Q It looks as if my personal information may have been stolen in two data breaches just in the past few months, and I’m wondering whether I should sign up for an identity-theft protection service. What do you think? A If you’re offered free ID-theft protection because of a breach, take it. But look carefully at the coverage and your risks before paying for the service.
First, find out what information was stolen in the breach. “The majority of the breaches we’ve seen lately have not involved Social Security numbers,” says Paul Stephens, director of policy and advocacy for the Privacy Rights Clearinghouse. The personal data stolen from Michael’s craft stores, for example, included credit card and debit card numbers, making it most important to monitor your bank accounts for suspicious activity. Many banks let you sign up for emails or text messages alerting you of transactions over a certain size.
If your Social Security number was stolen, most ID-theft-monitoring services won’t detect a problem until after a thief tries to take out credit in your name. Instead, you can help prevent ID theft by freezing your records at the three credit bureaus (Experian, Equifax and Trans Union). It generally costs about $5 to $10 each time you freeze and thaw your credit report, depending on the state (some states offer free freezes for ID-theft victims). You’ll need to thaw your account before you can apply for credit with a new lender.
You can do some monitoring on your own by ordering a free copy of your credit report from each of the three bureaus every 12 months at www.annualcreditreport.com; stagger your requests so you can get one free copy every four months. Check whether you already have ID-theft coverage through your bank, employer or insurance company; many are starting to provide such protection as an extra employee or customer benefit.
If you want to buy your own ID-theft protection, compare the costs — prices can range widely, with some services costing less than $100 per year and others charging hundreds of dollars. And understand exactly what services are provided. Make sure that medical, employment, tax and criminal ID theft are monitored and covered. They can be more difficult to untangle than credit theft. More robust services monitor all three credit reports plus public records and databases, provide one-on-one counseling, and contact your creditors to resolve any problems.
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