Identity-Theft Protection: What Services Can You Trust?
New online services offer to protect you from identity theft, and some claim to help you undo damage after it happens. But when we tested the services, we found that many fall short.
Identity theft is a national epidemic, but some firms also see it as a marketing opportunity. In fact, some credit bureaus and banks that facilitated the spread of easy credit--and in the process unwittingly made identity theft a more profitable crime--now sell services to help you avoid having your identity pilfered.
For $10 to $20 a month, a company such as LifeLock or TransUnion will monitor your credit reports, alert you if anyone opens an account in your name, and help you recover fraudulent charges. But you can do many of the things these services offer to do, at no cost except for the effort (see "DIY Identity-Theft Protection: A 12-Step Program" for details).
To assess the paid services, we signed up with six leading firms. Even services that worked as advertised weren't comprehensive. Only two--Suze Orman's Identity Theft Kit and Identity Guard--offered protection for anything beyond financial fraud. Using any of the services is better than doing nothing, but you may still have to work to safeguard your identity.
For a detailed comparison of the features of the six services we looked at, see our chart, "How Much Identity Protection Do You Get for Your Money?"
identity theft
Receive the latest security news as it breaks.
