The Best Identity Theft Protection Services Of January 2024 – Forbes Advisor

Why We Picked It

Aura arguably packs more features for the price than any of its competitors. It offers plans for individuals, couples and families—up to five adults and unlimited kids. Regardless of which plan you choose, you’ll get the same key safety identity theft and financial fraud protections as well as device security tools like antivirus, VPN and safe browsing. Family plan adds child safety tools like online parental controls, safe gaming with cyberbullying alerts and child three-bureau credit freeze assistance.

Pros & Cons

Why We Picked It

Pros & Cons

Why We Picked It

Pros & Cons

Why We Picked It

Pros & Cons

Why We Picked It

Pros & Cons

Why We Picked It

As the largest data breach response provider to the federal government, IDX has built privacy tools that meet the most stringent of security standards. Through its IDX Complete consumer plan, you too can receive proactive privacy defense through features like its military-grade password protection and ForgetMe Data Removal. ForgetMe can remove your personal information from over 100 brokers, which is far more than are covered by similar tools from some competitors.

Pros & Cons

Why We Picked It

Pros & Cons

Identity theft can happen in a variety of ways, but all involve the use of your personal information to commit fraud. Here are some of the most common causes of identity theft:

• Data breaches: Data breaches occur when cybercriminals gain access to a company’s database containing personal information such as names, addresses, Social Security numbers and credit card details. This information is then used to carry out fraudulent activities, such as applying for loans or credit cards in the victim’s name.
• Spoofing and phishing schemes: Spoofing and phishing schemes are attempts to obtain personal information from individuals by pretending to be a reputable entity or organization such as a bank, government agency or service provider. These scams usually occur via email, text messages or phone calls. Once the victim provides the information, the criminals can use it for identity theft.
• Hacked accounts: Identity thieves could gain access to a victim’s personal information by hacking into their email, social media, online banking or other accounts. Once inside, the criminal may find passwords, credit card details, personal identification numbers (PINs) or more which they can then use to commit identity theft.
• Compromised devices: Identity theft can also happen when a criminal gains access to someone’s computer or phone by using unsecured public Wi-Fi networks, viruses, fraudulent websites or other means. Once inside, the thief can install malware or spyware to monitor the victim’s activity and steal sensitive information.

These are just a few of the ways that identity theft can happen. But dedicated thieves could also steal your personal information from financial documents in your mailbox or even a receipt you tossed in the trash. Whether in the physical or digital world, any place or item that contains information about you could be a potential target for identity thieves.

Financial Identity Theft

Financial identity theft is any scheme that involves using a fake identity to steal money. Criminals may use a victim’s name to:

• Apply for a credit card
• Apply for a loan
• Access the victim’s financial accounts
• Open a new bank account, which will then be used to commit other forms of fraud
• File a tax return and receive a refund

Victims often become aware that their identities have been stolen because they receive a statement in the mail from a financial account they don’t recognize. Or they may receive a letter from the IRS informing them about a suspicious return that’s been filed in their name.

Once you become aware that identity thieves have your information, it’s important to act quickly to minimize your financial losses. To limit credit fraud, you can place a fraud alert on your credit reports and/or freeze your credit.

For tax identity theft, you’ll want to notify the IRS that you may be a victim of identity theft. Once it’s confirmed that you’re a victim, you’ll be issued an IP PIN each year that will be used to verify your identity on all future returns. You can also request an IP PIN at any time.

Medical Identity Theft

Medical identity theft is when someone uses another person’s information to obtain medical care or services. This can include using someone else’s name to pay for treatment, obtain prescription drugs or make an insurance claim under the false identity.

Often, someone becomes aware that medical identity theft may have occurred by receiving an unrecognized bill from a healthcare provider or being contacted by an agency that’s trying to collect on medical debts for services that they never received.

If you’ve been the victim of medical identity theft, the path to recovery starts by checking your medical records with all related healthcare providers. If one or more are unwilling to share your records with you, you have the right to appeal. If you find incorrect information on your medical records, contact the medical provider in writing to dispute any errors and request their removal.

Online Identity Theft

According to the FBI’s 2022 Internet Crime Report, cybercrime losses reached an all-time high in 2022 of $10.2 billion, up from $6.9 billion in 2021. Phishing, identity theft and spoofing were each in the top 10 of most common crime types by victim count.

To avoid online identity theft, always verify senders before clicking on any email links, set up two-factor or biometric authentication on your accounts when possible and consider using cybersecurity tools like antivirus and VPN to protect your devices and online privacy. You should also be wary of sharing information on social media that could be useful to an identity thief.

