesses must do more to protect customers’ personal data.