Is Identity Theft Protection Worth It?

What Is Identity Theft Protection?

Identity theft protection is, at its most basic, a set of services that can alert you to signs of identity theft and, if you are a victim of identity theft, help you recover from the theft.

A range of features can be included in identity theft protection programs, which are often rolled into monthly or annual subscription services. The specifics will depend on the program, but common features include recovery assistance and monitoring of various accounts, databases and websites. Sometimes, the features or level of service can also range based on the tier of service you choose.

Read more: How to Protect Yourself From Identity Theft

Is Identity Theft Protection Worth It?

Paid identity theft protection services may not be worth it for everyone because you can detect many signs of fraudulent activity—for free—on your own.

Example: You can monitor your credit, scrutinize your financial statements and pay attention to your email and physical mail. If you see an unexpected credit inquiry, charge, account change, bill or collection letter, those could all be signs of identity theft.

However, identity theft protection may be worth it if:

• You're a victim of identity theft. You may be repeatedly targeted by identity thieves who try to use your identity to open various accounts, take over your accounts or sell your information to other criminals.
• You want help monitoring your credit and financial accounts. Keeping a close eye on your information can be difficult, and you might want a single app that can monitor everything for you and alert you about important changes.
• You want to monitor additional sources. Some programs monitor databases and websites that might be difficult to track on your own, such as an address change database and dark web pages.
• You want identity theft insurance. Programs may include insurance that can help cover the out-of-pocket recovery expenses, legal fees or lost wages associated with identity theft.

Read more: How to Check for Identity Theft

What Are the Benefits of Identity Theft Protection?

Many identity theft protection services offer reactive rather than preventive features, but you may still benefit from having a consolidated and comprehensive place to track your information. Identity theft protection programs may also offer automated alerts and help with restoring your identity if you're a victim of identity theft.

The specific features and tools will vary depending on the program, but some common features include:

• Credit monitoring: Monitors your credit reports and sometimes credit scores to warn you if someone applies for or opens an account in your name, or if someone borrowed money in your name and then defaulted on the debt.
• Financial account monitoring: Monitors bank accounts for suspicious activity and warns you if someone tries to open a new account in your name, change the personal information on your account or add a new signer to your account.
• Alternative credit monitoring: Alerts you if someone uses your identity to get a loan that doesn't appear in your credit reports, such as payday loans and high-rate online installment loans.
• Dark web surveillance: Scans the dark web and alerts you if your information is found on one of the monitored dark web pages.
• Privacy scans: Finds and may help remove your information from people search websites that list public information identity thieves can use to supplement stolen data.
• Court record alerts: Alerts you if your personal information appears in court records.
• Change of address alerts: Notifies you if someone changes your address with the USPS. Identity thieves might do this to intercept new debit or credit cards that they opened in your name.
• Social Security number alerts: Notifies you if a new name or address is associated with your Social Security number.
• Identity validation alerts: May alert you if an organization tries to verify your identity, which often happens during an account opening process.
• Lost wallet assistance: Can help you cancel and replace credit cards, debit cards, your driver's license and other cards if your wallet is lost or stolen.
• Identity theft insurance: Provides coverage that may reimburse expenses incurred because of identity theft, such as legal fees and lost wages.
• Identity restoration services: Provide assistance from trained agents who can help you plan your next steps and file the correct paperwork if you're a victim of identity theft.

How Do I Get Identity Theft Insurance?

You can get identity theft insurance from different providers. Some sell it as a standalone offering, alongside other insurance policies or as part of a broader identity protection service.

The benefit can help you pay for costs related to reporting identity fraud and amending or correcting your identity, including:

• Legal and administrative fees
• Lost wages
• Required travel expenses
• Elder, spousal and child care costs
• Expenses for replacing stolen identification

Experian offers paid premium memberships with identity theft protection that covers up to $1 million in identity theft insurance.

Read more: How Does Identity Theft Happen?

Other Ways to Protect Your Identity

You can also protect your identity and personal information by implementing preventive measures on your own:

• Don't share personal information on social media.
• Use a password manager to create strong and unique passwords for all your online accounts.
• Ignore unexpected calls, emails or texts asking you to share personal information, account details or one-time passwords.
• Don't click on links or download attachments from unexpected texts or emails.
• Add a lock to your mailbox and sign up for electronic statements from your banks and credit card issuers.
• Shred documents with personal information.
• Don't carry your Social Security card in your wallet.

While there's no guaranteed way to keep all your personal information secure, being cautious and taking preventive measures is important.

Frequently Asked Questions

Is Identity Theft Protection Worth the Cost?

Identity theft protection services can be an effective way to keep a close eye on your information and make dealing with identity theft easier. But paying for a subscription might not be worth it if you already closely monitor your credit reports and bank accounts and you're not worried about the recovery process.

If you're not sure and want to see how an identity theft protection plan works, you can try a seven-day free trial of Experian's paid premium program.