Is Identity Theft Protection Worth the Cost?
As online threats evolve, many are considering identity theft protection services. Offering tools like online safety features and credit monitoring, these services promise peace of mind. But are they worth the expense? I’ve spent over a decade, as a cybersecurity expert, examining these services from the inside out.
A cybersecurity expert, Neal O’Farrell with over 40 years of experience in cybersecurity and fraud prevention.
One of the most common questions I get is, “Are these services any good, and can I trust the companies behind them?” The answer is complex.
The Industry’s History
The identity protection industry has faced scrutiny, with companies experiencing lawsuits and financial penalties. Often, these companies have been found to exaggerate what they can do. For example, the Federal Trade Commission (FTC) charged LifeLock, now owned by Gen Digital, with falsely claiming they could prevent all forms of identity theft. The FTC also cited inadequate customer data protection and failure to promptly alert subscribers to security breaches. Other companies, like Affinion Group, have also faced fines for deceptive practices, such as enrolling customers in services without proper consent.
Modern Identity Theft Protection
Despite past issues, services have improved transparency and are delivering on their promises more reliably. Today’s offerings go beyond mere identity protection; they focus on online safety. These services often provide various features like:
- Bank account protections
- Reimbursement for bank fraud
- Password managers
- Virtual private networks (VPNs)
- Antivirus protection
One of the biggest advantages is the constant reinforcement of good security habits. Many services regularly remind users to check bank and credit card statements and review credit reports – helpful practices that protect individuals.
Credit Monitoring
Identity theft protection frequently includes three-bureau credit monitoring, which alerts users if any new credit accounts are opened. Such services provide an extra layer of security, as they help people pay better attention to their credit. Though free credit freezes are available, few people use them, so these services can be useful.
Is it Right for You?
Identity protection services could be valuable if these three things are true:
- Affordability: Costs vary, with family plans potentially ranging from $30 to $80 monthly while individual plans might run from $7 to $20.
- Understanding Limitations: These services can’t prevent identity theft but can alert you if something is amiss.
- Feature Utilization: Make use of credit monitoring and online security tools.
The Bottom Line
Signing up for identity theft protection and expecting complete security is unrealistic, particularly with the rise of AI. Data breaches mean your information is more than likely already out there. Constant dark web scans aren’t always effective because stolen data is often hidden. However, if you choose a service and use it effectively, it greatly improves your chances of defending against cybercrime. Research different services, including their prices, features, track records, and reputations. Don’t be swayed by marketing or celebrity endorsements.
