Seven Steps of Identity Protection

Find out how identity protection works. We'll describe the seven essential steps of identity theft protection on this page.

1. 1) Credit bureaus are instructed to set fraud alerts on your accounts. If you suspect that you are or will soon become a victim of identity theft, the first thing your identity protection company will do is request fraud alerts on your accounts. With a fraud alert, if anyone tries to make any changes to your account, the creditor must call you to verify that the transaction is legitimate.
2. 2) The alerts are reset every three months unless you request otherwise. The identity theft protection company will continue renewing the fraud alerts until you no longer suspect identity theft and request that they lift the alerts.
3. 3) The junk mail finally stops. Junk mail is much more than a nuisance; it's also one of the most commonly targeted sources of personal information by identity thieves. For this reason, your identity protection company will request that your name be removed from all credit card and insurance pre-approval offer lists. Within a few weeks, you should notice the amount of junk mail you receive diminish.
4. 4) The identity protection service orders all three of your free credit reports for you. One of the best ways you can protect your identity is to monitor your credit reports vigilantly. To help you do so, your identity theft protection service will automatically order your free annual credit report from each of the three major credit bureaus. The reports will be sent to you in the mail every year.
5. 5) No more worries about a lost or stolen wallet or purse. Most identity protection companies offer some sort of service where clients can call and report a lost or stolen wallet or purse. One of the company's representatives will then contact all of your creditors, banks, and document-issuing agencies to cancel the involved accounts and request new cards or documents. For example, the representative can help you replace your credit and debit cards, driver's license, insurance cards, checks, social security card, and more. Many identity theft protection companies offer this wallet protection service for no additional cost.
6. 6) Potential threats to your identity are stopped. If your identity protection package includes identity monitoring, then your service will regularly check national databases to determine if any changes of address have occurred in your name or if your personal identifying information is being sold or traded on criminal websites.
7. 7) The back-up plan. In the event that your identity is compromised while you are enrolled in an identity protection program, your service should offer you some sort of insurance plan to reimburse you for losses. Some companies offer a guarantee of up to $1 million.