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Pricey Identity-Theft Protection Isn't Worth The Cost

Monday, March 10, 2014 - 8:00 AM
"The big three credit bureaus and companies such as ID Guard, LifeLock, and TrustedID want you to spend $119 to $275 per year for identity-protection services built around credit monitoring plus other personal information tracking. But you're already well protected free by federal consumer rights, eagle-eyed creditors, and do-it-yourself safeguards, two recent studies show."
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,636
1. Monday, March 10, 2014 - 8:32 AM
Thanks for the info and I really agree with you on this one.  My relative paid for that service for himself and wife and said it was a complete waste of money.  I recently found out my SS number was used to apply to a government agency for a type of help I never applied for.  I only found out about it when I got the letter from the agency telling me I didn't qualify.  However, what floored me was that Medicare nor Social Security could give me any info as to who really sent in that Application under my name giving them permission to check my finances!  All they could tell me was that it was applied for on the internet so they didn't even have a signature! 

I was furious that our government could allow someone to do anything with our social security number without insisting on just filling in an internet application.  So they said I should put an Identity Alert (as you mentioned) with all 3 Credit Unions which I did and I asked for all 3 reports mailed to me so I could read them.  I could find nothing showing anyone doing credit fraud etc. but I did have an eye opener as to what kind of people are responsible for our credit reports.  They had my credit card payments all messed up and when I disputed it and insisted they show I pay off all bills monthly "always", it returned to me still incorrect.  I figure we have more to be concerned about with the actual agencies than we do with the thieves out there!  They tried to sell me on "buying" their protection or I could not see my reports again until a year.  (I made the mistake of requesting all 3 at the same time which was my stupidity).  I would think if you have an Alert on your reports that they would allow you to see them more often but not unless you pay them.  So I am winging it hopeing however that Application was done with my SS number will be the end of it. 
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
2. Monday, March 10, 2014 - 9:06 AM
I do carry 'Identity Recovery Coverage' under my homeowners insurance policy. This covers ID theft case management and expense reimbursement with a limit of $25,000. The policy includes coverage for fees and expenses for an attorney for: (1) The defense of any civil suit brought against the insured by a creditor or entity acting on behalf of a creditor for non-payment of goods or services or default on a loan. (2) The removal of any civil judgement wrongfully entered against an insured. The annual premium for this optional coverage is $15.
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,636
3. Monday, March 10, 2014 - 10:53 AM
Paoli2. Just because you do not see anything on the reports now does not mean you are in the clear. Look at the passport issue with one of the passengers on that missing jet. It was reported stolen two years ago. The person using it was black. The person that lost it was white. 
A good idea to keep checking your credit report. I rotate my checks with the three companies so can check for free every four months.
FARFAR108 posts since
Feb 26, 2013
Rep Points: 387