Tag: identity theft protection

When an employee's identity is stolen, the damage rarely stays contained to their personal life. It spills into the workplace, quietly, persistently and at real cost to employers. Identity theft triggers a cascade of financial consequences that employees are seldom equipped to handle. These include damaged credit scores, unauthorized accounts and unexpected debt. According to a recent report, identity fraud victims report an average loss of 200 hours when resolving fraud-related issues. This time is primarily consumed during business hours on calls to banks, credit bureaus and government agencies. Attention fragments. Focus deteriorates. Anxiety compounds. And because the financial consequences can drag on for months or even years, so does the distraction. This is what makes identity theft a workforce issue that impacts productivity and the bottom line, not just a personal one. For employee benefit brokers advising employers on benefits strategy, understanding this dynamic is critical. Brokers have an opportunity to reframe identity theft protection as a financial wellness solution that serves employees and employers alike, rather than simply positioning it as a cyber product. Compounding the financial stress of employees Even before fraud enters the picture, employee financial stress is one of the most significant and underappreciated drains on organizational performance. One study found that 62% of employees report that moderate-to-severe financial stress affects their productivity, with three out of four saying it affects their work motivation. Another study found that 84% of employees reported that financial stress left them exhausted and burned out. For employees already under financial stress, when fraud hits, the problem is compounded dramatically and the workplace ends up absorbing the cost.  These factors have changed how employees view employer benefits. In the past, a paycheck, basic health insurance, and a retirement plan were the benchmark for attracting employees. That threshold has moved. Today, 84% of employees feel their employer should be more actively involved in helping them navigate financial challenges.And 87% of workers say they would consider leaving an organization that doesn't prioritize their overall well-being. Employees are looking to their employers for help with financial stress, underscoring the importance of offering financial wellness programs that address these pressing concerns. For brokers, this is both a challenge and an opportunity. Offering identity theft solutions strictly as cyber products misses the bigger picture. There is an opportunity to position identity theft tools within a more comprehensive, integrated financial wellness program that addresses employees’ concerns about financial security and well-being. When employers offer benefits that proactively address employee concerns, they reduce distractions caused by financial stress, thereby improving productivity. The added advantage of a benefits package that includes a financial wellness program is the ability to be more competitive in attracting new talent while retaining existing employees, thus reducing churn.  These benefits are hard for employers to ignore. Why financial wellness programs are effective Employee benefit brokers are well-positioned to explain to employers why financial protection for employees shouldn’t be limited to a single product or a monitoring alert but instead is more effective when part of a complete solution. A financial wellness program can provide the credit education employees need. For many employees, credit remains one of the most misunderstood forces shaping their financial lives, affecting their ability to qualify for loans, secure housing, lease a vehicle or even pass background checks for certain jobs. Credit education tools that provide real-time monitoring, personalized guidance and interactive learning resources help employees understand what's happening with their credit, why it matters and what they can do about it. The results of this type of education can be striking. Research shows that one in three users with scores below 800 move up a full credit band within 12 months of enrolling in credit tools. Employee financial wellness programs go beyond education. They provide employees with the tools to actively manage budgets, build savings, reduce debt and track their progress over time. Personalized dashboards, goal-setting features and proactive coaching turn passive awareness into active behavior change. This is important because only 44% of employees currently feel fully supported in their financial wellness. That's a meaningful opening for employers who want to differentiate. A financial wellness solution will also provide identity protection. This is where the workplace impact becomes most direct. Strong identity protection goes well beyond credit freezes or basic alerts. It includes real-time monitoring across the dark web, financial institutions and public records; instant notifications for suspicious activity; device-level security tools; lost wallet recovery support; and insurance coverage for resolution costs. When an employee's identity is compromised, the speed and quality of their recovery depend almost entirely on the infrastructure they had in place before the incident. A compromised identity often leads to credit damage, requiring financial rebuilding and demanding education and guidance. When these wellness capabilities are integrated into a single connected experience, employees don't just get an alert; they receive a clear path forward. The broker's role in closing the gap Employee desires for greater financial wellness support are increasing. Brokers who understand this shift are positioned to have a very different kind of conversation with employers. When brokers recognize that financial well-being is inseparable from workforce performance, they can bring solutions to employers that better serve the business as a whole. By framing identity protection not as a standalone add-on but as one integrated component of a broader financial health strategy, brokers can help employers see the full picture: the risk identity theft poses to productivity and morale, the inadequacy of fragmented point solutions and the competitive advantage of getting this right. Employees who feel financially secure are more focused, more loyal and more productive. For employers, offering benefits that support business outcomes is essential. An integrated benefits solution that connects credit health, financial wellness, and identity protection delivers a double win: protecting what matters now and accelerating what’s possible next. Want to explore how an integrated approach to employee financial protection could serve your clients? Visit our employee benefits resource hub

