Data breaches and identity theft have become so commonplace that people often ignore notices about the latest breach of their personal information.
"I just delete it. I don't pay any attention to it," shopper Trudy Bowler said.
According to the Federal Trade Commission, once someone has your personal information, they can open new accounts in your name, steal your tax refund, and even file fake health insurance claims.
The damage can take months, even years, to undo, so we wanted to know if it's worth spending some of your hard-earned money on identity theft protection services, which have become big business in recent years.
Dave Hatter of Intrust IT, which provides IT and cyber security support for businesses, said everyone should pay attention to data theft notices.
Some simple things you can do
Hatter said before there’s a problem, start protecting yourself by strengthening your passwords.
"Have a strong, unique password for every app and site you use," Hatter said. "And turn on multi-factor authentication," where you get a text or email to confirm any login attempt, for example.
Hatter said if you start to notice anything suspicious, he recommends paying for a service that can alert you to potential problems.
"In my opinion, it's probably worth it even if you have to pay for it yourself," he said.
So, if you are interested, what does ID theft protection cost? Here are some examples:
- Aura's family plan starts at $25 per month.
- LifeLock's monthly plan for two adults is $23.99 a month.
- IDShield's family plans start at about $30 per month.
- ID Watchdog from Equifax offers family plans starting at $23.95 per month.
- IdentityForce (a TransUnion Brand) starts its family plans at $24.90 per month.
In most cases, consumers can find savings by billing annually or signing up for a family plan versus an individual plan.
Inexpensive or free options
According to the Better Business Bureau, credit monitoring is a less expensive option if you don't have the budget for $250 or more a year.
"If you have the opportunity to do free credit monitoring," said Melanie McGovern, spokesperson for the BBB, "there are so many credit cards that offer that as an extra layer of protection. Absolutely do that.”
In addition, companies that suffer data breaches often offer a free year of credit monitoring, which can be worthwhile.
McGovern also encourages everyone to check their credit report through AnnualCreditReport.com.
"Pull your credit report, look at it. Make sure everything is what you did and not what somebody else did," McGovern said.
If you don't have a major purchase coming up, such as buying a car or a home, freeze your credit by contacting the three credit reporting agencies: Equifax, Experian, and TransUnion.
“That way, if your identity does get stolen, nobody can go out and take out a car loan or a mortgage or open a credit card in your name,” McGovern said.
A few simple steps now can prevent big problems down the road.
And that way you don't waste your money.
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