Allstate Launches Fraud Protection to Protect Employee Funds from Rising Cyber and Crypto Fraud
Key Takeaways
- Allstate introduces Scam Protection, a new workplace benefit that covers modern threats including scams, ransomware and cryptocurrency theft, which includes an initial refund of up to $50,000 of guaranteed fraud losses.
- Employers turn to Allstate amid record-breaking cybercrime trends. The insurer saved customers $33.2 million last year in potential losses, with holiday shopping periods like Black Friday and Cyber Monday driving dramatic increases in fraud claims.
- Allstate Scam Protection is available to nearly 7 million people and their families through employer benefits.Companies are adding it benefits packages to protect employees’ personal finances during open enrollment.
- The provision goes beyond workers to protect family members, including elderly parents aged 65 and over, regardless of where they live.
Cyber crime is on the rise, straining household finances and workplace productivity. Allstate Identity Protection recovered $33.2 million in potential loss of customer identities in 2024, and the fourth quarter alone cost $9.8 million.1. New account fraud accounted for $23.3 million in actual losses last year, while fraudulent claims added $5.5 million in potential exposure. Each identity theft case takes time and resources to resolve, draining employee time and productivity that often exceeds a workday.
The new protection comes as cybercrime ramps up during the holiday shopping season, especially around Black Friday and Cyber Monday, when phishing scams, fake sellers and social media scams are rampant.
“Fraud costs employees time, money and productivity, which impacts their families and their finances,” said Caroline Slane, senior vice president of business operations at Allstate Identity Protection. “This new fraud protection fills the void by putting money back into people’s hands so they can get back on track.”
What does Allstate Scam Protection cover?
Allstate Scam Protection goes beyond traditional identity theft products by covering new ways criminals steal money online with few exceptions. Here are the entries:
- Refunds for scams, digital crime and social engineering: Includes unlimited claims up to $50,000 per year.
- Cryptocurrency Theft: Returns up to $50,000 a year in crypto stolen as a result of cybercrime.
- Web, email and mobile protection: It ensures safe web browsing, protects and alerts against fake texts, emails, links, robocalls and robots.
- Family coverage: The benefit covers unlimited family members, including youth and seniors 65 and older, providing protection for those most at risk, even if they live outside the home.
- Scam reduction: Customers can report malicious URLs directly to Allstate’s Internet experts for removal.
- Personal training: One-on-one sessions with Allstate Identity Protection professionals to create protection plans tailored to individuals and families.
Why do employers add Allstate Scam Protection to benefits packages?
Allstate Identity Protection products are already widely available in employee benefits packages at 4,500 companies comprising a quarter of the Fortune 500. Employers add Allstate Scam Protection because:
- Fraud losses to reach $12.5 billion by 2024, according to the FTC2. Although the number of fraud reports remains low, more people have lost money compared to last year.
- AI has a very burnt out scam. AI fuels phishing emails, impersonating texts and deep voices or videos that are almost impossible to see.
- Cybercrime impacts workplace productivity. Employees are vulnerable whenever and wherever they use the tools, and manage fraud detection during business hours when banks and government agencies are open.
How can consumers protect themselves during the holiday shopping season?
Holiday scams increase on Black Friday and Cyber Monday. Allstate recommends:
- Slow down before you buy. Be aware of hard-to-find items on third-party sites and avoid sellers who demand gift card payments.
- Protect your wallet and identity while shopping online. Pay with credit cards, track purchases, update device software and avoid clicking on links in strange texts or emails.
- Use digital wallets in stores. They encrypt payment information and reduce the chance of card skimming or data theft.
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Editor’s Note:
The data is based on identity restoration and threat cases reported by Allstate Identity Protection customers in the US between January 1 and December 31, 2024. Figures quoted represent both actual values and potential dollars saved. Real dollars show financial losses that bad actors have successfully accessed and used as fraudulent loans or charges made on a stolen credit card. Dollars are possible represents the remaining financial exposure related to fraud, as the unused portion of the credit limit still available to the bad actor. This analysis aims to raise awareness of the financial impact of identity theft and the importance of effective protection during high-risk periods such as the holiday season.
About Allstate
Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with affordable, simple and connected protection cars, homes, electrical appliances, again ownership. Products are available through an extensive distribution network including Allstate agents, independent agents, major retailers, online, and in-store. Allstate has more than 209 million policies in force and is widely known by the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com.
1The data is based on identity theft and threat cases reported by Allstate Identity Protection customers in the US between January 1 and December 31, 2024.
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