Having your identity stolen is a scary thought. Criminals use or sell personal information for various reasons, including opening fraudulent accounts, accessing existing lines of credit and changing account information. Having identity-theft protection does not guarantee the safety of an identity, but knowing about available services helps you make an informed choice.
Features
Identity-theft protection plans come with various features, depending on the provider and price. Consider features that apply to your circumstances, like more detailed monitoring for compromised information. Credit monitoring allows the service provider to monitor credit reports, public records and the Internet for signs of misuse. Installed software protects against hacking and malicious activity on a home computer. Address tracking alerts the company if someone changes your address. Other benefits include insurance against expenses you pay related to identity theft, such as attorney fees, and online or phone guidance.
Effects
You receive notice as soon as a change appears on your credit report -- such as the opening of a new account -- giving you the opportunity to stop a thief in his tracks. Software deters identity theft online by protecting your computer from attacks targeted at personal information, and exposes computer vulnerabilities. An address change without your knowledge is alarming, as mail and packages go to the thief at the "new" address. The provider notifies you of an address change and helps you resolve the problem.
Cost
Plan payments vary by type, provider and protection level. More benefits and features typically raises the cost of the plan. Credit bureaus, financial institutions and specialized companies offer identity-theft protection plans on a monthly-charge basis. The average monthly fee for a typical identity-theft protection plan is $12.50 as of 2011, according to reporter Elizabeth Dunbar of Minnesota Public Radio News.
Plan Selection
Consider needs and finances after comparing prices, features and choices. Basic plans come with credit monitoring, but select a plan with detailed monitoring after misplacing personal information, such as losing your identification, birth certificate or Social Security card. Chose a software plan if you expose a lot of personal information online or someone hacked your computer. Get an address-change tracker if you have problems with mail or package deliveries.
Adding an insurance option to a plan is beneficial if you do not have the financial resources to pay out-of-pocket costs related to an identity theft but can afford the extra amount each month for coverage.
Considerations
You can put a fraud alert or security freeze on credit reports at all three of the major bureaus -- Equifax, Experian and Transunion -- by visiting the official websites of each. A fraud alert tells a credit issuer she must speak to you before opening a new account. A freeze does not allow creditors to view reports until the consumer lifts the freeze by providing personal information and an assigned pin number. A small fee may apply for lifts of a security freeze by a person who was not a victim of identify theft, depending on the state.
Read all identify theft protection plan terms, costs and benefits thoroughly before using a service. All guarantees and insurance offers should have clear terms and outline coverage so you know what to expect if you become a victim.
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