Insurance firm to cover identity theft legal costs

A RISE in the number of cases of identity theft has prompted a leading insurance company to provide cover to people affected by this type of fraud.

Some householders are finding that their addresses are being falsely used by people taking out hire purchase agreements and other personal loans. They use the “stolen” addresses to divert victims’ post, and eventually to secure credit.

The bad debt that results ends up being prosecuted against the innocent party whose identity has been misappropriated.

Axa Insurance has decided to offer a new policy that would cover the legal expenses incurred by victims of these cases — up to a limit of €65,000.

As well as false addresses being provided by applicants for credit, the internet is being used for identity fraud as “phishers” obtain banking details and then use them to drain victims’ accounts.

According to an Axa representative, identity theft is on the increase in Ireland, in line with other developed countries.

Axa will be liaising with the Garda Bureau of Fraud Investigation as it looks into the problem, which can affect victims’ credit rating if bad debts are registered against them, as well as leave them out of pocket.

Victims also have to contact organisations to let them know of the identity theft, and such costs will be covered by Axa.

It is expected the policy will be marketed at high-earners.

“It [the policy] is just in its embryonic stages [of development] at the moment,” the representative said.