Identity theft has become a growing concern in the digital age, with millions of people falling victim to various forms of identity fraud each year. This rising threat has led to the emergence of identity theft protection services that promise to safeguard your personal information and provide assistance if your identity is compromised.
But do you really need to pay for these services? In this article, we’ll explore the value of identity theft protection, the costs involved, and how to determine whether investing in such a service is worth it for you.
Is Identity Theft Protection Worth the Cost?
The question of whether identity theft protection is worth the cost depends on several factors, including your personal risk level, financial situation, and how much peace of mind you value.
Identity theft can lead to severe consequences, including financial loss, damage to your credit score, and significant time spent on recovery efforts. For some, the protection and support provided by identity theft services are invaluable; for others, it might seem like an unnecessary expense.
What Does Identity Theft Protection Do?
Identity theft protection services are designed to monitor your sensitive information, alert you to suspicious activity, and help you recover if your identity is stolen. These services typically include:
- Identity Monitoring: Continuous monitoring of your personal information, such as Social Security numbers, bank account details, and credit card numbers, across public records, the dark web, and other platforms where your data might be exposed. If your information appears in a suspicious context, you’ll be notified immediately.
- Credit Monitoring: Most services offer one or three-bureau credit monitoring, which tracks changes in your credit report, such as new accounts opened in your name or unusual credit inquiries. This early detection can prevent further damage.
- Dark Web Monitoring: Scanning of the dark web for your personal information, which is often sold or traded by cybercriminals. Alerts are sent if your data is found in these illicit markets.
- Identity Recovery Services: In the event of identity theft, these services provide expert assistance to help you restore your identity. This might include contacting credit bureaus, banks, and government agencies on your behalf.
- Identity Theft Insurance: Many identity theft protection services offer insurance that covers costs associated with restoring your identity, such as legal fees, lost wages, and even stolen funds.
- Digital Security Tools: Some services include additional cybersecurity tools like antivirus software, VPNs, and safe browsing features to protect you from online threats that could lead to identity theft.
While these features can be beneficial, it’s important to note that no service can guarantee 100% protection against identity theft. Much of the value comes from the convenience and peace of mind these services provide, as they take over the often time-consuming tasks of monitoring and responding to potential threats.
How Much Do Identity Theft Protection Services Cost?
The cost of identity theft protection varies widely depending on the provider and the level of coverage. Basic plans may start as low as $7 per month, while comprehensive family plans can cost upwards of $50 per month. It’s important to understand what each plan includes and whether the additional features justify the higher cost. Below, we’ve reviewed some of the top identity theft protection services to help you determine which might be the best fit for you.
1. Identity Guard
Identity Guard is one of the most established names in identity theft protection, with over 25 years of experience and millions of customers. The service offers comprehensive monitoring of over 70 different types of personal information, including your Social Security number, bank account details, and driver’s license. Identity Guard’s plans also include three-bureau credit monitoring, dark web surveillance, and a $1 million identity theft insurance policy.
- Value Plan: $7.20/month (individuals), $11.99/month (families)
- Total Plan: $15.99/month (individuals), $23.99/month (families)
- Ultra Plan: $23.99/month (individuals), $31.99/month (families)
The Ultra Plan provides the most comprehensive coverage, making it the best value for those who want robust protection.
2. Aura
Aura is a newer player in the identity theft protection market, but it has quickly gained a reputation for its all-in-one solution that includes identity theft protection, credit monitoring, and digital security tools. Aura’s service is particularly user-friendly, with a mobile app that allows for easy management of your account and alerts.
- Individual Plan: $15/month
- Couple Plan: $29/month
- Family Plan: $50/month
Aura’s Family Plan stands out for its extensive coverage, including parental controls and protection for up to five adults, making it ideal for larger households.
3. Experian IdentityWorks
As one of the three major credit bureaus, Experian offers a robust identity theft protection service through IdentityWorks. While Experian’s free Basic plan offers some credit monitoring, the paid plans provide more comprehensive coverage, including dark web monitoring and identity restoration assistance.
- Basic Plan: Free
- Premium Plan: $24.99/month
- Family Plan: $34.99/month
The Premium and Family plans offer three-bureau credit monitoring, which is essential for catching signs of identity theft early. However, the service lacks some of the digital security tools offered by competitors.
4. LifeLock
LifeLock is perhaps the most well-known identity theft protection service, thanks to its partnership with Norton 360. LifeLock offers a range of plans, from basic identity monitoring to advanced protection with added cybersecurity tools. However, the service is known for its introductory pricing, which increases significantly after the first year.
- Standard Plan: $11.99/month (first year), $124.99/year after
- Advantage Plan: $22.99/month (first year), $239.99/year after
- Ultimate Plus Plan: $34.99/month (first year), $339.99/year after
LifeLock’s Ultimate Plus Plan offers the most comprehensive protection but comes at a higher price, especially after the introductory period.
5. IdentityForce
Owned by TransUnion, IdentityForce offers both identity theft protection and credit monitoring services. The company’s unique features include credit score tracking and simulation, making it a good choice for those looking to improve their credit while also protecting their identity.
