Should I Pay For Identity Theft Protection?

Identity theft is big news these days, and most people are aware that they could be at risk. Companies that promote identity theft protection spend millions of dollars each year to convince customers that they need coverage, but not all people do. If you’re concerned about identity theft, you should evaluate both your risk of exposure and the consequences to you and your family should your identity be compromised.

First we must dispel a myth. Identity theft protection services will not prevent identity theft. Since personal information can be stored in many places you don’t have control over, such as creditor databases, retailers’ websites, and medical records, there really is no 100% foolproof way to prevent identity theft. What these companies can do is alert you with messages when there’s activity on your credit report, and help you clean up the mess in the event your identity is stolen.

Benefits of Identity Theft Protection Services

  • One of the most practical benefits of identity theft protection is their credit monitoring service. When you sign up for protection, the company will continually monitor your credit report for things like address changes, credit inquiries, new credit accounts, and significant changes in existing balances on your credit accounts. Any of these events could trigger a message to you, allowing you to respond quickly and effectively if your identity should be compromised.
  • The other primary benefit of identity theft protection is fraud insurance. Most companies will cover legal services, out-of-pocket costs, sometimes even private investigators to help with your claim. The amount of insurance will depend on the company you choose, and the level of protection you buy. For some people, the fraud insurance alone is worth the cost of identity theft protection.

Are You At Risk?

  • Most people with low credit scores do not need to worry much about credit card fraud. Since it would be hard for anyone to open a new account in your name, you’re not at a high risk for that kind of crime. In addition, most credit card companies offer some level of fraud protection for purchases you don’t authorize, so you probably won’t stand to gain much from identity theft protection.
  • People at the greatest risk are those who have good credit ratings and large assets. With your good credit, an identity thief could open a barrage of new accounts before you even find out. What’s worse, you could be held accountable for the debts they took out in your name until the matter is resolved in court. That could mean large payments to lawyers and investigators to sort out the mess, and you could end up losing big time without the benefit of fraud insurance.

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Cleaning Up the Identity Theft Mess

Hindsight is always 20/20. If only you knew then what you know now, you likely would have invested in some identity theft protection. At the very least, you might been more careful about allowing access to your personal information. Identity theft can really screw with your life. Some folks have even found that the social implications are worse than the financial ones. Your creditors usually won’t hold you responsible for more than about $50 in damages when you’re an identity theft victim, whereas if a thief uses your identity to commit a crime, that’s likely to haunt you for a very long time. Some people have even found themselves locked up in jail because an identity thief used their name to commit a different crime.

If you’re the victim of identity theft, here are a few things you can do in order to start to clean up the mess:

  • Make a police report. File complaints also with your state’s attorney general and the FTC. Gather all of your reports and keep them together in one place.
  • Close any accounts that have been compromised. Close the accounts by a phone call immediately, but also send the companies a certified letter. Notify the company in writing that you dispute charges made fraudulently. Keep meticulous records of this correspondence and conversations.
  • Contact the credit reporting agencies. You need to ask them to put a fraud alert freeze on your credit reports, which will last for seven years. You also need to start the process of having any false information removed from your credit reports, as well.
  • Think about identity theft protection. There are a number of services you can use that will help you handle things if it every happens again. In some cases, they may be able to catch fraudulent activity before it gets out of control, saving you plenty of headache in the future.
  • Document everything. The better your records are, the more likely you’ll be able to protect yourself in the future and handle any additional fallout from this point forward.

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What Does Identity Theft Protection Do?

Most people are familiar with the ads for identity theft protection services. Companies announce that they can keep customers safe by preventing identity theft. They also publicize free credit reporting services as well as legal and financial assistance for victims of credit fraud.

Although their claims of being able to prevent identity theft are unfounded, identity theft protection companies do offer detection and recovery services if your identity is stolen. Their credit monitoring services can also help to educate consumers about what kind of information goes on their credit report, and how it might affect their credit rating.

There are basically two kinds of services offered by identity theft protection companies: credit monitoring and fraud insurance.

Credit Monitoring:

  • Most people know that they can get a free copy of their credit report each year. Additionally, any time you are turned down for credit, you are allowed to request a free report. That doesn’t mean you can’t monitor your credit report yourself more frequently, but it may cost you.
  • Credit monitoring services offer frequent copies (up to twice a month) of your credit report for a monthly fee, plus e-mail alerts when certain information on your credit report changes, such as major account balance changes, new addresses, new credit accounts, and credit inquiries. The information reported to consumers helps them better understand how their credit is used, and can alert them almost immediately when suspect data pops up.
  • All three credit bureaus are touting credit monitoring services on their website. Experian is offering a $1.00 credit report along with automatic enrollment. (You can cancel within the first 7 days and owe nothing.) TransUnion is offering a 30-day “risk-free” trial period. Equifax doesn’t offer a free trial period, but their cancellation policy claims, “You can cancel your products at any time… Just call us and we’ll take care of the rest.”

