Considerations For Acquiring An Identity Theft Protection Service
There are many services popping up, promising ways to help protect your identity, touting that they offer peace of mind when it comes to the scary prospects of identity theft. Becoming a victim can have a huge impact on your life, not only financially, but emotionally (see article on Emotional Effects of Identity Theft).
The purpose of this article is to educate you on the lingo used, what to look for, and how to be best prepared when identity theft sneaks up on you. Follow along for tips on how to reduce your risks, although identity theft CANNOT be prevented.
Identity theft can happen to anyone, at any time. It is not based on your creditworthiness, your wealth or lack of it, your age, or your gender. When a thief (also known as a bad actor) abuses your information, it is not personal, the bad actors do not consider the ramifications of their actions.
Many credit card companies and banks offer some sort of identity theft protection, as do many membership clubs (AARP, Sams Club, buying service, etc); and insurance companies offer it with homeowner’s or renter’s policies; these are not the only options and most of these are limited anyway as to the services they can provide to you.
There are some components to look for in all plans. The first and critical characteristic is monitoring. And what do they monitor? Some plans monitor one credit bureau, some multiple bureaus. The credit bureaus share information back and forth. Using a plan that monitors only one bureau can be enough. This really is a judgement call based on you. The 3-bureau services generally cost more than the 1-bureau plans.
Besides credit bureau monitoring, what else do they keep an eye out for? It has been stated by the Federal Trade Commission that over 90% of financial identity theft starts with address change. I highly recommend you pick a service that monitors address changes with the United States Postal Service. If someone intercepts a credit card offer for me, (one of the pre-printed ones with my information already printed on it), they may change the address, so they receive the new card, not me. If my service monitors USPS address changes, I will know because the monitoring service will ask me if I changed my address.
Another consideration for monitoring is Dark Web Monitoring, it is a selling point for many services. The Dark Web is a hidden area of the Internet where a lot of nefarious activity takes place. Any good banker, fraud risk manager, lender, or credit services person will tell you that our information is already being bought and sold on the Dark Web every day. They receive this information in their training. A service that monitors the Dark Web for your data is a great service to have. It is no longer a case of IF we will become a victim of identity theft, but WHEN! When your time comes up, the question will be how serious of an issue will you have.
Will it be related to your financial accounts? Will someone use your medical ID or your Medicare card to get health care. Will someone have a driver’s license with the same information as your driver’s license; and then forget to show up to court for a DUI? This results in a warrant being issued in your name. Or might someone be using your Social Security Account number for employment to avoid garnishing or to avoid paying income tax? All of these are very real types of identity theft.
It is important to understand the coverages you have BEFORE you become a victim. Let’s talk about the 3 “R’s”:
Re-imbursement,
Resolution
Restoration
Reimbursement is identity theft coverage generally on your homeowner’s or renter’s insurance policy. And some clubs offer a similar service. These plans suggest you keep a running list of costs that you incur as a victim as you are trying to fix/restore everything. It might be direct losses, lost wages, child-care expenses (you can’t pay attention to the kids while you are on the phone and writing letters); credit bureau charges, gas, postage, etc.
The problem with this type of protection service is you are fixing the problem. You will have to become a specialist on identity theft. You will have to investigate how it happened, how to resolve it, and how to keep it from happening again. In this ‘season of life’ you will learn a lot, all the while thinking you won’t have to do this again. Truth is, if it has happened once, it will happen again. You pull time away from work, family, and hobbies, the things you enjoy doing. Along with the emotional effects of this crime, you become consumed with the idea of ‘getting back to normal’.
The second “R’” is Resolution. Last I counted there are about 31 companies in the marketplace today that offer identity theft protection plans (beyond the ones I mentioned above). These resolution companies aggregate all the data, resources, and procedures you will need to resolve the methods used to make you a victim of identity theft. They offer toll-free lines with counselors, consultants, and guides to help you along the way. With the resources available, along with information packets and checklists, they can greatly reduce the time it takes to ‘fix’ your issue(s). Once again, you are the fixer. If you have one of these services along with a Homeowner’s or Renter’s policy, you can also get your costs covered.
The third “R” is Restoration. This is the best kind of service. Two companies in the U.S. offer full restoration services, one of them limited to two of the types of identity theft I covered; the other company offers full restoration to pre-theft status; and full reputation management for both your online life and your offline life. In this style of identity theft service, you contact your licensed private investigator, they work on it for you. You go about life, time with family, peace of mind.
Let me explain it another way. Your car gets wrecked. You take it to the adjuster. He says “Yep that fender got banged up pretty bad. I am going to send you a set of PDF instructions on how to replace a fender; Go down to the dealer and order a new fender, don’t forget the right paint color. When you have it replaced, bring it back and I’ll inspect it and sign it off. Don’t worry your policy will cover all the costs.” This is representative of the reimbursement and resolution plans.
You say, “I was pretty sure when I bought this policy that if my car got damaged, I could get it fixed by a professional. I have never replaced a fender; I wouldn’t know where to start.”
I think you get my point. Look for an identity theft protection plan that offers full restoration by a professional.
Whether you have a great identity theft protection plan in place or not, if you become a victim, there are some key steps you need to start with. Since a crime has been committed, file a police report in your jurisdiction; it does not matter how or where the crime occurred, file the police report where you live or work.
Contact your identity theft protection service provider or insurer and inform them about the identity theft incident. Any work done on this claim should include the police report number. Cooperate fully with the service provider or insurer by providing any additional information or documentation they may require during the investigation process. Maintain clear and organized records of all communication and documents exchanged with the provider or insurer. Remember to act promptly, provide accurate information and documentation, and keep all relevant parties informed throughout the process.
For a quick review, evaluate services on the types of monitoring they offer. Evaluate how they will resolve it; or, if it falls to you, how will they assist you.
I suggest having comprehensive identity theft coverage, including restoration. Although it will be slightly more money, it is well worth it when you have someone on your side. Under law you are innocent until proven guilty; when it comes to identity theft if proves to be the opposite, you are guilty until you prove yourself innocent. Imagine being able to pick up the phone and have someone to begin the work of restoring your identity to pre-theft status.
Join me at the Omaha Empowerment Breakfast and I will refer you to individuals who can assist you in which ever method you choose. I recommend that you do pursue a service of some kind. Leaving it to chance is not an option.
Michael McKee is a long-time member of the Omaha business community, and has certifications in Cyber-Security and is a Certified Identity Theft Risk Management Specialist. If you have something to share with Michael McKee, you can write to michael@omahadailyrecord.com. Michael McKee also hosts the Omaha Empowerment Breakfast every first Friday of the month. Find out more at OmahaEmpowermentBreakfast.org.
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