Should You Pay For Identity Theft Protection?

Identity Theft Protection - 
With the number of identity theft victims in the millions every year, it is obvious that some steps need to be taken to ensure protection against identity theft. The real question is can you provide adequate protection against identity theft, or should you pay a service to do it for you? Several companies offer services that track your credit report, police record, and/or medical records and will alert you if any suspicious activity shows up. Some services will even go on to assist you in the process of clearing your credit through forms and counseling. Of course you have to hand over some very sensitive information to these companies and you have to pay them to keep track of your credit. Statistics are also showing that the cases of identity theft are changing and they may not be much these companies can do to protect you.

Different Types Of Identity Theft Protection

While almost all credit protection agencies track your credit report and alert you if something comes up strange, all services do this differently and in different depths. A basic plan will simply alert you whenever a new account is opened or a new inquiry shows up on your report. These plans can even be obtained free from some lenders if you have an account with them. More detailed identity theft protection is available at a cost and often includes counseling services, monthly reports, and coverage of out-of-pocket fees should you fall victim to identity theft. Independent companies have entered the market offering identity theft protection plans that cover just about everything and charge higher fees than the basic plans you’ll get from your banks and credit card companies. Identity theft insurance doesn’t provide protection against identity theft from occurring but will cover any consumer costs incurred through identity theft.

Identity Theft Statistics

Companies offering identity theft protection keep claiming that identity theft as the fastest growing crime worldwide. While it is true that more than 8 million people fell victim to identity theft last year, this was a decrease of close to a million victims only two years earlier. The rise in reports that occurred originally could be partly due to increased awareness and identity theft protection measures. Also consider that the majority of identity theft reports are from people who know their thief, a relative or “friend” who has stolen their identity. The average cost out of pocket for victims of identity theft is only a little over $500, with many paying nothing since most companies no longer hold you liable for any charges made through identity theft. Knowing all this, you are in a better position to determine whether you should pay for identity theft protection or just continue being careful and hope for the best.