Is Identity Theft Protection Worth the Cost?
As the threat landscape evolves, many people wonder if identity theft protection services are a worthwhile investment. With cybercrime and fraud on the rise, is it better to proactively protect yourself? Neal O’Farrell, a cybersecurity expert with over 40 years of experience, offers his perspective.
O’Farrell, who has advised various identity theft protection companies, acknowledges a degree of skepticism. “At just about every presentation I’ve given on identity theft and fraud, I get asked the same two-part question: Are these services any good, and can I trust the companies behind them?”
“The answer is complicated,” he says. The industry has faced scrutiny, with some companies exaggerating their capabilities. For instance, the Federal Trade Commission (FTC) took action against LifeLock in 2010 for falsely claiming it could prevent all forms of identity theft. The FTC also accused LifeLock of failing to adequately protect customer data. The Consumer Financial Protection Bureau (CFPB) has also fined providers like Affinion Group for deceptive practices.
However, O’Farrell notes that the services have improved significantly, and many offer valuable features. “They offer identity protection, but with a greater focus on your online safety.”
What ID Theft Protection Offers
Many services offer multiple benefits, which include:
- Credit monitoring from all three major bureaus.
- Alerts if new credit accounts are opened under your name.
- Reimbursement for bank fraud and other financial losses.
- Password managers, virtual private networks, and antivirus protection.
- Weekly reminders to check bank and credit card statements.
O’Farrell values the reminders and educational features of these services. He notes that the information helps you stay vigilant, which is the best approach to protecting yourself.
Limitations
It’s crucial to understand that identity theft protection does not prevent ID theft. Instead, it can alert you when something is amiss so that you can take steps to mitigate damage.
Dark web scans are a popular feature, but their usefulness is limited. Millions of records are added monthly due to data breaches. No vendor can scan all the sources, so it’s best to assume your information is already compromised and take precautions.
Is Identity Theft Protection Right for You?
Consider signing up for identity theft protection if these conditions are met:
You can afford it: Plans can range from around $7 to $80 per month, depending on coverage. You understand the limitations: It can’t stop identity theft, but it can alert you to problems. You can use the included features: Take advantage of credit monitoring and online security tools.
O’Farrell advises thorough research and comparing providers based on reputation, features, and price, not marketing campaigns. With the rise of AI-driven cybercrime, a good identity theft protection plan could significantly improve your security.
