Sample Business Paper on Identity Theft

Identity theft is a crime that involves wrongfully obtaining and using another person’s data to commit a fraud. The stolen information can be used to apply for credit, medical status, or file tax returns. The crime causes victims problems such as financial loss and it is worsened by the fact that sometimes the victims remain oblivious of it for a while. In 2016, millions of Americans experienced ID theft according to Javelin Strategy and Research 1 in every 16 people suffered id theft in the last one year (Al Pascual et al). According to the survey conducted by, 41 million Americans had their identity stolen. The research also revealed that over 49 million knows of someone who has been affected by identity theft (Cetera 2016).

I believe methods of identity theft keep on changing day by day. I guess the growth of social media makes it hard to prevent identity theft although is possible to reduce identity theft. I propose precautions such as not giving strangers personal information to be observed. Not leaving wallet or purse in an open place where strangers can access personal details I think can help in minimizing theft. I recommend storing documents such as account statements in a safe place and not carrying cards that are not frequently to reduce chances of criminals accessing your personal information. I would advice personal information such date of birth, real names not be used on social media platforms since they verify someone’s identity and can be used to access accounts.

In protecting credit cards, I recommend placing of security freezes and fraud alerts to ensure that there no one who can access credit report except financial institution which you are attached. If a lender cannot view credit report, it is hard to give someone else credit in another person’s name. Installing firewalls and strong passwords in personal computers, and mobile phones is another method I recommend in the protection of personal information in case the devices are stolen or lost. I urge regular reviewing of individual data files and accounts periodically as it helps in keeping track of account. I would advice in case of a fraud alert, report immediately to the responsible bureaus. I agree with that many people conduct business and other sensitive banking business in an open Wi-Fi network which makes hackers to hack into other peoples accounts easily. I advise on avoiding using banking or shopping in public networks.

In my understanding, cyber liability policy is designed to cover consumer of technological services or products.  The plan includes both liability and property losses that may occur when a business engages in electronic activities which involve the use of the internet. In my knowledge, cyber policies cover business liability for data breach which the company’s customer’s personal information are exposed or stolen by a criminal who has gained access to the company’s electronic network. I understand the policy covers expenses associated with data breaches such as notification cost, cost to defend claims by state regulators and loss that occurred out of identity theft.

In my understanding of insurance policies, cyber liability policy varies from one insurer to another. The insurer can offer third party liability coverage or offer first-party coverage. Some of the third party liabilities in cyber liability include network security liability, network privacy liability and electronic media liability. In network security liability, the insurance covers lawsuits against a particular institution due to data breaching or inability of others to access data in the institution’s computer system (Cleveland 2015). The coverage may also apply if the data breach is due to virus attack or unauthorized access by a hacker. Network privacy liability covers lawsuits based on firm’s failure to protect sensitive data stored on the firm’s computer system. Electronic media liability covers lawsuits against a particular company on acts of defamation, invasion of privacy or domain name infringement. The actions are only included if they result from firm’s publication of electronic data on the internet.

First party coverage in cyber liability covers loss or damage of electronic data, loss of income or extra expenses, cyber extortion losses, notification costs, and impairment of firm’s reputation. Injuries caused by damage to electronic data in the absence of physical impairment are covered by the cyber liability. Under cyber extortion, the coverage applies when a hacker breaks in a firm’s computer system and threatens to damage the data unless a sum of money is paid. The cyber extortion refers to the expenses a firm incur due to the extortion demand and payment paid to the hacker. A data breach can damage firm’s reputation thus why some policies cover the cost incurred when building the status of the company again. The plan also includes the cost accrued when notifying parties affected by the data breach. Cyber liability also covers losses caused by acts of violence committed for political purposes (Monisha & Yongpeng 50).

I think it is essential for firms to take covers to insure their computer systems against cyber-attacks as commercial property policies apply only when physical damage has occurred, unlike cyber liability policies which cover the data. The plans help build the firm’s reputation in case its data or client’s data is exposed. The company is supported to recover on income losses incurred as a result of physical loss like fire. In case of a lawsuit, a firm covered by the cyber liabilities can hire an attorney to speak on behalf of the company.



Works Cited

Monisha, Manoharan, & Yongpeng Yang, Suzanne “Barber Modelling and analysis of identity threat behaviours through text mining of identity theft stories, Computers & Security”, Vol. 65,  2017, Pp. 50-63.

Kahn, William, Roberds  “Credit and identity theft, Journal of Monetary Economics”, Vol. 55, 2008, Pp.251-264.

Markus, Jacobsson, & Alex Tsow  “Identity Theft Computer and Information Security Handbook”, 2009, Pp 519-549

Patrick Hille, Gianfranco Walsh, & Mark, Cleveland “Consumer Fear of Online Identity Theft: Scale Development and Validation,’ Journal of Interactive Marketing,  Vol. 30, 2015,Pp. 1-19

SeungYeop, Paek, & Mahesh, Nalla, ‘’The relationship between receiving phishing attempt and identity theft victimization in South Korea, International Journal of Law, Crime and Justice’’,  Vol. 43, 2015, Pp.626-642.

Cetera, Mike. “Bankrate survey: Americans are making it way too easy for ID thieves”     Bankrate. Personal Finance, 11 oct 2016.Web. 18 Nov 2017

Pascual , Al et al “Identity Fraud: Securing the Connected Life”Javelin .Javelin,

1 Feb 2017. Web. 18 Nov 2017