It’s always a good idea to consider identity theft protection, but before you pay for it, it’s worth investigating whether you already have access to free or discounted services to monitor your information and help with recovery. While no method can completely eliminate the risk of identity theft, taking this step can minimize the risk while saving money.
Where to Find Free Identity Theft Protection
You can buy identity theft protection, which can cost $200 or more annually. However, you may be able to access free or low-cost services that you can activate. These include:
- Your bank or credit union.
- Your credit card issuers.
- Your employee benefits plan.
- Your homeowners or renters insurance.
- Organizations you belong to, such as AAA or AARP.
Also, if you’re affected by a data breach, the company involved may offer free credit or identity theft monitoring for a limited time. Watch for data breach notices in your mail or email inbox and sign up by the deadline.
Compare Levels of Coverage
Identity theft protection generally comes in two main forms: Monitoring and recovery assistance/insurance.
Monitoring: At its most basic, credit monitoring services notify you when your credit is checked, which can signal someone is attempting to open credit in your name. These services often go beyond just credit monitoring, incorporating fraud resolution services or lost wallet protection. They can also alert you to the use of your Social Security number, bank account credentials, or health insurance information.
Identity theft recovery assistance and insurance: These services help you resolve the effects of identity theft. Insurance typically helps victims recover financial losses and expenses related to identity theft. However, the amounts and types of coverage differ, and so do the required documentation to access them. Read the terms and conditions or terms of service to understand what receipts or records you might need to provide.
Find the Best ID Theft Protection Service
If you want assistance in safeguarding your information, it’s important to shop around and compare different providers of identity theft protection.
How to Reduce Your Risk of Identity Theft
The best way to reduce your risk is to make yourself less of a target.
- Credit Freeze: A credit freeze is your first line of defense because it prevents scammers from accessing your personal credit data and opening new accounts in your name.
- Social Security Number Lock: Locking your Social Security number is another way to prevent others from using it.
- Password Security: Choose long passwords and don’t reuse them. Use a password manager such as LastPass, Bitwarden, or 1Password to keep track of your passwords.
- Two-Factor Authentication: Use two-factor authentication when it’s offered, and consider an authenticator app. These apps are even more secure than receiving a code via text.