Online activity is a routine part of people’s days. Americans spend an average of 4 hours and 25 minutes on their phones every day,[1] and many regularly use multiple devices to access the internet. However, with more time spent in the digital space, the risk of identity theft and fraud also continues to grow. The growing threat of identity fraud This year, the FTC has already received 5.7 million total fraud and identity theft reports, 1.4 million of which were identity theft cases.[2] More consumers are becoming vulnerable to the threat of identity fraud, but many are unsure of how to protect themselves. To avoid monetary loss and significant lifestyle disruption, consumers are looking to their financial institutions to provide resources to help them prevent identity theft and protect their personal information online. Consumers want identity protection from their financial institutions Consumers also expect their banks to carry the responsibility of protecting their private data from the risk of theft. While most of them trust in the security provided by their banks, about 50% of consumers want their banks to offer additional protective measures.[3] This creates an opportunity for financial institutions to fulfill the role of “data protector” for the customers that depend on them. The convenience of a full suite of financial services all in one place is also important to consumers, as 45% would prefer to get all their banking products from the same financial institution.[4] While consumers need identity protection, businesses need new ways to engage their customers and drive more revenue. Fortunately, offering identity protection is an effective way to maintain a sticky relationship with your customers while delivering an enhanced, engaging experience. Protect your customers from fraud with Identity Protection Services With identity protection, your customers can: Check for exposed personal information and lower their risk of identity theft Reduce their exposure and decide who can track their activity and access their personal information online Keep control of their digital identity by reclaiming exposed personal information, increasing their privacy, and avoiding future risk An identity protection solution provides a comprehensive strategy to avoid the risk of identity theft, while delivering exceptional results that your customers need to feel safe and secure. Providing frequent updates and recommendations about their digital identity and credit score allows you to maintain an engaging communication channel with your customers and boost your brand interaction. For example, the average Experian® user had a 60% alert open rate and 12% post-alert login rate.[5] As they continue to receive useful suggestions for strengthening their online security, your customers may interact with your app or website more regularly and consistently. This can create valuable opportunities for you to encourage them to open new accounts, start new credit lines, or borrow more money. In addition, giving your customers an added layer of assurance can drive them to remain loyal, long-standing customers to your business. 96% of active Experian subscribers with a free bundle were still subscribed after 12 months[6] 90% of active Experian subscribers with a paid bundle were still subscribed after 12 months[6] Less than 1% churn rate with fewer than 100 service calls[7] Consumers want protection from thieves who might steal their personal information, and they expect it from a trusted source. By offering an identity protection solution, you can foster stronger relationships with your customers while reducing their vulnerability to fraud. Visit our website to see how Identity Protection Services can help you deliver best-in-class protection for your customers. [1] PC Magazine. Americans Check Their Phones an Alarming Number of Times Per Day. May 2023. [2] IdentityTheft.org. 2023 Identity Theft Facts and Statistics. [3] PYMTS. Half of Consumers Want More Security Measures From Banks, January 2023. [4] PYMTS. 45% of US Consumers Want Banking Bundles. August 2022. [5] Experian Data, average user experience with Digital Identity Manager, May 2023. [6] Experian data, August 2023. [7] Experian Data, average user experience with Digital Identity Manager, May 2023.

Unfortunately, identity theft can happen to anyone and has far-reaching consequences for its victims. According to the US Department of Justice (DOJ)’s most recent study, 17.6 million people in the US experience some form of identity theft each year. This includes activities such as fraudulent credit card transactions or personal information being used to open unauthorized accounts. The most obvious consequence that identity theft victims encounter is financial loss, which comes in two forms: direct and indirect. Direct financial loss refers to the amount of money stolen or misused by the identity theft offender. Indirect financial loss includes any outside costs associated with identity theft, like legal fees or overdraft charges. The DOJ’s study found that victims experienced a combined average loss of $1,343. In total, identity theft victims lost a whopping $15.4 billion in 2014. Beyond money lost, identity theft can negatively impact credit scores. While credit card companies detect a majority of credit card fraud cases, the rest can go undetected for extended periods of time. A criminal’s delinquent payments, cash loans, or even foreclosures slowly manifest into weakened credit scores. Victims often only discover the problem when they are denied for a loan or credit card application. Last year, Experian found that these types of fraud take the longest time to resolve. Identity theft doesn’t just impact victims financially; it also often takes a significant emotional toll. A survey from the Identity Theft Research Center found that 69 percent felt fear for their personal financial security, and 65 percent felt rage or anger. And, almost 40 percent reported some sleep disruption. These feelings increased over time when victims were unable to settle the issue on their own, according to the report, which can result in problem as work or school, and add stress to relationships with friends and family. Thankfully, consumers are getting smarter about the best ways to protect their information, like using monitoring services or following security best practices. How are you protecting yourself against identity theft? Learn more about our Identity Protection Services