Fraud Insurance

  • When charges are made to your credit card without your permission, your card issuer probably provides some level of fraud insurance coverage. For most credit cards, consumers are only responsible for the first $50 of unauthorized charges. Most debit cards, however, offer no such protection.
  • Identity theft protection often comes with fraud insurance, which covers legal fees, private investigation expenses, and out-of-pocket costs at anywhere from $25K to $1M, depending on your policy. In certain cases, you could be held legally responsible for fraudulent charges until the conclusion of a credit bureau investigation. If you don’t have fraud insurance, you could be facing a choice between bad and worse: pay the charges until the situation is settled, or allow the dispute to ruin your credit.

Although fraud insurance and credit monitoring can be bought separately in most cases, identity theft protection services combine them, and offer concierge services that help identity theft victims through the aftermath. The FTC also offers a guided tour for identity theft victims for free.

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The Best Do-It-Yourself Identity Theft Protection

Identity theft has been hitting the news regularly, and consumers are all too aware that their sensitive personal information can be compromised through no fault of their own. Data leaks from major companies, hacked websites, and customer databases frequently make headlines. Then there are all those ads from identity theft protection companies, selling consumers a package that purports to keep them safe from identity theft.

The truth is, there’s not much those identity theft protection services can do for you that you can’t do for yourself, and at a lower cost. Those companies make money by convincing customers they can prevent identity theft, which isn’t true.

Identity theft happens to all kinds of unsuspecting people. There are devices that connect to credit card swipe panels that secretly collect consumer information, including credit card numbers. These can be attached to an ATM machine or the credit card reader at a local business, for example. It’s almost impossible to know if you might be the next victim of an identity thief, and most attacks can’t be prevented by the consumer themselves.

Being careful about when, how, and to whom you divulge personal details is a good step towards preventing identity theft. However, it’s not 100% reliable, since many other companies hold your sensitive personal data.

If you’re really worried about identity theft, there is one simple step you can take that will almost guarantee you can’t be a victim. Place a security freeze on your credit report at all the credit reporting agencies. It costs little to nothing, depending on whether your identity has already been stolen, and it’s available in all 50 states.

Placing a freeze on your credit will mean that you can’t apply for any new loans or credit cards without lifting the freeze. In some cases, this can be done temporarily to allow for authorized lenders to pull your credit report, and there may be a small fee associated with unfreezing your account.

The upshot is that identity thieves also cannot apply for new credit in your name. Since your credit file is locked, and they don’t have the PIN number to reactivate or temporarily lift the freeze, they won’t have the ability to use your credit profile for their own gain.

The best tool for identity theft protection is now in your hands. Don’t waste your money on overpriced identity theft protection services. If your identity has already been stolen, contact the credit bureaus right away and post a fraud alert on your profile. This will prevent any future credit accounts from being opened without your permission.

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Identity Theft Victim Marked as Sex Offender for Life

Identity theft protection might not seem like a big deal to some folks. After all, most banks and credit card companies only hold you responsible for the first $50 or so when your card has been used fraudulently. The cost of identity theft protection seems to outweigh those small amounts you might be liable for.

However, you need to consider something else. Identity theft can create more than just minor financial difficulties. It can really ruin your entire life.

Take, for example, the case in Port Orchard, Washington. A man by the name of Dan Wheeler had his wallet stolen more than 15 years ago. Over the next few months, the thief used Wheeler’s identity not merely for financial gain, but to commit sex crimes.

The sex offender used Wheeler’s name as an alias, and Wheeler’s life has come undone since then.

In 2005, Wheeler was involved in a minor traffic violation. He made a left turn at an intersection where no left turns were allowed. The officer who pulled Wheeler over approached the car, after running Wheeler’s identity through police computers. The officer asked Wheeler to get out of the car, and informed him that he was under arrest.

When Wheeler asked why he was under arrest, the officer informed him that he was a wanted sex offender.

Wheeler has had difficulty getting a job in any situation that requires a background check. Wheeler even had his foster parent application denied, because he was registered as a sex offender.

The battle to clear his name has been a losing one. Wheeler has spoken with police as well as prosecutors, who have informed him that nothing could be done. It’s the policy of the Washington State Patrol, which is the department in charge of the sex offender database, that when an alias is used it is kept on file forever.

It’s not known if Wheeler has considered suing the State, and there are some experts who believe he may have a case. Of course, the challenge would be paying for an attorney, as he’s had a horrible time finding work, largely due to failed background checks.

