The adage ‘an ounce of prevention is worth a pound of cure,’ first penned by Benjamin Franklin to prevent house fires, remains relevant today in the context of identity theft. With approximately one-third of U.S. residents having experienced some form of identity theft, ranging from credit card theft to tax and insurance fraud, protection against this crime is a growing concern, especially following recent high-profile data breaches.
Many consumers instinctively turn to familiar brands like Norton, Equifax, or McAfee for protection. These companies offer various plans, often available for just a few dollars a month or sometimes for free. However, the effectiveness of these identity theft protection services depends on what you’re looking for. Typically, they offer account monitoring, alerts, and restoration support, which means they respond to identity theft after it has occurred rather than preventing it.
Do ID Theft Protection Services Really Work?
According to Mitch Mayne, a cybersecurity consultant and former incident responder for IBM Security X-Force, ‘ID protection services largely entail cleanup rather than prevention.’ While these services can offer some benefits to victims, they also create a false sense of security, leading users to neglect basic cyber hygiene. Aura, a company providing identity theft protection plans, suggests that monitoring and fraud alerts are valuable but can be done independently without a paid service.
If you decide to pay for ID protection, it’s crucial to understand that not all plans are created equal. The best plans include features like VPNs, which hide your IP address and encrypt your data, and password managers, which generate and store unique passwords for each account. A password manager is particularly valuable as sign-in credentials are frequently compromised and sold on the dark web.
Many plans come with features like identity theft insurance and live restoration support. However, it can be challenging to get an insurance claim approved, and even with professional help, resolving identity theft issues can take years.
Multipronged Approaches to ID Protection
Combining targeted services with good habits can enhance your protection. For instance, DeleteMe helps remove your personally identifiable information from data-broker websites, starting at $8.71 a month. 1Password is a well-reviewed password manager with advanced security features, starting at $2.99 a month. Comprehensive monitoring services like Aura and IDShield offer credit monitoring, password management, and VPNs, with plans starting at $9 and $14.95 a month, respectively.
Free ID Protection Alternatives
You may already have access to free identity theft protection services through your financial institutions or employer. For example, Mastercard offers free restoration and monitoring services for its credit card holders. You can also use free online services like Have I Been Pwned to check if your information has been compromised in a data breach. Setting up a credit freeze with the three national credit bureaus (Experian, Equifax, and TransUnion) can prevent unauthorized credit inquiries.
Best Practices for Identity Theft Protection
The most effective defense against identity theft is taking consistent, free preventative actions. This includes using unique, complex passwords for each account, enabling multifactor authentication, and keeping your software up to date. Avoid clicking on links or attachments in unsolicited messages, as they may lead to scams or malware.
By understanding the available services, leveraging free resources, and practicing good cyber hygiene, you can significantly reduce your risk of falling victim to identity theft.
