Just under 50% of financial advisers believe they have a role to play in protecting their clients from the risk of identity fraud, new research from Zurich has found.
A survey, conducted by Beaton Consulting on behalf of the insurer, asked advisers whether they would be prepared to add assist their clients by offering support to help mitigate the risk of identity fraud. 45% of those surveyed said they would be willing to offer this service, compared with 37% who said it was not their issue to solve.
The insurer commissioned the research after new rules were introduced in the United States, requiring certain types of financial adviser to develop written identity theft programs on behalf of their clients.
According to the US Department of Justice, approximately 7% of US households are the victims of identity theft each year. Further, experts estimate that around 740 million data records were exposed during 2013. This figure is expected to grow significantly, driven by the expanding ‘internet of things’ and an increasing reliance on other data led technologies, including RFID chips, commonly seen in ‘tap and go’ credit cards, passports and mobile electronic devices.
Financial products in particular represent a high category of risk
“Whilst most consumers welcome the convenience afforded by online accounts, apps and RFID enabled ‘tap and go type cards, the associated risks of such so much data being shared so easily are often overlooked, “said Zurich’s GM of Retail Life and Investments, Philip Kewin.
“Financial products in particular represent a high category of risk, due to the volume of sensitive personal financial and health data often required in establishing investment instruments and life insurance policies, and it wouldn’t surprise me to see some sort of regulatory interest, and possibly action, in this area.
“A digit PIN is often the only line of defence stopping hackers accessing this information, and given the extent to which people tend to choose similar PINs and passwords across accounts, it’s a pretty thin line,” he said.
Mr Kewin said he expected an increasing number of advisers to see the importance of managing this type of risk.
“In my experience the best advisers protect their clients’ wealth and lifestyles by looking at every type of risk that threatens their financial well-being; increasingly that including the risks posed by identity theft.”
