Is Fraud Monitoring Worth It?
The telephone rings as an unidentifiable phone number pops up on
the caller ID. After some inner wrangling, you pick up with a cautious,
“Hello.” There’s a moment of silence before a representative from a
banking institution offers the deal: For $12.99 a month, you can have
the safety of a fraud monitoring service that can protect you from
being the next victim of identity theft, with a free credit report to
boot. Sound familiar? It should. Companies are offering consumers these
types of services by phone, by mail and through television
advertisements for hundreds of dollars a year with the promise of big
savings if victimized. But are they worth it? Besides the peace of
mind factor, many experts seem to think there are better options–for
less.
the caller ID. After some inner wrangling, you pick up with a cautious,
“Hello.” There’s a moment of silence before a representative from a
banking institution offers the deal: For $12.99 a month, you can have
the safety of a fraud monitoring service that can protect you from
being the next victim of identity theft, with a free credit report to
boot. Sound familiar? It should. Companies are offering consumers these
types of services by phone, by mail and through television
advertisements for hundreds of dollars a year with the promise of big
savings if victimized. But are they worth it? Besides the peace of
mind factor, many experts seem to think there are better options–for
less.
“They really aren’t doing anything extra that you can’t do
yourself,” says Tanja L. Darrow, an attorney with Littler Mendelson in
Los Angeles.
yourself,” says Tanja L. Darrow, an attorney with Littler Mendelson in
Los Angeles.
Sure, you could pay for a basic credit monitoring service to
detect if someone is trying to open a new account in your name. Or you
could be proactive, monitor your own credit and add a free fraud alert
to your credit report. That way, creditors should contact you before
issuing any new credit in your name. A fraud alert is good for 90 days
and can be extended if needed.
detect if someone is trying to open a new account in your name. Or you
could be proactive, monitor your own credit and add a free fraud alert
to your credit report. That way, creditors should contact you before
issuing any new credit in your name. A fraud alert is good for 90 days
and can be extended if needed.
But if there are ”serious, serious” concerns regarding one’s
credit being tapped illegally, “you could put a credit freeze on your
account,” adds Darrow of this security option restricting access to
credit reports and is free for identity theft victims, but otherwise
costs $10.
credit being tapped illegally, “you could put a credit freeze on your
account,” adds Darrow of this security option restricting access to
credit reports and is free for identity theft victims, but otherwise
costs $10.
In the end, any fraud monitoring service claiming it can protect
from identity theft is making false promises. But if trying one out is
the only way to bring a sigh of relief, make sure to do your homework.
Google to find out service pros and cons, and check with the Better
Business Bureau for complaint listings that may help in the
decision-making process, advises Linda Foley, founder of the Identity
Theft Resource Center in San Diego. ”If you have a lot of
discretionary money and you want to do that, and it gives you a sense
of peace, do some shopping around,” says Foley, but “all have their
limitations.”
from identity theft is making false promises. But if trying one out is
the only way to bring a sigh of relief, make sure to do your homework.
Google to find out service pros and cons, and check with the Better
Business Bureau for complaint listings that may help in the
decision-making process, advises Linda Foley, founder of the Identity
Theft Resource Center in San Diego. ”If you have a lot of
discretionary money and you want to do that, and it gives you a sense
of peace, do some shopping around,” says Foley, but “all have their
limitations.”
–Arnesa A. Howell
