Every year, more than 13 million Americans are victims of identity theft. In addition to having their names and identities stolen, victims often suffer significant financial consequences. Below, learn how to identify identity theft and how to prevent it, particularly the ways the right home insurance policy or rider will help.

What Are Some Common Signs of Identity Theft?

Cyber thieves want your sensitive personal data so they can spend money and run up massive bills under your name. This, of course, leaves you with the balance. To ensure a prompt response and timely remedy, everyone should be aware of the common signs of identity theft. In most cases, victims see unauthorized withdrawals from their bank accounts or unknown charges on their credit cards, or they might start receiving bills from providers they never utilized.

Once the theft has progressed, your debit or credit cards may be declined when you try to use them due to insufficient funds or exceeded credit limits. Similarly, merchants might stop taking your personal checks.

Some cyber criminals try to get a victim's income tax refund, so they will file a tax refund in the victim's name. If the IRS informs you that you have filed more than one return, consider it a major red flag for identity theft. 

How Can It Be Prevented?

First, check your home insurance policy. Some policies include identity theft protection as part of standard coverage, but it's more likely that you'll need to purchase a home insurance rider or endorsement that specifically offers this. Costs are usually nominal, and the policy will pay for itself if you are a victim. Depending on the coverage, it may help reimburse you for lost funds, pay for credit repair services, or cover paperwork and mailing fees.

You can also protect yourself by being extra careful with physical paperwork and documents. If possible, store as many of these records digitally as possible, and shred all bank statements, credit card bills, and anything else that reveals personal information. Also, you only need to keep tax records for seven years; once that time has passed, destroy them.

Find the right home insurance policy or rider by contacting Western States Insurance Group, Inc. They have been serving Lovington, Hobbs, and Lea County, NM, and the surrounding areas since 1997. They offer home, business, auto, life, and health insurance options. Call (575) 396-1318 to request a quote or visit them online to explore their insurance products. Follow their Facebook and Twitter for updates.