These Services Alert You to Identity Theft. Are They Worth It?
A number of services promise to notify you if you are a victim of credit fraud. But you'll pay a hefty fee.
The problem with identity theft is that you probably won't know when your personal data has been stolen–or even whether you've been a victim. A recent study by Javelin Strategy & Research found that the number of identity-fraud victims in the U.S. totaled 16.7 million in 2017. But that's only the tip of the iceberg, because the data of many millions more Americans has been exposed and may be used in the future to open fraudulent accounts. Last year's Equifax breach alone exposed addresses, birth dates, Social Security numbers and other sensitive data for nearly 146 million people, launching them into ID fraud limbo.
Enter ID theft protection services. For $10 to $30 a month, they will alert you via text, e-mail or mobile app if they detect (or suspect) misuse of your data or accounts–perhaps sooner than you'd notice on your own–and to walk you through repairs.
Do you need an ID theft protection service? That depends on how much you're willing and able to do by yourself. Most paid plans offer at least one tier that watches over all three credit bureaus at once and can flag changes to your reports–such as the appearance of a new credit account–more quickly than you might detect by ordering your once-a-year freebies from www.annualcreditreport.com. Moreover, a good service will sweep online databases to see if your personal details pop up in court records, payday loans, sex offender registries or applications for new financial accounts. The service will also keep an eye out for address changes that could suggest a criminal is trying to reroute your mail, and it might look out for unfamiliar names or addresses linked to your SSN, too.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
ID theft protection services often scour the secret chat rooms and black-market websites of the "dark web" for evidence that your SSN, e-mail address, driver's license number, passport number, mother's maiden name and other identifying info are up for grabs. "Some of this monitoring is challenging or dangerous to do on your own without the technical know-how," says Eva Velasquez, president of the Identity Theft Resource Center. And although freezing your accounts is an important preventive step, it won't stop a crook from fiddling with your existing accounts.
Monitor to the max. A comprehensive package includes four main services: monitoring your credit report, monitoring other data tied to your identity, dealing with the aftermath of ID theft, and covering certain costs to restore your identity.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Setting Objective Criteria for Employee Bonuses Aligned With Company Goals
When employees win, the company wins.
By Stephen Nalley Published
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
403(b) Contribution Limits for 2024: Good News for Teachers
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Last updated
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Last updated
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
Social Media Scams Cost Consumers $2.7B, Study Shows
Scams related to online shopping, investment schemes and romance top the FTC's social media list this year.
By Joey Solitro Published
-
How to Figure Out How Much Life Insurance You Need
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
By Kimberly Lankford Last updated
-
Amazon Big Deal Days Is Coming! We’ve Got All the Details
Amazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published