Identity fraud statistics just out from Javelin Research & Strategy put the need for insurance in perspective. There are two primary categories of fraud: existing account fraud, such as when someone gets access to your credit card, and new account fraud, which uses your information to open new accounts.
Existing account fraud is by far the most prevalent, accounting for $14 billion of the $16 billion in total fraud losses last year, according to Javelin. The mean consumer cost for this type of fraud, however, was just $63, and many victims will pay nothing. You decide.
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