Identity Theft Insurance and Credit Monitoring
With the realistic threat of identity theft always looming, consumers are becoming more and more paranoid about becoming victims of fraudulent activity. With that paranoia comes the opportunity for banks, credit card companies and other similar institutions to cash in on consumer's fear. Anyone who has researched identity theft for even a short length of time has probably seen countless advertisements for credit monitoring services and identity theft insurance. But what do those things really offer and are they worth the investment?
Credit Monitoring
Certain companies are offering credit monitoring services for a fee. If you agree to pay the fee you will be notified of any change of address, new account or inquiries made on your credit file. This initially sounds like a pretty good deal, but what they don’t tell you is that your social security number isn’t monitored in all of this which leaves you vulnerable to other forms of identity theft.
Really savvy identity thieves will open accounts under an alias while using your social security number. Since the credit bureaus cannot determine which name is rightfully associated with any given social security number (because the SSN office won't release that information) if enough credit applications are filed with the same name and social security number they just assume its legitimate and a new file is created. What this means is that a credit monitoring service will not alert you to the fact that someone has opened a new credit account under your social security number but with a different name. Eventually, if each credit bureau’s computers runs enough searches the fraudulent file will eventually become attached to your own. And your credit will be ruined by the long history the thief had been running up without you even knowing it. Literally, your credit could be good one day and horrible the next--with no warning.
In theory credit monitoring services may sound like a good deal, but they aren't. If you plan to make an investment in any type of monitoring system, purchase something like Affinon's ID Secure that will monitor both your social security number as well as your credit files.
Identity Theft Insurance
Just like with all other types of insurance, identity theft insurance is offered as a way to protect yourself from possible harm. But that doesn't mean you should blindly sign on the dotted line just for peace of mind. It's important to note that the institutions offering most identity theft insurances are banks and credit card companies-the same companies that failed to protect your information in the first place. Another startling reality is that identity theft insurance does not reimburse you for any money stolen from your bank account or fraudulently charged to your credit card. Some companies offer insurance that will offer you compensation for lost wages up to $2,000 but most simply offer to cover legal fees. In many identity theft cases, no legal fees are incurred as attorneys aren't usually necessary for resolving identity theft cases. Identity theft insurance also won’t cover you at all if your identity is stolen by a family member. Since most identity thieves know the victims whose identities they steal it is highly likely that should your identity ever be stolen a family member of some kind will be involved. Therefore, any insurance you have will become null and void.
Some identity protection companies offer millions of dollars in "insurance coverage" if your identity is stolen. But take a moment to read the fine print, and you may find that these "guarantees" are worth a lot less. For example, TrustedID's $1,000,000 warranty covers all of the above only if a member suffers a stolen identity as a direct result of failure of their service. Suddenly, that million dollar claim isn’t really going to net you one million dollars should your identity be stolen.
So, in reality, identity theft insurance doesn't recover any stolen money, it doesn’t protect you from the people most likely to steal your identity and it doesn’t eliminate the time and hassle you will spend dealing with banks and creditors—who will only work with your personally and won’t allow a representative to handle the case in your place. Simply put, identity theft insurance is all talk and advertising. It’s not worth investing even a small amount of money in. So, skip it and look for free ways for identity theft protection. You'll do more good for yourself that way.
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Comments
I think some of the companies offering protection plans are doing what they are advertising. I have had a plan for which I pay around $10/Mo and since then I have not received any junk mail. I get alerts whenever there is any kind of activity in my report and above all, I have managed to take off some bad information out from my annual report.
i think someone is trying to use my name and ssn for credit card and others
Credit monitoring in itself is not enough protection. The use of an identity for credit purposes is only about 35% of all identity theft, that leaves two-thirds of all identity theft unmonitored. Social Security numbers are used to get driver’s licenses, jobs, set up housing, and many other areas.
countrywide letter stated my information was disclosed
The best solution is to put a hold on your credit report. Then, in order to get the credit report, one has to provide a pin number. Works great.
This does work great as long as the only reason someone uses your identity is for credit. What if they are setting up utilities or getting a job in your name? The number one reason somebody steals your identity is to get a job. These people are actually told not to use it for credit because it is too easy to get caught, so just get a job and rent a house.
At www.identitytheft.com we recommend ID Secure as out product of choice when it comes to protecting your information. It’s one of the most comprehensive products on the market. . For just $1 for the first month, and just $12.99 each month after that, a professional identity monitoring company will use advanced web crawling technology to search the internet and public records to make sure that your social security number, credit and ATM cards and other personal information isn’t being fraudulently used in any way. ID Secure makes sure your identity is being monitored 24 hours a day seven days a week helping to keep it safe. If fraudulent activity is suspected, you will be informed immediately.
i would like to find the status of da my credit.
i have been requesting a credit card and i alwayz get rejected.. I would like to know how to fix this problem.
if u can send me any further information regarding my situation it would be greatly appreciated..
thanks u very much.
You are write most of the companies offering credit monitoring services but they only charge. In my personal experience they don’t do anything for that services. In spite of your article is helpful to know some thing more.
Thanks
thanks,very interesting and useful
I had my social security card number stolen and would like to have any activity monitored.
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