- UltraSecure Plan: $19.90/month (individuals), $24.90/month (families)
- UltraSecure + Credit Plan: $34.90/month (individuals), $39/month (families)
IdentityForce’s individual plans offer better value than the family plans, especially if you’re also interested in credit score tracking.
Who Should Pay for Identity Theft Protection?
Identity theft can happen to anyone, but certain individuals are at higher risk and may benefit more from paying for identity theft protection. If any of the following apply to you, it might be worth considering:
- Previous Victim of Identity Theft: If you’ve been targeted before, your risk of being targeted again is higher. Identity theft protection can help prevent further incidents.
- Data Breach Victim: If your personal information has been compromised in a data breach, identity theft protection can monitor for misuse and help you respond quickly.
- Frequent Credit Use: If you regularly apply for credit or loans, identity theft protection can monitor your credit reports and alert you to suspicious activity.
- Limited Time for Monitoring: If you don’t have the time or knowledge to regularly monitor your financial accounts and credit reports, identity theft protection services can take on this task for you.
- Children or Elderly Dependents: Children and the elderly are particularly vulnerable to identity theft. Many services offer family plans that include protection for these groups.
- High Net Worth: If you have significant assets, you may be a more attractive target for identity thieves. Comprehensive protection can help safeguard your wealth.
How To Choose the Best Identity Theft Protection Service
Choosing the right identity theft protection service depends on your personal needs and budget. Here are some tips to help you make an informed decision:
- Evaluate Your Risk Level: Consider your personal and financial situation. Are you at high risk of identity theft? Do you have assets to protect? Your risk level will determine the level of protection you need.
- Compare Features: Not all services offer the same features. Make sure the service you choose includes the protection you need, whether that’s credit monitoring, dark web surveillance, or identity recovery assistance.
- Check for Insurance Coverage: Look for services that offer identity theft insurance to cover the costs associated with recovery, such as legal fees and lost wages.
- Consider Family Plans: If you have dependents, a family plan that covers multiple individuals may offer better value.
- Read Reviews: Research customer reviews and ratings to see how well the service performs in real-life situations. Look for feedback on customer support and the effectiveness of the service in resolving identity theft cases.
- Watch for Pricing Changes: Be aware of introductory pricing that may increase after the first year. Make sure the service remains affordable in the long term.
How To Protect Yourself Against Identity Theft
Even if you decide to pay for identity theft protection, there are steps you can take to reduce your risk of becoming a victim. Here are some practical tips:
- Secure Your Online Accounts: Use strong, unique passwords for each of your online accounts and enable multi-factor authentication (MFA) wherever possible. This makes it harder for hackers to gain access to your accounts.
- Freeze Your Credit: A credit freeze with the three major credit bureaus (Experian, Equifax, and TransUnion) can prevent new lines of credit from being opened in your name without your permission. This is one of the most effective ways to protect yourself from identity theft.
- Monitor Your Financial Statements: Regularly review your bank and credit card statements for unauthorized transactions. Report any suspicious activity to your financial institution immediately.
- Shred Sensitive Documents: Shred any documents that contain personal information before disposing of them. Identity thieves can rummage through your trash to find information that can be used to steal your identity.
- Be Wary of Phishing Scams: Be cautious when clicking on links or downloading attachments in emails, even if they appear to be from a legitimate source. Phishing scams can trick you into revealing your personal information.
- Use a VPN: When accessing the internet on public Wi-Fi networks, use a Virtual Private Network (VPN) to encrypt your data and protect it from hackers.
- Limit the Sharing of Personal Information: Be mindful of the personal information you share online, especially on social media. The more information you share, the easier it is for identity thieves to piece together your identity.
Free Alternatives to Paid Identity Theft Protection
If you’re not ready to pay for identity theft protection, there are several free alternatives that can still provide a degree of protection:
- Credit Freezes: As mentioned earlier, you can freeze your credit for free with the three major credit bureaus. This is a powerful tool in preventing identity theft.
- Credit Monitoring: Some credit card companies and financial institutions offer free credit monitoring services to their customers. While these services may not be as comprehensive as paid options, they can still provide valuable alerts.
- Fraud Alerts: You can place a fraud alert on your credit report for free, which will notify lenders to take extra steps to verify your identity before issuing credit in your name.
- Bank and Credit Card Alerts: Most banks and credit card companies offer free alerts for suspicious transactions. These alerts can help you detect unauthorized activity quickly.
- Annual Credit Reports: You’re entitled to one free credit report from each of the three major credit bureaus every year. Reviewing these reports regularly can help you spot any inaccuracies or signs of identity theft.
Conclusion
Identity theft protection services offer valuable tools and support for those at risk of identity theft. Whether you need to pay for these services depends on your individual circumstances and risk level.
For some, the peace of mind and convenience provided by paid services are worth the investment. For others, free alternatives and proactive self-monitoring may be sufficient. By carefully evaluating your needs and comparing different services, you can make an informed decision that best protects your personal information and financial security.