Products for Identity Theft
With the growing rate of identity theft cases, more products are emerging to help protect consumers or even help them in the event they become a victim of identity theft. These products can include sweep services, credit freezes, monitoring services and more. It should be noted that in order to protect yourself from identity theft, you do not have to use these products. They are simply a convenience, but they do cost money. In the event a consumer chooses not to invest in them, it is recommended that they still perform credit monitoring and other preventative measures on their own.
Credit Monitoring Services
A credit monitoring service does not prevent identity theft, but it can monitor a consumer’s credit report to ensure that no fraudulent activity shows up. In the event new accounts, credit inquiries or other changes to a consumer’s credit report show, the credit monitoring service will notify the consumer immediately. It should be important to note that credit monitoring services only monitor the “credit” aspect of a consumer’s identity. They do not monitor criminal or governmental services that may have other evidence of potential identity theft. They also cannot monitor any type of takeover of current accounts, but will note if those accounts go into collections.
Identity Monitoring Services
An identity monitoring service is much different from that of credit monitoring services. These types of services may actually be able to do real-time notification of fraudulent activity, whereas credit monitoring can only notify a consumer after it has occurred. Every identity monitoring service is different, but the majority offer similar services such as monitoring databases for address changes in your name, identifying and notifying you of unusual activity in your name, looking through internet databases for fraudulent use of your personal information, and screening even your bank and credit card accounts for fraudulent charges or changes.
Credit Freeze
A credit freeze is one of the strongest identity theft protections available to consumers. This places an entire hold on a consumer’s credit report. That means potential creditors, identity thieves and even the consumer cannot access their credit. A credit freeze will cost money to the consumer and not all states participate in a credit freeze program. Therefore it is essential that consumers look up requirements within their state in order to utilize a credit freeze on their accounts.
Victim Resolution or Restitution Services
There are services that will assist a consumer in the event they become victims of identity theft. These types of services are not free and fees for them will vary depending on what services they offer. These services are meant to take over the recovery process and clear the victim’s name of any fraudulent charges as well as clean up their credit report from any damage. As a consumer, before signing up for any restitution or resolution services, it is important to scrutinize them. Often there are fraudulent companies looking to take advantage of consumers that are victims of identity theft. Ensure you know what services you are getting and for how much as well as if you are dealing with a reputable company or not.
Data Sweep Services
A data sweep service is a professional service that “sweeps” the internet for any fraudulent use or posting of a consumer’s data. They can be used once per year or several times throughout the year for a stipulated fee. Before signing up with a data sweep service, a consumer needs to find out just what portions of the internet they monitor and what type of information they remove. Just as with victim restitution and resolution services, a consumer should always practice “buyers beware” mentality.
Secure Payment Agents or SPAs
Secure payment agents are services that put the consumer in control when shopping or paying bills online. When a consumer uses an SPA, it will replace their personal information and make them anonymous. After a transaction has been completed on the internet, it is then erased and cannot be tracked by anyone.
Identity Theft Insurance
There has been a lot of debate and controversy surrounding identity theft insurance. This is primarily due to the fact that consumers do not quite understand what it is. When people hear “insurance” they assume it prevents them or protects them in some way from falling victim to identity theft. This is not how it works. Identity theft insurance helps a victim recover from identity theft, not prevent it. It is just like auto insurance. They do not prevent you from getting into an accident, but they help cover you after it occurs. Identity theft insurance will vary in premiums, but they will cover the cost of recovery from identity theft. Some will cover lost wages, but not all policies do; therefore a consumer should investigate what type of policy they are signing up for first.