Your social security number is connected to a lot more personal information than you might think: bank accounts, wages, credit score, property, and even medical records.
Identity theft is a serious crime that, if left unnoticed, can ruin your reputation and finances.
Is investing in identity theft protection worth it?
Before we explore the services offered by identity theft protection companies, it’s important to first understand what identity theft is in its entirety.
WHAT IS IDENTITY THEFT?
Identity theft is when someone obtains another individual’s personal or private information without their consent, typically for fraudulent purposes.
This could be the individual’s name, birthdate, address, credit card information, passport, bank account numbers, or Social Security number.
Once a thief obtains a person’s Social Security Number, they can easily access all kinds of other personal information.
How does it happen? Technological advancements have made many improvements to our day-to-day lives, but society now relies heavily on computers.
This, unfortunately, gives hackers greater leeway to obtain your information.
Computers or cell phones that are left unsecured or have weak passwords are susceptible to being hacked.
Hackers can send malware or phishing schemes through emails, tricking users into downloading viruses or forwarding their personal information.
In addition to hacking, identity thieves may also try to steal personal information in public places simply by watching someone closely while at an ATM, in the purchase line at a grocery store, or even while filling out documents in a medical office.
Many people do not realize they’re being watched, and by the time they’ve discovered their personal information has been abused and try to report it, they may be unable to explain where or how it happened.
It could’ve been anywhere.
While the terms identity theft and identity fraud are used interchangeably, there’s actually a difference between the two.
Identity theft is the act of stealing the information; identity fraud is the use of that stolen information or false identification.
Identity thieves sometimes use personal information from deceased individuals and might even create fake identities for people who have never existed.
TYPES OF IDENTITY THEFT
The intent of identity theft goes beyond simply stealing your money.
Many identity thieves also use your identity as their own to commit—and get away with—serious crimes.
Criminal Identity Theft
This is when your personal information is used during an arrest.
Since it’s uncommon to check your criminal record if you’ve never been arrested before, people may discover they have an inexplicable warrant out for their arrest after being pulled over for a speeding ticket.
Criminal identity theft can be difficult to report or prove since law enforcement is used to people claiming to be innocent.
Child Identity Theft
Unfortunately, identity thieves sometimes also target children.
Children aren’t typically checking their own credit scores and, usually, their parents aren’t either.
Identity thieves take advantage of this and will use a child’s social security number to apply for credit cards, loans or for other fraudulent purposes.
Sadly, these cases of identity theft are usually committed by a family member or guardian of the child who already has access to the child’s personal information.
Financial Identity Theft
Even if identity thieves don’t target your personal bank accounts, your money is still affected if they target major corporations whose services you have used or where you have shopped.
If you have a Facebook account, you’ve probably heard of or received random messages from users, later discovering that their account had been hacked.
Aside from Facebook, other major businesses have experienced data breaches, where millions of customers’ sensitive information, such as credit card numbers, billing information, email addresses, and passwords were compromised.
Social Security Identity Theft
Social Security numbers are the most sought after and valuable piece of personal information.
Aside from accessing your bank accounts, identity thieves can also use your Social Security number when filing their taxes.
If the thief is successful, the IRS may hold you responsible for filing twice and bill you for unpaid taxes, which can be a massive headache come tax season.
PURPOSE OF IDENTITY THEFT PROTECTION COMPANIES
Knowing your identity can be stolen is a chilling thought, and it’s even more terrifying for those who have already experienced it.
It may feel like you are taking a gamble every time you make a purchase online or fill out a personal information form for a company.
By now, you might be asking yourself what’s the best way to protect yourself against identity theft.
In a nutshell, identity theft protection companies offer to monitor your credit reports and personal information to alert you of any suspicious activity in exchange for a fee.
Sometimes identity theft protection companies offer services as a package deal, such as money or credit recovery, as well as additional resources and services that are unfamiliar to the average consumer.
Aside from monitoring your credit and bank accounts, additional services may include surveillance of public records, criminal records, government databases, email logins, phone numbers or even internet sites that are known to sell personal information.
Most identity theft protection companies have a team of specialists available around the clock to assist you in the event that your identity is stolen.
Before deciding if identity theft protection is right for you, it’s essential to weigh the pros and cons of investing in these services.
BENEFITS OF IDENTITY THEFT PROTECTION SERVICES
We can do our best in taking preventative measures, such as by monitoring bank statements, installing virus protection software on computers, and changing passwords regularly.
However, sometimes protecting our identities on our own just isn’t enough.
1) Full-time Monitoring
Identity theft protection and prevention is an ongoing task that can be time-consuming and requires a lot of focus.
Whether you’re working full-time, a parent, a student, or all of the above, your time is precious.
Adding the monitoring of all your personal and private information to your schedule can be a huge hassle.
Just as you would hire a personal assistant, childcare worker, or business partner to increase productivity, getting identity protection services grants you an extra set of eyes and hands, as well as peace of mind.
Professional identity theft protectors will assist with preventative measures as well as help you monitor your information from a broader perspective that includes surveilling the web for court records, postal address changes, and credit bureau reports.
