Frequently Asked Questions about Identity Protection

Here are the answers to the most commonly asked questions about identity protection.

What is professional identity protection?

Identity protection is also sometimes called identity theft insurance or credit monitoring, though each service is slightly different. Identity protection offers consumers a number of safeguards against identity theft. The company works to protect the good name of their clients by reducing identity theft threats, such as junk mail and address changes. The service will also usually help clients monitor their credit reports for signs of identity theft or other fraud. To back up their services, the ID protection company may also offer an insurance policy. The insurance policy will compensate the client for any losses experienced as a result of an incidence of identity theft.

How much does identity protection cost?

Professional identity protection is usually available for a very reasonable monthly fee. The average identity theft protection company charges an average of $10 per month. Considering that many of these companies offer identity theft insurance policies of up to $1 million, the small monthly fee is well worth the protection.

Why do I need to protect my identity?

Your good name and the information contained on your credit report are what lenders use to determine whether to issue you credit. Your credit information also influences the rates you receive on your loans and credit cards. If an identity thief ravages your credit because you failed to take the proper precautions, your credit could be irreparably harmed. Additionally, just one instance of identity theft can cost you a great deal of money. Identity protection safeguards your good name and prevents theft-related financial losses.

Can't I take identity protection measures on my own?

Yes, anyone can take steps to protect their identity from thieves. Any consumer can set fraud alerts on accounts, order free credit reports, and do many of the other things an identity protection service would do. However, not all consumers have the time, expertise, or the inclination to do all of these things themselves. To be as thorough and as diligent as a identity theft protection service, you would have to devote a large chunk of your time to protecting your identity. You also would not enjoy the guarantees that come with profession ID protection, such as an insurance policy in the event that something goes wrong.

How common is identity theft?

Identity theft statistics make a strong case for identity protection services. Every year, about 9 million Americans have their identities stolen. The number of victims has also steadily risen for the last few years. In over half of identity theft cases, the victims have no idea who the thieves were or how the criminals obtained their personal information. What's worse, in 10% of these cases, identity thieves take $6,000 or more of goods and services.