Date: August 25, 2006
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Identity Theft Hits Insurance Industry

Madison, WI—Two recent incidences of data breaches at insurance firms serving Wisconsin consumers highlight why it is important for individuals to monitor their personal information and know how to respond in the event it is compromised.

"Identity theft, as can arise from data breaches like the ones we have witnessed this summer, is a major and growing problem nationwide," Insurance Commissioner Jorge Gomez said. "Thankfully, both companies involved in the recent cases have taken steps to protect their customers' personal information from any further exposure."

Under Wisconsin law, companies must alert potential identity theft victims within 45 days if they learn of a security breach of company-stored personal information. Upon becoming aware of the lapse, consumers should take immediate steps to prevent their personal information from being used in nefarious ways.

If you have reason to believe you are at risk of identity theft, the Federal Trade Commission (FTC) recommends you take the following actions:

• Place an initial fraud alert on your credit report by contacting any of the three national credit bureaus, Experian, Equifax or Trans Union. Once you contact one, the other two will be alerted. The fraud alert can help prevent accounts from being opened in your name.
• Close tampered accounts. If your account was used by another party, ask the company for fraud dispute forms. When opening new accounts, use different passwords.
• Carefully watch for unauthorized usage in any of your open financial accounts, such as bills not arriving on time or inquiries about purchases or lines of credit you did not open. Inspect your credit report for signs of identity theft.
• File a complaint with the FTC, and if you have evidence your identity is being used by someone else, contact the police. The police report may be used by creditors as evidence of the crime.

Consumers should pay close attention to correspondence from the involved company detailing the nature of the security breach. The company may offer to pay for credit monitoring, for instance.

"Companies in the insurance industry maintain sensitive personal information of customers," Gomez said. "If your information is leaked in any way, the company must inform you of what happened - and then you must take action to prevent criminals from stealing your identity."

More information on identity theft can be found on the FTC's Web site at www.consumer.gov/idtheft.

Publications from the Office of the Commissioner of Insurance, such as "Understanding How Insurance Companies Use Credit Information," can be ordered for free by visiting oci.wi.gov, calling 800-236-8517 or writing OCI Publications, P.O. Box 7873, Madison, WI 53707-7873.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.