If you’re thinking about paying for identity theft protection, it’s worth checking to see if you already have access to free or deeply discounted monitoring services or recovery help.
While there’s no way to eliminate the risk that you could become a victim of identity theft, this is one step you can take to minimize it — and save money, too.
Where to find free identity theft protection
You can purchase identity theft protection, which can cost $200 or more per year. But you may also have access to free or low-cost services you can activate. Sources could include:
- Your bank or credit union.
- Your credit card issuers.
- Your employee benefits plan.
- Your homeowners or renters insurance.
- Organizations you belong to, such as AAA or AARP.
Also, if you’re affected by a data breach, the company involved may offer free credit or identity theft monitoring for a time. Watch for data breach notices in the mail or your email inbox and sign up by the deadline.
» Learn more: What to do after a data breach
Compare different levels of coverage
There are two main types of identity theft protection.
- Monitoring. At its simplest, credit monitoring services notify you when your credit is checked, which is a clue that someone may be trying to open credit in your name. These services often include coverage such as fraud resolution services, or lost wallet protection, which allow you to get credit, insurance and other cards replaced with one phone call.
Some services layer on other kinds of monitoring, such as flagging the use of your Social Security number, bank account credentials or health insurance. - Identity theft recovery assistance and insurance. These services are designed to help you clean up the effects of identity theft. Insurance generally helps victims recover financial losses and money spent as a result of identity theft.
The types and amounts of coverage vary, and so can the documentation required to access them. Read the terms and conditions or terms of service, and know what receipts or records you might need to provide.
How to reduce your risk of identity theft
The best way to reduce risk is to make yourself less of a target.
A credit freeze is your first line of defense against scammers because it prevents them from accessing your personal credit data and opening new accounts in your name.
Locking your Social Security number is another step you can take to prevent others from going through the Social Security Administration to get or change your personal information.
You can lock your SSN with E-Verify — a system that allows employers to quickly confirm a potential employee’s work eligibility — to ensure no one else uses your SSN for employment. Just be aware that you’ll have to remove the block before accepting a new position.
Other strategies include:
- Choose long passwords and don't recycle them. Don’t let one password be the master key to your personal information. Use a password manager service such as LastPass, Bitwarden or 1Password to keep track, especially as you make your passwords more complex.
- Favor safety over convenience. Use two-factor authentication when it’s offered. Consider an authenticator app such as Authy, Google Authenticator or Duo. These apps are even more secure than being texted a code.
