Glossary
Identity theft restoration, defined
A service, sold as an endorsement or bundled with a monitoring product, that assigns a case manager to undo the damage after someone opens accounts, files tax returns or commits crimes in another person's name.
In practice
The work is administrative and slow: disputing fraudulent accounts with creditors, placing freezes and alerts with the credit bureaus, filing police and federal trade commission reports, correcting records with the motor vehicle department or the tax authority, and sometimes clearing criminal records. The endorsement typically also reimburses expenses the victim incurs: notary fees, certified mail, lost wages for time off to deal with it, and attorney fees, up to a limit. It does not reimburse money stolen from accounts, which is the bank's or card issuer's problem under their own rules. Home and renters policies often add it for a small premium; standalone products add monitoring and larger reimbursement limits.
A worked example
Suppose a retiree learns a stranger opened three credit cards and a car loan in his name. He spends forty hours over four months on the cleanup. The endorsement's case manager handles the disputes, and its $25,000 reimbursement limit covers his $1,200 of lost wages and fees. Hypothetical.
Applies to: Identity Theft ProtectionHome Insurance