Is identity theft insurance included with American Express credit cards?

Identity theft insurance is a specific form of consumer insurance for individuals wanting to offset the risk that they will become a victim of identity theft crime. The average victim in the United States will spend anywhere between $600 – $1,800 to recover from their identity being stolen. This cost arises from expenses such as lost wages, legal fees, professional advice, and phone bills. Identity theft insurance does not fix credit score, it covers financial expenses for an individual to personally achieve this under their own efforts.

Insurance policies start from $20 per month and can reach up to $200-$300 dollars. It is wise to read the terms and conditions of an identity theft insurance policy carefully before purchasing as some exclude important financial liabilities such as legal fees. It is also worth noting that a growing number of home insurance and rental insurance policies include identity theft insurance as standard.

Victims of identity theft usually have their personal information such as name, date of birth, social security number, street address, credit card number, and other identifiable details stolen. This information is used by criminals to establish lines of credit with banks and other financial providers in the form of credit cards, bank accounts, insurance policies, unsecured loans, and even mortgages. Usually by the time the victim is aware that all of these actions have occurred it is too late to resolve the situation easily, as the criminal has disappeared with the borrowed money taken out in the victim’s name. It is quite often a long and tiresome process to unwind all of the criminal’s actions. Most notably, the average victim will find spend anywhere from several months up to two years repairing their credit score. Around 50% of identity crime is the result of lost, stolen, or carelessly placed physical documents such as passports, check books, credit cards, and drivers licenses. The other 50% is data gleaned electronically through such activities as online phishing scams and malicious ATM devices.