2) Instant Notification of Suspicious Activity
Many victims of identity theft don’t realize they’ve been targeted until money has already been stolen from their accounts or after they’ve discovered their credit score has significantly lowered.
Many identity theft protection companies notify customers immediately of any suspicious activity, such as new accounts or credit cards opened in their name.
3) Recovery and Resources
Imagine scanning through your credit card statements and discovering several purchases that you didn’t make.
Then it becomes clear to you that someone else must have accessed your credit card information to make unauthorized purchases.
Identity theft protection companies step in to handle the recovery process for you.
This can help eliminate the time and stress of making multiple phone calls and contacting various agencies.
Additionally, identity theft protection companies typically provide customers with the resources to fix the issue as efficiently and quickly as possible.
DRAWBACKS OF IDENTITY THEFT PROTECTION SERVICES
While identity theft protection companies offer several helpful services, some may cost more than what you’re willing to pay them.
Also, depending on your situation, companies might offer services that you don’t really need or find valuable.
1) Identity Theft Isn’t 100% Guaranteed
Not everyone will be a victim of identity theft in their lifetime.
Still, preventative measures can be wise.
We live in an age where our private information can be obtained in multiple ways, such as by losing your wallet or purse, shopping online, being hacked, or having it stolen directly from your mailbox.
Even if identity thieves aren’t necessarily targeting individuals, there’s still the possibility of someone hacking the databases of large companies, such as banks, retailers, credit card companies, and medical facilities, that store your personal information.
Such data breaches can compromise sensitive information and cause further complications down the road.
2) Some Identity Theft Protection Companies Offer Services You Can Do Yourself
Service needs vary from case to case.
Some individuals may find it easier to monitor their own credit and bank accounts, rather than hire someone else to do it.
Also, people who are actively conscious about the safety of their personal information may already be taking the preventative measures which identity theft protection companies recommend.
In addition, there are resources available that can help people reclaim their identity if it is stolen.
Some people may not feel comfortable allowing protection companies to see and monitor their sensitive information and would rather do it themselves.
3) Identity Theft Doesn’t Affect Very Many People
In 2013, 13.1 million people reported being victims of identity theft.
That may seem like a gigantic number, but when compared to the population of the entire country, it only equates to about 4% of the population that was affected by this crime.
Also, thanks to cybersecurity advancements, the number of identity theft reports actually decreased from 2013 to 2014 by almost half a million.
Advanced monitoring and protection systems have allowed us to catch and correct fraud in a more timely and successful manner.
TIPS TO PROTECT YOUR IDENTITY & PREVENT THEFT
Whether you decide to invest in identity theft protection services or not, it’s still wise to practice identity theft protection strategies at all times.
You may not be able to prevent identity theft from happening, but quick action can limit the severity of the damage.
In order to protect yourself, you can employ the following strategies:
1) Establish a Monitoring Routine
Make a habit of monitoring your credit and bank accounts.
Under federal law, you are entitled to one free copy of your credit report per year to review its accuracy and make sure all information is complete and up-to-date.
You can also create an online account with your bank institution to view and monitor transactions as well as request email and text message alerts of login activity.
2) Install Security on Your Devices
You’re probably aware of the necessity for anti-virus, anti-spyware, and firewall software for your computer, but don’t forget your mobile devices.
Smartphones, tablets, and iPads are all at risk of being hacked.
Make sure to install security applications on every personal device you own and that your devices are password or encryption protected.
3) Guard Your Personal Belongings
Never carry around your social security card or written passwords and PINs.
Do not to leave your wallet, purse, or bags unattended.
Make sure sensitive information such as medical records, tax files, and bank account statements are in a secure place at home or shredded after use in a public place, such as in an office or library.
4) Keep Information Limited on Social Media
While social media platforms, like Facebook and LinkedIn, seem like a harmless place to share life events or career accomplishments, it can also put you at risk.
Many users don’t realize how much personal information is stored on their profiles, such as full names, birthdays, phone numbers, photos, anniversary dates, location, family members or even the names of their pets.
This type of personal information is often used by hackers and identity thieves to decipher passwords and gain access to accounts.
Make sure you limit the amount of personal information you share on social media and change your passwords periodically.
Summary
Oftentimes, identity protection companies can catch these incidents much faster than a single individual, which is useful when trying to minimize the harm done to your identity and credit.
Fortunately, there has been an overall decrease in identity theft cases and only a small percentage of the population is affected by it each year.
This does not mean, however, that the issue isn’t of concern.
Identity theft cases may have fallen over the years, but according to the Insurance Information Institute, data breaches are still on the rise.
Even Equifax—the largest U.S. credit bureau and reporting agency–suffered from a breach that affected over 140 million people in 2017.
Some of the sensitive information compromised in the breach included driver’s licenses, Social Security numbers, credit card information, birth dates, phone numbers, and email addresses.
Identity theft is a serious crime that isn’t 100% preventable, but minimizing the damage early on can make all the difference.
Thinking about investing in identity theft protection?
We’ve researched and created an informative to help you explore your options.