IN THE BOARDROOM™ with...
Ms. Deb Harmon, MBA
Project Manager
Identity Theft
Property Product Office
Nationwide Financial Services (NYSE: NFS)
SecuritySolutionsWatch.com:
Thanks for joining us today, Deb. Please give our audience an
overview of your background and your role at Nationwide.
Deb Harmon: I’ve worked for Nationwide almost 21 years.
My career background is quite diverse, but the most rewarding and
challenging opportunities have focused on project management in
which new products are introduced into the marketplace. While in
this role, I have supported various initiatives aimed at returning
the homeowners line to profitability. Most recently, I helped
develop and implement the identity theft endorsement, which is
available to homeowners, tenant, and condominium policyholders. My
extensive project management experience has been invaluable in
achieving record speed-to-market success with this product. Due to
the overwhelming success of this product, a $99 standalone policy
was launched first quarter 2006.
SecuritySolutionsWatch.com: Nationwide recently announced that
it has expanded the availability of its’ ID Theft Protection
coverage. We understand that this coverage was initially available
as an endorsement on homeowner policies and now it’s available
as a standalone product. Is there any data or study you can share
with us regarding how the popularity of this product has grown?
Deb Harmon: Almost every day brings the emergence of a
story about a security breach, a new ID theft scam, or tips to
prevent becoming a victim. Due to the success of our $45
endorsement, the next logical step was to offer a true standalone
policy which can be purchased by anyone, regardless if you’re a
Nationwide policyholder or not. The sales of our endorsements have
been closely monitored and exceeded initial expectations. The
product is was a success because:
- It was launched at the right time.
- The public has educated itself and has been proactive in
purchasing this coverage.
- Agents recognized the importance of this product
- It is competitively priced, provides more coverage, and
includes a comprehensive identity restoration service.
Later this year another valuable enhancement will be added to
our coverage at no extra charge. This service will continue to
distinguish Nationwide’s products in the identity theft market
arena.
SecuritySolutionsWatch.com: What are the main benefits and
features of this ID Theft Policy and what does it cost?
Deb Harmon: Nationwide has introduced two ID theft products
that are competitively priced in the marketplace; our offering
includes insurance plus a restoration service that goes far beyond
what is available from our competitors. Our endorsement can be
added to a homeowners, tenant, or condominium policy for $45
annually. The standalone policy can be purchased by anyone for $99
annually.
Nationwide’s ID Theft coverage is a bargain. On its own, ID
Theft Assist recovery and restoration service costs $150 a year,
per household. Due to our association with ID Theft Assist, we are
able to provide our policyholders access to a superior ID theft
restoration service together with our insurance coverage. Due to
this partnership, Nationwide policyholders have access to a
superior ID theft restoration service, plus the insurance
coverage.
Both the endorsement and the standalone include the same coverage:
1. Insurance coverage that caps at $25,000 with no
deductible. This covers:
- Lost income (maximum $250 a day; total of $5,000).
- Attorney fees.
- Costs of executing affidavits
- Costs of certified mail and long-distance phone calls
- Loan reapplication fees
2. The service recovery component of our product quickly
addresses the steps necessary to restore a customer’s identity.
Nationwide has partnered with ID Theft Assist to offer
best-in-class ID theft recovery protection. If a customer becomes
the victim of ID theft, an experienced advocate works on their behalf to restore their identity. With our coverage it’s not necessary to pay additional fees, purchase kits, or be told what to do. The burden of recovery is removed from the victim and handled by experts in the field. Some of the services offered include:
- 24/7 call-center that captures all necessary information and
offers a live person to speak with at any time.
- Real-time technology, including direct on-line access to
TransUnion.
- Provides the FTC’s uniform ID theft affidavit, answers any
questions with regards to completing and submitting the
affidavit to the proper authorities, credit bureaus, and
creditors.
- Obtains list of creditors to be contacted: contacts them
with separate itemized fraudulent account statements for each
fraudulent occurrence. Assist the customer with
itemizing.
- Notifies the three major credit-reporting agencies of the ID
theft; puts a fraud alert on their credit reports.
- Assists the customer with replacing driver’s license,
passport, Social Security card, and any other identifying
documentation.
- Translates whenever necessary in the event the caller is
overseas and needs help communicating with the local police in
order to file a report.
- Provides emergency cash advance to customers when theft
occurs away from home (must be secured with a credit card).
- Arrange access, when needed, for up to three in-person
sessions with a professional in our national network of
Behavioral Specialists to help the Covered Member deal with
the emotional trauma of Identity Theft.
SecuritySolutionsWatch.com: It seems to be front page news
on a regular basis… personal data for tens of thousands of
consumers getting “lost” or stolen from a major financial
institution. Is the problem getting better or getting worse? Are
government mandates to secure data at financial institutions and
in healthcare environments helping?
Deb Harmon: There are many reasons why data spills or theft
are common today. First, organized -- as well as unorganized --
crime has targeted business' customer and associate data, because
there is a vigorous and active international market for this type
of information.
There are also many state and federal laws, including the
Gramm-Leach-Bliley Act, HIPAA, FACTA, that require companies to
safeguard customer data, as well as 23 state laws and several
federal banking regulations requiring customer notification in the
event of a data privacy breach. The later set of laws have
resulted in over-notification in some respect, because many of the
most public events are process or operational errors -- mismailing
and lost tapes -- rather than intentional criminal acts.
In a bizarre twist, the government security mandates have also
resulted in an escalating battle between the bad guys and the good
guys, as the former create ever more innovative ways to stealing
data and the later react to counter these threats.
SecuritySolutionsWatch.com: “Phishing” threats are becoming
more prevalent and sophisticated yet many end-users do not
understand how a “Phishing” attack may lead directly to
Identity Theft. Please give us an overview of this type of threat
and what people can do to protect themselves?
Deb Harmon: “Phishing” involves inquiries about your
personal information (SSN, passwords, account numbers, etc).
Typically, this is encountered on-line using a phoney e-mail or
luring customers to a look-alike site, but it can happen over the
phone as well. There are a variety of ways to avoid the
“phishing” trap. I recommend the following steps:
- Never open e-mails if you don’t recognize the name of the
sender.
- Never provide sensitive information in an email you have not
initiated. If you do receive a suspicious email, contact your
credit card company or bank directly.
- Do not respond to these emails. Reputable companies do not
send notes asking for information to be verified.
- By no means provide any personal or sensitive information to
someone that
has initiated a call. Many scams exist to retrieve personal
information; one of the latest ones I have heard about
involves failure to appear for jury duty.
- Be alert and sensitive. If things seem too good to be true,
it probably is.
SecuritySolutionsWatch.com: Nationwide.com
offers a number of resources for the protection of consumers. How
about an overview of these resources for our audience.
Deb Harmon: Currently, www.nationwide.com
offers two On Your Side® stories to educate consumers and protect
customers. One story focuses one a “phishing” scam where
callers are being advised their bank accounts have been
compromised and posted on the internet. The scammer requests your
personal information to “verify” your account information.
This type of scam and other variations have surfaced in Alabama,
Illinois, Indiana, Michigan, Ohio, Texas and Wisconsin.
Another article centers around our ID theft protection (what it
covers), and the steps you can take to prevent becoming a victim.
SecuritySolutionsWatch.com: Thank you very much for your time
today, Deb. Is there any other subject you would like to talk
about?
Deb Harmon: I encourage your readers to visit www.nationwide.com.
A comprehensive list of ways to reduce your chances of becoming an
identity theft victim are located on our site.
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