Identity-Theft Monitoring Programs Worth a Look
Here's what to look for in a service and what you can expect to pay.
Over the years, we have cast a skeptical eye on services that charge a fee in exchange for identity-theft protection. Why pay for a company to monitor your credit reports when you can get them free? In a 2009 study, the Consumer Federation of America found that ID-theft programs exaggerated what they could deliver to customers and failed to provide clear information on their Web sites.
Now many services are backing away from hard-to-prove promises in response to a list of best practices the CFA developed. “For the most part, no identity-theft service can claim honestly that it can prevent your personal information from being stolen and misused,” says Susan Grant, CFA’s director of consumer protection. Rather, the services focus mostly on alerting you that your identity may have been stolen, notifying your credit card companies, and providing advice and assistance with the next steps.
Barry Glassman, a certified financial planner and president of Glassman Wealth Services, in McLean, Va., says he recommends ID-theft services to clients because a range of entities, from your employer to your gym, keep your personal data on file. And criminals are finding more efficient ways to grab that info, as a recent spike in data breaches shows. By using an ID-theft service, you may learn more quickly that someone has, say, applied for a credit card in your name.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What to look for. Several companies, including the three major credit bureaus (Equifax, Experian and TransUnion), provide identity-theft services for a monthly fee of $10 to $30. One feature of many plans -- including ITAC Sentinel’s basic $10-a-month package -- is card-theft or lost-wallet protection. Agents help you cancel and replace credit cards and other wallet contents (you provide your information to the service when you sign up).
ITAC’s basic service checks your report from one credit bureau. The higher-level ITAC Sentinel Plus plan ($13 a month) includes daily monitoring from all three bureaus, and you’ll receive alerts about potential problems, such as new credit card accounts listed in your file. Many programs provide insurance, such as reimbursement for notary fees, but it’s usually too limited in scope to be worthwhile, Grant says.
Some plans dig into areas that are tough for individuals to monitor. TrustedID’s IDEssentials program ($15 a month, or $125 a year) includes monitoring of your health-insurance policy on black-market sites in case your policy number is for sale; it also scans the sites for your Social Security and credit card numbers. The Identity Guard Platinum plan (recently $19 a month) also surveys the black market, and it checks public records to see whether someone has used your personal information to, say, get a driver’s license. In addition, the service offers antivirus protection and software for your computer that encrypts keystrokes.
Like some other programs, Identity Guard provides more benefits if you pay more. The Platinum Plus plan (recently $25 a month) adds monitoring of your kids’ Social Security numbers.
Before you make a decision, see whether, say, your bank or insurer offers free or low-cost identity protection. AARP members can use a special TrustedID service for $110 a year, a discount of $15. And keep in mind that there’s a lot you can do on your own to minimize the damage. Check each of your credit reports once a year at www.annualcreditreport.com, and examine statements from your bank and credit, medical and insurance providers for signs that someone has tampered with your accounts. Credit Sesame provides free monitoring of your Experian report, and Credit Karma checks your TransUnion file free.
Mary Clare Fischer contributed to this story.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
Stock Market Today: Stocks Close Mixed Amid War Angst, Nvidia Anxiety
Markets went into risk-off mode amid rising geopolitical tensions and high anxiety ahead of bellwether Nvidia's earnings report.
By Dan Burrows Published
-
What the Comcast Cable Spinoff Means for Investors
Comcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.
By Joey Solitro Published
-
Roth IRA Contribution Limits for 2024 and 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
By Jackie Stewart Last updated
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
Social Media Scams Cost Consumers $2.7B, Study Shows
Scams related to online shopping, investment schemes and romance top the FTC's social media list this year.
By Joey Solitro Published
-
How to Figure Out How Much Life Insurance You Need
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
By Kimberly Lankford Last updated
-
TransUnion Fined $23M For Tenant Screening, Credit Freezes
Government charges TransUnion over illegal rental background checks and security freezes on consumer credit reports.
By Joey Solitro Published
-
Amazon Big Deal Days Is Coming! We’ve Got All the Details
Amazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published