Photo via davidsonscott15

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40 More Articles on Identity Theft

Post image for 40 More Articles on Identity Theft

Identity theft has become rampant around the world today. Protecting yourself is very important. If someone steals your identity it can take months or even years to clear up the mess they leave behind. They can rack up serious debt in your name and leave you holding the bag. Being aware of the types of identity theft can help you to know how to better protect you and your family. There are several different types. Look at the articles below to help you understand the types as well as the results of having your identity stolen. Being proactive in keeping your identity protected is one way to help thwart any potential thieves.

  1. Beware You should know the different types of identity theft so that you can properly protect yourself.
  2. 5 Types There are five types of identity theft you should know about.
  3. What is Identity Theft? Learn what identity theft is and how you can prevent it.
  4. Defined Identity theft defined and how you can protect yourself.
  5. Protection Read here on the different types of protection out there to help you prevent identity theft.
  6. Effects One blogger shares what can happen in the aftermath of identity theft.
  7. Breakdown Take a look here to see where the most identity theft happens.
  8. Various Types You can read about the different types of identity theft here.
  9. Millions Statistics show that over eight million people have been affected by identity theft.
  10. 31% Increase There has been a 31% increase in the amount of identity theft recently.
  11. Avoiding Theft One blogger shares how you can avoid being a victim of identity theft.
  12. Prevention Learn how you can prevent identity theft from happening to you.
  13. Using Id Protection You can use identity protection to help keep yourself from becoming a victim.
  14. Tips Learn ways and tips to protect your identity.
  15. When You’re a Victim Here are a few ways to deal with the situation if you find yourself a victim of identity theft.
  16. Victim Labeled Sex Offender When this victim’s wallet was stolen, he had no idea what was about to happen to him.
  17. Compared to Fire Loss When looking at the losses from identity theft, you could compare it to those of fire loss.
  18. Victims Story One victim of identity theft shares their story how what type they were hit with.
  19. How it Can Happen Find out how identity theft can happen. Most people believe it will never happen to them.
  20. Types Use this site to find out about the different types of identity theft out there and how to protect yourself.
  21. What is Identity Theft? Learn what identity theft really is and how to keep your information protected.
  22. Protection Read here to learn the different types of fraud and how to protect yourself from them.
  23. Guide Stop by here to look at a guide to types of theft and also how to keep it from happening to you.
  24. What Should You Do? Look to find out what you should do if you discover you are a victim.
  25. Top 10 Here a blogger has reviewed and rated the top 10 identity theft protection services.
  26. Inside Take a look inside identity theft to see how it works.
  27. Scams Identity theft scams are beginning to show up again more frequently.
  28. Scott’s Story Scott shares his story of being a victim not once, but twice of identity theft.
  29. Hours and Money People have spent precious time and their own money to clean up after thieves who have stolen their identity.
  30. Hotels Learn how the hotels are becoming the new targets for identity theft.
  31. Full Time Job Identity theft has become a full time for residents when becoming a victim. Also learn a few new types that are out there.
  32. Are You Safe? One blogger asks this question and also addresses the different types of theft you might face.
  33. How it Grows Learn about identity theft here. You will find out what it is and how it can grow so rapidly.
  34. The Basics Knowing the basics of identity theft can help you to prevent it from happening to you.
  35. Birthdays Listing your birthday on a popular social media site can make you a victim of theft.
  36. Five Main Types Read here to find the five main types of theft and how to protect you and your family.
  37. Getting the Information Take a look at what could happen if a thief gets hold of your information.
  38. Check Forgery Look at how easy it is to get your information and take your writing off one of your checks.
  39. Being Used You need to be aware of how your information is being used through many computer systems daily.
  40. Insurance Learn what identity theft is and how you could have insurance to protect you.

Image Credits: CarbonNYC

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Coroner’s Kid Turns Cold

Even in Green River, Wyoming, identify theft protection is probably a good idea. The funny thing is that most folks really don’t have much of a clue about what they can do to protect their identities, and how identity theft usually takes place.

Sure, there are dumpster divers. Yes, there are brilliant computer hackers who hide outside your house with their laptops, breaking into every computer in every house in the neighborhood, collecting social security numbers, passwords and other important information.

Unfortunately, a good number of identity theft cases don’t involve laptops or criminals spying on your home. They involve family members. They involve someone who you should be able to trust, who has access to all of your personally identifying information. It could be a spouse, a child, or even a great uncle who decides to go snooping through your underwear drawer while you’re putting the finishing touches on the Thanksgiving turkey and finds a credit card.

That’s exactly what happened in Green River. As it turns out, the son of the Sweetwater County coroner was recently sentenced for between two and seven years in prison for charges related to identity theft.

The man, 27 year-old Matthew Harl Majhanovich pleaded guilty to the charges of credit card fraud and check fraud. Majhanovich admitted that he used his father’s credit card. Unfortunately, the card was actually issued by Sweetwater County, to Dale Majhanovich for use in his occupation as the coroner of that county.

