The holiday season brings joy, generosity, and, unfortunately, an increased risk of identity theft. According to the Federal Trade Commission, more than 1 million Americans reported identity theft in 2023, with losses exceeding $10 billion.
At Gerety Insurance, we’ve seen firsthand how the rush of holiday shopping can leave even the most careful people vulnerable to identity theft. While you’re checking off your gift list and hunting for deals, criminals are looking for opportunities to steal more than just holiday cheer.
So, how can you stay safe this holiday season, and do you need identity insurance?
What is Identity Theft?
Identity theft occurs when someone uses your personal information without permission, typically for financial gain. During the holidays, this crime becomes particularly prevalent as shoppers:
- Make more purchases than usual
- Shop on multiple websites
- Use public WiFi while shopping
- Rush to catch limited-time deals
- Share personal information across numerous platforms
The consequences can be devastating, with victims facing a race against time. While 76% of victims who catch identity theft within the first month spend fewer than 10 hours resolving the issues, delayed discovery can lead to weeks or months of recovery work during what should be a joyful season.
What is Identity Theft Protection?
Identity theft protection is a combination of monitoring services, insurance coverage, and recovery assistance designed to:
- Watch for unauthorized use of your personal information
- Alert you to potential fraud
- Help recover your identity if it’s stolen
- Cover certain costs related to identity theft
What You Already Have (That You Might Not Know About)
Many people don’t realize they already have significant identity theft protections built into their existing financial services, which are guaranteed by law.
Credit Card Safeguards:
- Zero liability for fraudulent charges
- No payment required for unauthorized purchases when reported
Bank Account Protection:
- Coverage for unauthorized withdrawals
- Protection when suspicious activity is promptly reported
Credit Bureau Services:
- Free fraud alerts to prevent identity theft
- Free credit freezes to block new account creation
Federal Protections:
- Laws limiting liability for unauthorized charges
- Additional consumer safeguards
Before purchasing extra identity theft protection, take time to understand the safeguards already included in your financial services.
What is Identity Theft Protection Insurance Endoresement? The Added Layer
A Identity theft protection endoresement isn’t just fraud coverage—it’s primarily a add on to your current home policy. The real value lies in having experts guide you through the recovery process rather than handling it alone.
When Does A Identity Theft Endoresement Makes Sense
You might benefit from identity theft insurance if:
- You have a high public profile.
- Your data has been compromised in previous breaches.
- You do extensive online shopping or banking.
- You lack time to monitor accounts yourself.
- You want experts to handle recovery.
When You Might Skip Identity Theft Endoresement
Insurance for identity theft might not be worth it if:
- You’re comfortable monitoring accounts yourself.
- You already have similar coverage through other services.
- You maintain good security practices.
- You’re willing to handle recovery procedures on your own.
- Your existing credit card or banking services provide adequate protection.
Identity Theft Coverage Through Your Existing Insurance
Many homeowners, renters, and auto insurance policies offer identity theft protection as an optional endorsement. Through our carriers at Gerety Insurance, this endorsement typically provides:
- $10,000-$25,000 in coverage
- Legal fee reimbursement
- Coverage for financial assistance
Coverage details vary by carrier, so consult your insurance advisor to understand your options.
Staying Safe Without Identity Theft Protection
You can significantly reduce your risk of identity theft through smart practices and existing protections without purchasing additional insurance. Here’s how:
Use Your Free Protections
Start by activating fraud alerts on your credit and debit cards and reviewing your free credit reports regularly. For maximum protection, place free credit freezes with all three major credit bureaus—Experian, Equifax, and TransUnion.
Don’t forget to set up mobile alerts through your bank and credit card companies so you can spot suspicious activity instantly.
Monitor Your Accounts
During busy shopping periods, make it a habit to check your statements at least weekly and review every transaction notification you receive. Sign up for account activity alerts and enable real-time purchase notifications—these free tools can help you catch unauthorized charges the moment they happen.
Tips for Protecting Yourself This Holiday Season
The holidays bring increased shopping activity and sophisticated seasonal scams. Follow these guidelines to mitigate the risk of identity theft during the holiday season:
1. Safe Online Shopping
Before making online purchases, always verify website security by looking for “https://” and double-checking site addresses for suspicious misspellings that might indicate a fake site. Be especially cautious of deals that seem too good to be true.
Avoid clicking shopping links directly from emails or texts—instead, type the store’s web address directly into your browser.
2. In-Store Protection
When shopping in stores, check if card readers or ATMs appear loose, crooked, or have unusual attachments—these can be signs of tampering or skimming devices. If the card slot feels wobbly, has a different color or material than the rest of the machine, or includes suspicious overlays, use a different terminal and alert store personnel.
Keep your wallet secure while shopping, and make it a habit to cover the keypad when entering your PIN to prevent thieves from capturing your information.
3. Smart Shopping Habits
According to a Forbes Advisor study, 40% of respondents had their personal information compromised while using public WiFi. Always use your cellular data over public WiFi for financial transactions.
Keep detailed records of your holiday purchases by saving all receipts and confirmation emails, and increase your account monitoring frequency during heavy shopping periods.
If You’re Considering A Identity Theft Insurance Endoresement…
Before purchasing a policy, understand what separates a strong policy from a weak one by asking these key questions:
1. What Are the Coverage Limits For Lost Wages and Legal Fees?
Identity theft recovery can take weeks or months—make sure you’re adequately covered for missed work and legal support.
2. Is There a Deductible Before Coverage Kicks In?
Some policies require you to pay hundreds out-of-pocket before coverage begins.
3. Does Your Credit Card or Bank Already Provide Similar Coverage?
Avoid paying twice for protections you already have through existing services.
4. Is There a Dedicated Case Manager for Identity Restoration?
Having a single point of contact who knows your case can save hours of explaining your situation to different representatives.
5. Do You Get 24/7 Fraud Assistance?
Fraud doesn’t wait for business hours—immediate support can prevent additional damage to your identity.
6. How Quickly Will the Service Begin Working On Your Case?
Every hour matters when your identity is stolen. Some services start working immediately, while others take days to begin.
7. What Documentation Will You Need To File a Claim?
Understanding requirements upfront helps ensure you can actually use the coverage when needed.
8. Are Family Members Included In the Coverage?
Some policies protect your whole household for the same price, while others charge per person.
Take time to compare several providers’ answers to these questions—the differences in coverage and service can be substantial. Remember, the cheapest policy isn’t always the best value, especially if it lacks crucial features like dedicated case management or has low coverage limits.
The Bottom Line: Do You Need Identity Theft Protection?
As your local insurance partners, we believe that identity theft endoresment is usually necessary for everyone. However, it can provide valuable peace of mind and practical support during high-risk periods like the holiday shopping season.
The real value often lies not in the monetary reimbursement but in the professional restoration services and expert guidance provided if your identity is stolen.
The decision ultimately depends on:
- Your shopping habits
- Existing protections
- Time and expertise to handle potential theft
- Personal risk tolerance
- Value placed on peace of mind
Need Help Deciding?
At Gerety Insurance, we’ll help you understand your options, including identity theft endorsements available through your current policies. Contact us to review your coverage and ensure you have the right protection for your circumstances.
We’ll help you understand all your options, including both insurance and non-insurance protections, so you can shop with confidence, knowing you’ve made the right choice for your circumstances.
