Is Identity Theft Protection Worth the Investment?
As cyber threats evolve, many consumers are evaluating the role of identity theft protection. Longtime cybersecurity expert Neal O’Farrell helps break down the pros and cons of these services.
Image: Poike/Getty Images
Identity theft protection services have changed significantly, but they continue to spark a core question: are they worth the money? Neal O’Farrell, a veteran cybersecurity and fraud expert with over 40 years of experience, offers insight.
“I’m often asked the same two-part question at presentations I give on identity theft and fraud: Are these services any good, and can I trust the companies behind them?” he says.
The industry’s history includes scandals and exaggerated claims. Some companies inaccurately claimed they could prevent identity theft outright. Regulators, including the Federal Trade Commission and the Consumer Financial Protection Bureau, have taken action against providers for misleading marketing and poor security practices. However, with increased scrutiny, services are improving their transparency.
“Since these massive penalties were issued and increased scrutiny fell over the industry, I’ve noticed services doing a better job in more honestly describing their features and delivering what their customers sign up for,” O’Farrell notes.
What Identity Theft Protection Services Offer
Identity theft protection services now offer a range of features to protect users online, beyond just credit monitoring. Many include:
- Bank account protection
- Reimbursement for bank fraud
- Password managers
- Virtual private networks (VPNs)
- Antivirus protection
O’Farrell emphasizes the value of these services in educating and reminding users about online safety practices. Many offer regular tips for reviewing bank and credit card statements and credit reports. He recommends these services, stating: “Arming yourself with information is the best way to protect yourself online.”
Is Protection Right for You?
Identity theft protection can be valuable if:
- You can afford it. Plans range from roughly $7 to $80 per month.
- You understand its limitations. These services alert you to problems, not prevent them.
- You’ll use the features. The credit monitoring and online security tools are valuable benefits.
O’Farrell stresses it’s important to use these services actively and to be aware that no single product can eliminate all risks. He notes that data breaches happen constantly, and it’s vital to take online safety precautions.
“If you sign up for an ID theft protection service, and use it the right way, you have a very good chance of significantly improving your protection against the surging AI driven cybercrime wave,” he concludes.
Consumers should compare different companies’ prices, features, track records, and reputations. “Don’t be impressed or moved by slick marketing campaigns or celebrity endorsements,” O’Farrell cautions. “They aren’t a good substitute for a good product at the right price.”