On top of the fraudulent credit card use, Matthew Majhanovich also admitted that he wrote as much as $1,000 in checks on an account that he knew to be closed.

The judge also ordered Majhanovich to pay more than $11,000 in restitution, on top of court costs. He has already served 28 days in jail, and that jail time will be applied to his prison term.

Photo via jurvetson

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Credit Card and Identity Theft Ring Spans Seven States

Identity theft protection is big business these days, largely because identity theft itself has become such big business. Everywhere you look, there’s someone who’s stealing someone else’s identity. It might be an “illegal alien” or “undocumented worker” (pick your own term, we’re not playing politics here) using your social security number to get a job. It might be some creeper who spends his evenings diving in your dumpster who meticulously reassembles the credit card bill that you shredded last month. It might even be your own offspring who, in an effort to buy some rockin’ new clothes or a deck of Lucky’s, uses your credit card.

Or, it might be that you’re the victim of an organized group of people that are committing identity theft-related crimes in a multi-state or even a national level.

Take, for example, the six people who were recently arrested in Colorado. It turns out that the people, all from the area of Oakland, California, were using fake credit cards to get both cash and merchandise in a seven state area.

The grand jury in Colorado indicted the six. The jury alleges that the suspect tricked the employees of banks and stores into passing the authentication process for the fake cards, allowing the individuals to make both cash advances and purchases with them.

Among other things, the group got crafty with the scam. They bought a toll-free number and had it printed on the back side of the credit cards. When a bank or a business couldn’t get the card to read, they would call the number on the back of the card.

When that happened, one of the scam artists would answer. That person would then walk the individual on the other end of the line through the process of doing a manual override on the credit card.

Before the scheme was uncovered, it is suspected that the group ran up more than $65,000 in fraudulent credit card charges.

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Couple Steals Credit Card, Heads to Walmart

Now, everyone knows that the big discount retailers like Walmart are a great place to go if you want to buy things at a decent price. Sure, you might not be able to buy the best quality merchandise, but you can buy merchandise.

Most folks also realize that it’s much easier to spend someone else’s money than it is to spend their own. As anyone involved in procurement for a business can tell you, it’s less about what kinds of deals are out there than the particular partnerships and purchasing agreements that the company might have.

When it comes to criminals, however, you’d think that they might just spend other folks’ money sort of haphazardly. Especially when they are involved in something so nefarious and intricate as identity theft. This is not the case, however, with a couple from Pasco who recently were caught trying to buy items with a stolen credit card at the Kennewick Walmart.

The two individuals are Robert Lee Henry Jr., and Aimee Elizabeth Patterson. After an investigation that took a month, the couple were arrested.

That investigation began after the pair used a stolen credit card at that Wal-Mart. When Henry walked out of the store, the security officers asked to see Henry’s identification. He ran away from the officers.

Meanwhile, Patterson had taken off back into the store, and then left through another door. The pair drove off together. The whole thing was caught on security cameras, and it’s likely that part of the case against the duo will be based on that Walmart encounter.

When police finally tracked the pair down at home, they found Patterson. They searched the house, and they found Henry hiding in the home inside of a closet.

There’s no word as to whether the home was a mobile home, but we suspect that little detail would fit well into this story, whether it was the case or not.

Photo via ILoveMyPiccolo

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Identity Theft Out of Control

The identity theft protection market is booming, and for good reason. The fact of the matter is that there are nefarious folks out there who just can’t wait to get their hands on your personal information and use it for their own gain. While identity theft is a problem everywhere right now, a recent survey suggests that perhaps the most dangerous place in the world in terms of identity theft is Australia.

According to the study, one in ten Australians is a victim of identity theft. It’s estimated that identity theft costs Aussies around $1.3 billion a year and climbing. This is a startling statistic, and suggests that Australia may be in extreme danger.

The study, done by the firm Galaxy Research, was sponsored by VeriSign. VeriSign is a company that sells online security products.

The study found that the average Australian lost about $1,000 as a result of identity theft. If the survey results are accurate, just under 1.4 million Internet users in Australia have been victims of identity theft online.

There are a number of common methods that criminals use to steal identities online. Phishing emails – where the criminal poses as a financial institution or other type of business that the victim has an account with – are usually the most common schemes. Other schemes use emails that promise to reward the victim with millions of dollars for “holding” or “transferring” money.

More than half of users claimed to have encountered these kinds of emails in the past year.

Interestingly enough, age seems to be a factor in whether or not you are a victim of identity theft, at least in Australia. Gen Y users were more likely to be taken advantage of because they seem to be more lax about security measures, while users over the age of 50 tend to be the most security conscious.

Industry experts suggest that consumers need to become educated more about online security, and take extra caution when giving out personally identifying information to make sure it’s a legitimate situation.

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