Dr. Identity (Identity Theft Prevention)

Ask The Doctor: Do Fraud Protection Services Work?

That's a question I am frequently asked when I tell people what I do -- "Does this stuff actually protect me, or is it just a scam?"

Indeed, ID theft protection is a growth industry now that people are cognizant of the crime and the damage it can do. And like any industry, within it you will find companies and individuals who are upright and honest, out to genuinely protect people and educate them....alongside frauds and hucksters of the worst sort.

Just off the top of my head, here are services I can think of:

IdentitySweep (That's ours ;) )

Lifelock

Truston

TrustedID

Identity Guardian

Privacy Guard

IDSecure

Believe me when I say this is only a partial list. :) So, how to separate the chaff from the wheat?

Here are the questions I would be asking if I was looking for any sort of ID theft protection service:

1. What do you do? Each of the aforementioned services is different and covers a different aspect of the ID theft problem. Some of them are reactive, i.e. they handle the fraud alerts for your credit, monitor each account, provide you insurance, etc. Some of them are proactive, i.e. they actively search for signs that your information is at risk and warn you about it.  What kind of service you sign up for will depend on your exact needs.
2. How at risk am I? If you're a confirmed victim of theft or fraud, you need to ensure all the basic steps (which are outlined here) are taken. If you're too busy or just don't want to handle it yourself, a service like Lifelock is very handy. If you are not a confirmed victim, but want to be proactive in ensuring you don't become one, something like TrustedID or IdentitySweep is probably more along the lines of what you want. Not every service is suitable for every situation, so be sure you know what you need before you subscribe.
3. What's your company's reputation? This is probably the best way to ensure you're getting a service that's worthwhile and not being sold a bill of goods--through due diligence. Does the service tell you who founded it? What's their background? As an example, TrustedID's CEO, Scott Mitic, has an extensive background in the consumer credit industry, and his service has consultation from the likes of Alex Eckleberry, Sunbelt Software CEO and a respected voice in the security industry. This would give them more weight and respect than "Joe's Chicken Shack and Credit Protection," for example.
   
4. What's the value of your service? This is really where you get down into the nitty-gritty of price comparisons and so on. How much does Service X cost? Does it do more for me than Service Y? So on and so forth.

Ultimately, it falls to each customer to do their research and decide what works best for them. The last thing you want is to go looking for a service that protects you from fraud and have yourself be scammed twice over--first from the crime, and second from "protection" services that don't work worth a damn.

DISCLAIMER: My company has deals with numerous companies mentioned in this entry. My views do not necessarily represent an endorsement or criticism of any of these other enterprises. My views also are not intended to function as a representation of the views of MyPublicInfo as a whole.