Identity theft protection services search for any signs that your personal information is being used by bad actors. Among other things, ID theft protection companies may alert you if they notice that:

• Your information is found on the dark web
• Your information was used to apply for a credit card or bank account
• Your information was used to apply for a payday loan
• Your information was used at a cash-checking service
• Your information is found on new social media accounts
• Your information is found on a court or arrest record
• Your information is found on a sex offender registry
• Records show that you’ve changed addresses
• Large transactions have occurred in your bank or investments accounts

In addition to identity monitoring, many ID theft protection companies also offer credit monitoring. The best identity theft protection plans monitor all three major credit bureaus and will alert you if a change appears on any of your credit files. They may also provide assistance with adding a fraud alert to your credit reports as well as locking or freezing them.

Online safety and privacy features are also commonly found on identity theft protection services. For example, members may receive access to tools like antivirus software, VPN, password managers, ad blockers and more.

Next, identity theft protection companies typically provide resolution services to aid with your recovery after your identity has been stolen. These services can help you quickly create and execute a recovery plan.

Finally, many ID theft protection plans provide identity theft insurance. It’s common for these policies to cover things like legal fees or other expenses related to recovering your identity. Some policies offer even more protection by promising to reimburse any stolen funds as well.

It’s important to point out that many of the services that identity theft protection plans provide can be done for free or at a lower cost. For example, you could regularly check your credit reports, financial accounts and medical records to keep an eye out for questionable items. You can also freeze your credit on your own for free, and you can search for your personal information on social media, government websites and more.

While DIY identity and credit monitoring is certainly possible, it also takes time and vigilance. If you value having full control of your identity protection, you may be willing to put in that effort. But others might prefer to delegate these tasks to professionals who they can know will be monitoring their identities 24/7 on their behalf.

If you’re already planning to pay for a VPN or antivirus service, it might make sense to sign up for an identity theft protection service that includes those tools. In many cases, a robust identity theft protection plan may only cost you a few dollars, yet it could provide a much higher level of protection.

Note that if your information was recently compromised in a data breach, the company that leaked your data may offer you free identity theft protection for a certain period of time. Also, when it comes to financial account monitoring, many credit card issuers today offer built-in fraud protections and alerts.

Lastly, if you’re exclusively looking for credit monitoring, you should know that free options are available. Compare the best credit monitoring services.

Here are some of the benefits that identity theft protection services can provide:

• Identity monitoring (including your name, SSN, address and more)
• Early identity theft detection and quick response
• Credit monitoring
• Financial fraud protection
• Identity theft insurance
• Identity theft resolution services
• Device protections
• Online privacy tools
• Child identity theft protection and credit monitoring

With effort, you can implement many of these protections on your own for free or at a minimal cost. However, identity theft insurance is a key benefit that’s more difficult to access outside out of a paid plan. ID theft insurance can provide the peace of mind that you and your family will be protected from financial losses due to fraud.

Identity Theft on the Rise

According to the FTC, identity theft reports have more than doubled over the past five years. In 2022, it received 1.1 million reports, while 400,000 reports were filed in 2018.

The FTC also reported that financial losses due to fraud rose to $8.8 billion in 2022. That was up nearly 50% from 2021’s total of $5.9 billion. Identity theft was the FTC’s top fraud category in both years.

It’s easy to become overwhelmed with identity theft protection options, mostly because the companies that work in this niche all provide the same general services. However, there are always features that stand out among different ID theft plans, so it’s crucial to look them over to see which benefits you need the most.

If you’re struggling to determine which ID theft protection provider to trust with your identity, these tips can help:

• Look for plans with identity theft insurance. Identity theft insurance is a final stopgap that can protect you against financial losses if you’re a victim of identity theft. With that in mind, we only selected companies that provide ID theft insurance for our ranking. Some offer lower levels of coverage, so make sure any plan you’re considering has enough identity theft insurance to make you feel comfortable. The gold standard is $1 million in insurance protection per plan.
• Check for three-bureau credit monitoring. Also, check for monitoring of all three major credit bureaus, and take note of the fact that basic plans may only include one bureau. Since fraud may not show up on all of your credit reports right away, having a plan that monitors all three of your credit reports is ideal.
• Decide if you need an individual plan or a family plan that provides protection for kids. Some providers offer family plans with special features to protect children’s identities, while others do not. If you have children, you’ll want to consider whether to include them in your identity theft protection plan.
• Compare pricing and look for discounts if you pay once per year. Compare pricing and make sure any plan you’re considering is affordable on a monthly basis. Also, check for discounts for autopay or annual payments. Many providers do offer some sort of discount if you pay for the first year upfront.
• Consider companies that offer a free trial. If you still can’t decide, try out a provider that offers a free trial. This will give you some time to try out the features of a plan to see if the monthly cost is worth it. If you decide not to move forward with a paid identity theft protection plan before the free trial is up, you can cancel.