It may seem like April is far away, but tax season in fact launches next Tuesday, January 19. And whether you’re a business or an individual, you’ll want to know if you’re eligible for any tax benefits. Thanks to a recent announcement from the Internal Revenue Service (IRS), identity theft protection will now be considered a non-taxable benefit – a nod to the rising importance of the service for all consumers in today’s security landscape. The IRS will treat identity theft protection as a non-taxable, non-reportable benefit—for any employee or company, regardless of whether they’ve experienced a data breach, or whether the identity theft protection is provided by an employer to employees or by a business to its customers. Previously, only employees or customers who were in the aftermath of a data breach could treat identity theft monitoring as a non-taxable event. But after that announcement just four months ago, several businesses suggested a data breach was not a remote risk, but rather, “inevitable.” What does this mean for companies? They can now deduct any cost of offering identity theft protection to their employees or customers. The IRS defines identity theft protection services as: Credit report and monitoring services Identity theft insurance policies Identity restoration services Other similar services It’s important to note that these don’t need to be reported on either W-2 or 1099-MISC forms. However, this new policy won’t apply to cash given to employees or customers in place of identity protection services. Perhaps the change in defining what qualifies was spurred by the IRS’s need to provide identity theft protection last summer, as its online database of past-filed returns and other documents was hacked. That breach affected over 300,000 individuals. Whatever the reason, the announcement means this is a perfect time to sign up for identity theft monitoring services. You can do so through an employer or directly with a retailer. Particularly for individuals, the ability to receive tax benefits while knowing your personally identifiable information is safe and secure is a great feeling. For existing subscribers, upgrading to premium services may now be a more viable option. Does your company offer identity theft protection and monitoring as an employee benefit? If not, would this announcement change their minds? Visit our website for more information on identity protection products you can offer your customers. Learn more

Data breach notification letters serve multiple purposes. They ensure a breached company is compliant with data breach notification laws, they alert consumers to the breach and their involvement in it, they can warn customers of potential identity theft risks and educate them on how to cope with those risks. The one thing no company wants its notification letter to do, however, is make the recipients any more upset than they already are. Yet that’s the reaction many consumers reported upon having received data breach notification letters, according to the study “The Aftermath of a Mega Data Breach: Consumer Sentiment.” Conducted by the Ponemon Institute on behalf of Experian Data Breach Resolution, the study provides some eye-opening insights into how consumers feel and what they do after receiving a breach notification letter. To put consumer sentiment in perspective, consider these revelations from the study: Among those polled, 63% said they felt the breached company should offer consumers identity theft protection by way of compensation, yet just 25% of people who had received a notification letter said were offered identity theft protection in that letter. The financial impact of the data breach was less significant for consumers than the emotional aspects. 81% of data breach victims said they had not out-of-pocket costs because of the breach. Conversely, 76% said they experienced stress as a result of the breach. Consumers ranked a data breach as the third-most damaging event for a company’s reputation. Only poor customer service and an environmental incident (e.g. an oil spill or pollution) were seen as more damaging. Other than getting stressed, what, then, do consumers do after they’ve received a data breach notification letter? Most do little or nothing at all, which should be just as concerning to companies as the customers who end their business relationship with a company in the wake of a data breach. More than half (55%) said they did nothing to protect their identities after receiving a notification letter, and 32% ignored the notifications and did nothing at all. This may seem counter-intuitive considering that the majority (77%) were at least somewhat to very concerned about becoming an identity theft victim because of the breach. Perhaps if these customers had been offered free identity theft protection in the notification letter, they would have accepted the offer. These survey results underscore the need for companies to send strong, informative and compassionate data breach notification letters – and to offer consumers identity theft protection as part of the company’s data breach response. Learn more about our Data Breach solutions