Identity Theft Insurance- Is it really necessary?

[PAhunter]

I hasn't happened yet (to me), but, those that provide the coverage say it's a matter of time. Not if, but, when you become a victim. I know, of course they would, they are selling the stuff.

My question is does anyone think that it's time to buy into some sort of I.D. protection plan? I have pondered this off and on, usually for a day or two every month after I receive the offer (yes it comes monthly) from the NRA to subscribe to LifeLock.

Just reaching out there for your thoughts.

Thanks, Jack

[mojo]

Personally, no. I don't think so. You have to consider that I'm not a big fan of insurance in general. From what I understand, it's a huge PITA if it happens to you but I can't see paying a monthly/yearly fee for the insurance. Maybe if you were planning on buying a house or something within the next year, it might be worth it. But other than that, I don't think it's worthwhile.

* this is all my personal opinion, because I never had to go through it.

[medicjz]

Article Here

SAN JOSE, California (AP) -- Todd Davis has dared criminals for two years to try stealing his identity: Ads for his fraud-prevention company, LifeLock, even offer his Social Security number next to his smiling mug.


Todd Davis, CEO of Lifelock, uses his real Social Security number in his company's advertisements.

Now, LifeLock customers in Maryland, New Jersey and West Virginia are suing Davis, claiming his service didn't work as promised and he knew it wouldn't, because the service had failed even him.

Attorney David Paris said he found records of other people applying for or receiving driver's licenses at least 20 times using Davis' Social Security number, though some of the applications may have been rejected because data in them didn't match what the Social Security Administration had on file.

Davis acknowledged in an interview with The Associated Press that his stunt has led to at least 87 instances in which people have tried to steal his identity, and one succeeded: a guy in Texas who duped an online payday loan operation last year into giving him $500 using Davis' Social Security number.

Paris said the fact Davis' records were compromised at all supports the claim that Tempe, Arizona-based LifeLock doesn't provide the comprehensive protection its advertisements say it does.

"It's further evidence of the ineffectiveness of the services that LifeLock advertises," said Paris, who is lead attorney on the three new lawsuits, the latest of which was filed this month.

Davis learned about the fraud in Texas when the payday-loan outfit called to collect on the loan, he said. He didn't get an alert beforehand because the company didn't go through one of the three major credit bureaus before approving the transaction.

Davis said it's possible driver's licenses have been issued to other people in his name because of the widespread availability of his personal information -- and because of what he described as the flimsy mechanisms in place to report that kind of fraud.

Paris noted that LifeLock charges $10 a month to set fraud alerts with credit bureaus, even though consumers can do it themselves for free.

But Davis stands by his company and his advertising gimmick, which has appeared in newspapers and on billboards, radio and MTV. He even broadcasts it by bullhorn on walking tours through crowded downtowns.

"There's nothing on my actual credit report about uncollected funds, no outstanding tickets or warrants or anything," he said. "There's nothing to indicate my identity has been successfully compromised other than the one instance. I know I'm taking a slightly higher risk. But I'll take my risk for the tremendous benefit we're bringing to society and to consumers."

The lawsuits, for which Paris is seeking class-action status, highlight the fundamental limits on how much security identity-theft companies can provide.

Companies like LifeLock can help guard against only certain types of financial fraud by helping consumers set up alerts with credit bureaus, which inform them when someone tries to open a new line of credit or boost their credit limit to finance a buying binge, for example.

The services don't guard against many types of identity theft such as use of a stolen Social Security number on a job application or for medical services, or even the instance of an arrestee giving police a stolen Social Security number to shield his own identity.

LifeLock is also being sued in Arizona over its $1 million service guarantee, which the plaintiffs claim is misleading because it only covers a defect in LifeLock's service, and in California by the Experian credit bureau. Experian accuses LifeLock of deceiving consumers about the breadth of its protection and abusing the system for attaching fraud alerts to credit reports.

Security experts say complaints about the company reinforce the time-honored wisdom of keeping your Social Security number secret.

"There's been a lot of marketing, a lot of hype about LifeLock," said Paul Stephens, director of policy and advocacy with the Privacy Rights Clearinghouse, a nonprofit consumer advocacy organization. "The question is, 'How much protection does it really buy you?"'

"There is no company that can guarantee they can protect you (completely) against identity theft," Stephens said. "Absolutely nobody can do that."

I wouldn't waste the money, most of the stuff they do can be done for free by you from what I understand.

[PAhunter]

Article Here



I wouldn't waste the money, most of the stuff they do can be done for free by you from what I understand.

I've heard of this situation. I was not necessarily intent on their product, more so a general consensus of opinion on the insurance idea at all.
Is 'do it yourself' able to be done in a preventative way? or are you fixing something after the fact? Just asking, all I really try to do is protect my self the best way I can.

Jack

[Michele]

Personally, I think no.
I do subscribe to mycreditkeeper.com. Its a monthly membership that costs $9.95. I can monitor my credit 24/7 if I want to. They also give you updates via email if your credit changes in any way, shape or form.

I monitor my own credit. I like it that way. Besides, if something was to happen I would trust me to take care of it, not some agency who's being sued.

[Garpman]

I've had my credit card numbers stolen and used on three seperate occasions.

The only good thing going for me was that my credit limit is low, and so are the funds in my bank. Bank of America is pretty smart and knew pretty much that I would never, or am unable to make the kind of transactions made when the numbers were stolen.

Idiot thieves need to go after bigger fish.

[Scallywag]

I'm not sure I'm quite ready to pay for a service like that but like the OP I think about it from time to time. I would probably sign up a lot more quickly if I knew someone who'd had a bad ID Theft Experience, so don't count me out just yet....

Here's what I would respectfully suggest you can do now - and apart from #1 all of these are free or even save you money:

1. Buy a cheap shredder. EVERYTHING in my house that comes in with ANY personal information goes into the jaws of the shredder.

2. Virtually all financial institutions now offer online statements/bills (hey - it saves them money too on postage). Sign up for all of this - nothing is sent by email but you access it through a secure website. CANCEL all paper statements immediately. Use online bill payment wherever possible, too.

3. I personally scan all important documents into a password-protected, backed-up computer and shred the originals. I know - that's a bit anal, right?

4. Block all of those "pre-approved" credit card offers by signing up at the Federal Trade Commission: http://www.ftc.gov/privacy/protect.shtm

5. Get a free credit report every year - the major credit report agencies by law have to provide one to you every year: AnnualCreditReport.com.

6. Photocopy all of your credit/bank cards, and keep in a safe place along with the numbers you need to call if they're lost/stolen.

7. Never, ever put SSN or credit card numbers in an email. EVER!

[mjfletcher]

All things considered, if someone stole my identity it would be less than a week before they knocked on my door and paid me to take it back lol.

[Michele]

GREAT TIPS SCALLYWAG!

There is also another one.
If you pay anything by check only use the last 4 digits of the account number. Some put their whole credit card number on the check.
You can also "sign up" for credit card watch. I know it worked for me when I tried to purchase something that was expensive and out of the norm. They declined and I was told to call. Some might be embarrassed by having their credit card declined. I was not, actually I was relieved.

[str8shooter]

<snip>

Here's what I would respectfully suggest....

<snip>

Those were some great suggestions. Some I heard before and already do, a couple were new to me and I'll start doing them starting now.