You must be hearing that every year the number of identity theft victims has been rising exponentially. There are already millions of identity theft victims so far. With a "nobody is spared" situation, you are as likely as anybody else. Since you cannot ignore the possibility of your identity being stolen, you are left with two options: either protect your identity yourself or hire a professional service for this purpose.
What do the statistics say? It is claimed that identity theft is the fastest-growing crime. It is a global issue but more prevalent in developed countries. Considering only the details of the USA for the year 2006, nearly 10 million people were victimized due to identity theft. You can compare it with the figures from 2004 to find that the number of victims has grown almost tenfold. A striking fact from the identity theft report shows that in most cases, the thief turns out to be a relative or a friend of the victim. On average, an identity theft victim loses around $500. If you're lucky, you may not have to pay anything since most companies no longer hold customers accountable for any charges made through identity theft. However, you shouldn't feel completely safe based on these statistics alone, as you could be the "unfortunate" one to lose much more in some worst-case scenarios. Statistics also warn that with the continuous changes in identity theft cases, you cannot fully rely on companies providing identity theft protection services.
What is offered under "identity theft protection service"?
1. Tracking of credit reports, police reports, medical records.
2. Alerts in case any suspicious activity shows up.
3. Assistance in the process of clearing credit through financial formalities.
While seeking assistance from a company, they may require some sensitive information from you. Different plans are offered for Identity Theft Protection:
- The basic plan for all plans is "tracking of credit report & alert in case of suspicious transactions." Some companies offer basic services, while others provide in-depth services.
- Under the basic plan, you will receive alerts whenever a new account is opened or a new inquiry appears on your report. You can get this basic plan free from many lenders.
- A more detailed plan for identity theft protection - you will be charged a fee: This plan includes monthly reports (instead of yearly reports in the basic plan) and counseling services. Some companies also cover out-of-pocket fees if you fall victim to identity theft.
- There are also comprehensive plans available that cover every cost a consumer incurs due to identity theft. Obviously, these plans charge much higher fees.
With all this information, you will be in a better position to decide whether you should pay for identity theft protection or if simply being careful is sufficient.