“Is Anyone Safe from Identity Theft?” Part III
Steps for the Consumer

It is important for consumers to be aware that their personal identifying information (PII) is vulnerable to exposure.  Recognizing the numerous ways consumers can become victims of identity theft, many businesses have been established to assist consumers in “protecting” their identity.  The last issue of the ITRaC News newsletter addressed the no-charge (or minimal fee) methods by which consumers could take proactive measures to protect their PII.  In this issue, we are covering the different fee-based products and services that are currently available to the consumer.  Please understand that some of the following products and/or services are reactive in nature, providing notice of a problem after the fact.

Identity Theft Products Available
Many of the consumer products currently on the market sound enticing.  The question each consumer must ask is "what do they cover?"   If the product only monitors your credit reports, it will not tell you that someone skimmed your existing credit card at a restaurant and is buying bags of new clothes while you are at work.  It also won’t let you know that someone is receiving government benefits in your name.

It is important to educate yourself on identity theft and the “prevention” products available.  This list includes:  Credit Monitoring Services; Identity Monitoring Services; Credit Freeze Products; Data Sweep Services and Secure Payment Agents (SPAs) – Other products include Victim Resolution services and Identity Theft Insurance.

Credit Monitoring Services:
Credit monitoring is a service which allows consumers to be advised about changes on their credit reports, and/or to view a summary of their credit report upon request.  This service may monitor only one credit report or it could monitor reports from all the major Credit Reporting Agencies (i.e. Experian, Equifax and TransUnion).  You should be aware that all three reports are not identical. 

If you wish to sign up for a credit monitoring service, you should review and evaluate the various options available to determine the product and/or service that best meets your needs.  

To date, credit monitoring products only help in a limited area of financial identity theft, and do not address the other forms of identity theft, such as criminal, governmental services, etc.   They also do not indicate account takeover or the misuse of existing credit cards.   In addition, new bank accounts, utility accounts, and some other types of financial accounts may not appear on your credit report until they go to collection.

Identity Monitoring Services:
These new services go beyond traditional credit monitoring by including additional areas where fraudulent activity may be indicated.  In some cases, these may be more proactive in alerting you to fraudulent activity in real time.  Each service is slightly different.  Additional areas may include: monitoring for items such as address changes; identifying unusual personal activity (such as applying for several lines of credit with auto dealers in the same week); scanning the Internet for exposed account information; and screening for other items that may indicate something is awry. 

Credit Freeze Products:
A credit or security freeze is a stronger measure than a fraud alert.   It literally locks your credit report from viewing for the purpose of new lines of credit, and for some employment and tenancy.   When in place, potential creditors, insurance companies, landlords and some employers doing financial background checks may be told that your report is unavailable for viewing.   The price varies from state to state and is usually free for victims of identity theft (Please see our State and Local Resource Map  for your states freeze law).  This product is typically added to other identity theft services.  For more information about Credit Freezes see ITRC Fact Sheet 124 – Credit Freeze and Fraud Alerts.

Data Sweep Services:
This type of company checks the Internet for listings of your personal identifying information.  While names, Social Security numbers and financial records are critical to identity theft, other pieces of information, such as your email address, also expose you to spammers and identity thieves.  Once personal information is detected, these services will provide an alert so that steps may be taken to remove it.

Secure Payment Agents (SPAs):
A “Secure Payment Agent”, as defined by ITRC, allows the consumer to control the use of all their sensitive personal information whether shopping, paying bills online, or registering at websites.  A SPA has the ability to replace all of the user’s real personal information with anonymous data that becomes useless after a transaction and cannot be tracked back to the use.

Victim Resolution Products:
By definition, victim resolution or restitution is the process by which a victim clears all fraudulent records created by an identity thief.

There are companies that will do all the restoration work for you.  Make sure the company will cover any identity theft case that unknowingly existed before you purchased the program.  A contract clause denying coverage for a pre-existing identity theft case is the one that most consumers discover after the fact and then find themselves without assistance.

Identity Theft Insurance:
Identity theft insurance helps to replace real expenses incurred by the victims of identity theft, thereby minimizing the financial impact that an identity theft case may have.

As you consider these types of products, ITRC would like to remind you to shop carefully, read contracts and privacy policies, and check out companies with the Better Business Bureau or state Attorneys General.  You can also do an Internet search for complaints about specific companies or services.  There are many companies that are offering a combination of these services.  Many of them are beneficial.  However, it’s your responsibility to understand the wide range of identity theft issues and determine the benefit of the services offered.

It’s up to you to decide what product(s) fits your needs most. Personal activities like document shredding and keeping personal information secure do not eliminate the fact that you only control a limited amount of your personal information. Remember, there is no way to completely eliminate the chance of becoming an identity theft victim.  However, with heightened awareness and proactive steps you can certainly reduce your risk dramatically.

For more detailed information on the types of products and services available, and suggested questions to ask, please refer to ITRC Fact Sheet 132 Identity Theft Products.