Robert Siciliano and Keith Green from Allstate discuss identity-theft insurance and whether it's worth buying. The policy covers expense reimbursement and restoration services, but the conversation questions if these products actually protect you or just profit from fear.
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On the Money tonight. Identity theft. You know it's a huge problem, but do you really need insurance to protect yourself? We'll show you if it's a good idea or just preying on your fears. Welcome back. It's become the crime of the decade— identity theft. Federal authorities say identity theft and computer crimes bring in more money than the nation's booming illegal drug trade. Now insurance companies are getting into the game Allstate now offering identity theft insurance.
You can't always prevent identity theft, but you can protect yourself. That's Allstate's stand. Are you in good hands?
Keith Green is the Vice President of Product Design at Allstate. He's with us tonight. And Robert Siciliano, identity theft expert and consultant on white-collar crime, is here with a look at whether or not insurance is enough. Keith, I want to start with you. Forgive me. But this product sounds a little bit gimmicky.
Uh, not at all, Melissa. I think, uh, as you've just said, this is a growing crime. It's a growing concern on the part of consumers. And at Allstate, we saw an opportunity to really step up to the plate.
So what does the insurance do for you?
Uh, it does a couple of things in two broad categories. First of all, it provides expense reimbursement. So there are potential expenses sometimes which are substantial that a victim could incur, whether it be attorney fees, whether it be lost wages. The other important component is a restoration component where we have partnered with a professional firm who's an expert in identity restoration to help the consumer address the problems that have been a part of having their identity stolen.
But isn't the horse sort of out of the barn at this point once it happens?
Not really. I mean, there is, once it's happened, I mean, that's only the start. And there's a lot of benefit in terms of taking immediate corrective action. I think that the studies have shown that consumers spend on average, or victims on average, spend 30 hours over days, weeks, and months trying to address these problems.
Robert, tell me your opinion. Does this make sense or is it just a moneymaker?
Well, there is definitely a need for the restoration part of it, because most people aren't in a position to administratively restore their own identity. 30 hours is a small number. The Identity Theft Resource Center calculated as much as 600 hours. So it can take quite a long time to restore your identity, and getting assistance in that respect really is a great benefit. The insurance end of it, that is a reactive form of responding to an identity theft theft issue. I'm a security professional. We're all about being proactive. Alerting the consumer to any activity, meaning anybody trying to open up any unauthorized accounts under that consumer's name and social, really is the most important part of any insurance product. It's really the federal government passing initiatives that really don't require the Social Security number to be a primary identifier, either that or, okay, enough is enough with open-door policy on credit, meaning that at any given time, Anybody can access your credit report as long as they have access to your Social Security number, which a lot of people do. Your Social Security number is for sale in a lot of different places.
Get the federal government in charge. I don't know. Sounds like a bigger problem. But thank you so much, both Robert and Keith. Thanks for joining us.
