Is Identity Theft Protection Worth It?

Security & Fraud

According to Javelin’s 2024 Identity Fraud Study, traditional identity fraud and identity fraud scams amounted to roughly $43 billion in losses in 2023.

The threat of identity theft is alarming, and with rising fraud cases, you may be considering identity theft protection.

But is it worth it? You can do almost everything an identity theft protection service offers. But for some, it’s worth the cost of knowing someone else is monitoring your personal information.

If you’re considering purchasing identity theft protection, here are some key factors to consider.

How Identity Theft Protection Works

Identity theft can occur in several ways. The most common causes include data breaches, spoofing and phishing schemes, hacked accounts, and compromised devices.

Identity theft protection services aim to monitor your personal information for a monthly or yearly fee.

Generally, identity theft protection companies offer three primary services, which include:

  • Monitoring: They will monitor your credit reports for suspicious activity, such as accounts being opened in your name.
  • Alerts: They will notify you of instances where your personal information has been used. In many cases, people don’t realize they’ve been victims of identity theft until after their credit is damaged, their bank accounts are emptied, or they have new debt in their name.
  • Recovery: This service can help recover lost money and undo the damage done to your credit.   

Remember that these services are designed to alert you to suspicious activity after it has happened. They won’t necessarily prevent it.

Choosing the Best Identity Theft Protection Service

If you choose to purchase identity theft protection, you should consider the following when selecting a company and a plan:

  • What information will they monitor? Some will monitor your credit at all three credit reporting agencies (Experian, TransUnion, Equifax). Others will monitor your social media accounts. Some companies will even scan the dark web. Before deciding, you should identify what personal information you want them to monitor.
  • What tools are available? Look closely at the types of tools they offer. For instance, do they offer real-time notifications? Before choosing a plan, make sure it provides the essential tools to ensure optimal protection.
  • Does it offer a recovery service? If your personal information is stolen, do you have time and resources to recover what’s been lost? If not, you should consider a company or plan offering recovery services to help you recover what you lost.
  • Is identity theft insurance available? Many companies offer insurance to help recover lost funds, pay legal fees, and more. However, it’s essential to understand the terms and conditions of the policy.
  • What type of coverage do their plans offer? You can typically choose between a family and individual plan, each providing different coverage options. Select a plan that’s best for you and your needs.
  • Do they offer a mobile app? Having access to a mobile app can be helpful and provide faster alerts. Research their mobile app beforehand to ensure it’s user-friendly and easy to navigate.
  • What’s the cost? Companies price identity theft protection plans based on the coverage they provide. Before choosing a plan, determine a monthly or yearly amount that fits your budget and the coverage you need.  
  • What’s their customer service like? If you become a victim of identity theft, you’ll want to be able to reach someone quickly. It is critical to determine whether they offer 24/7 customer service or a designated fraud specialist.

Some of the most trusted and popular identity theft protection companies are Aura, LifeLock, and IdentityForce. However, several options are available. It would be best to do your research to ensure you choose a company and plan that will provide the coverage you need.

The Best Alternative to Identity Theft Protection Services

Don’t want to pay for identity theft protection? There are steps you can take to protect your identity yourself.

First, you should get a free credit report and monitor it for changes.

Second, if you become a victim of identity theft, you should report it to the Federal Trade Commission immediately. They also offer a recovery plan you can follow.

Lastly, you can freeze your credit reports for free at all three credit reporting agencies mentioned above. You’d be paying for this service with an identity theft protection company.

Who Should Purchase Identity Theft Protection?

While identity theft protection is not for everyone, it provides a valuable service to millions. If you’ve already been a victim of identity theft, don’t want to freeze your credit reports, or cannot monitor your personal information like you should, identity theft protection might be worth considering.

No matter what you decide, you should know the steps to take if your identity is stolen. Visit our Security and Fraud Center to learn more about protecting yourself from scams and fraud. And if you ever suspect fraudulent activity on your Connexus account, you should contact us immediately.