Greg's Corner

Car insurance websites used in identity theft scheme

By Greg Collier

Some licensed drivers in the state of New York recently found themselves receiving bills for car insurance that they didn’t purchase. It seems that the system used to give consumers insurance quotes online had a flaw that allowed identity thieves to find personal information for anyone licensed to drive in the state of New York. Much like other identity theft schemes, the thieves used information that was leaked in a previous data breach to use on the insurance websites. During the quoting process, identity thieves were able to obtain the driver’s license numbers of anyone they had information on.

The identity thieves were then able to buy legitimate car insurance policies in other people’s names. While many people buying the stolen cards may not be able to afford the prohibitive cost of car insurance, the majority of the buyers probably have records that prevent them from driving legally. The identity thieves could also be using the driver’s license numbers to file for fraudulent unemployment claims. Some of the policies may even still be active as some drivers may just ignore the bills since they don’t really have a policy with the insurance company the identity thieves used. Some consumers have said that they have had great difficulty in getting the matter resolved with the insurance companies.

The insurance companies have said that the problem with their websites have been fixed. At least one insurance company is providing victims with one year free service of credit monitoring.

If you live in New York and have received a bill like this, it is strongly recommended that you contact the insurance company right away to get the matter resolved. If you don’t live in New York, you can use this as an example if you receive a bill for something you didn’t purchase yourself. Don’t just ignore or throw out the bill. Get in touch with whoever sent the bill immediately to make sure your identity hasn’t been stolen. If you don’t take the proper precautions in protecting your identity, it could take years before it’s repaired.