Josh Elledge - Chief Executive Angel
ID theft is a part of life today. Sadly, you likely know someone who's been a victim. Anthem is a company that just had its database breached and exposed the personal information of 80 million customers and possibly former customers that go beyond that. What's scary is that the information includes names, birthdates, email address, employment details, Social Security numbers, incomes and street addresses. Cyber security experts consider this a very dangerous combination of information.
ID theft can be so much more extensive than someone just trying to open a credit card in your name or charging a purchase online with your credit card number. ID thieves impersonate people to get jobs, medical services and insurance benefits, gain government benefits, commit tax fraud, get utilities and services, and more. They even impersonate others to commit crimes. In 2015, this is simply a risk that is worthy of insurance of some sort, in my opinion.
When trying to prevent identity theft, most people automatically think of credit monitoring or credit protection measures. While it is advisable to use make use of free annual credit report,this is only a small part of the problem.
I've personally used ID theft protection for my family for the past six years. Not all consumer experts will advise this monthly expense ““ but I've found that the cost is minimal and the immediate awareness of account or life activity alone is worth the investment.
Services will vary in terms of areas of your life monitored (including which credit reporting bureaus are watched), amount of protection offered when restoration is needed, and of course, price.
Many insurers offer homeowners policy riders for ID theft, but sometimes the coverage is limited. Not only is the insurer's liability limited, they don't always cover children, and they may or may not actually assist you with the piles of paperwork, possible legal issues, and headaches that come with having your identity stolen. Likewise, not even all theft protection companies cover the numerous areas and kinds of ID theft.
I'd recommend you take a look at Quizzle.com, Credit Sesame, Zander Insurance, and Lifelock who each offers full ID fraud restoration services, for individuals or the entire family, at a very low price. Many of these services will monitor the black market and public records for your personal information ““ which can be extremely helpful in identifying theft early. Prices range from $7 to $30 a month per individual. Again, do some shopping around to match your level of risk with the proposed monthly investment. You'll likely do fine with a mid to lower cost plan.
Hand-in-hand with ID theft recovery insurance, helping to prevent fraud in the first place is a priority. Here are my top 3 tips for reducing your family's risk:
1.Pull the credit reports ofallfamily members, including children.I recommend usingQuizzle.com or Credit Karma in addition to your free annual credit report from the big 3 credit bureaus.) Simply stagger their use (every couple months) to get updates more frequently. If you find any unknown debts, investigate immediately.
2.Protect personal information.Never give your social security number or birth date over the phone unlessyouinitiated the call to the company. Likewise, do not fill out any mailed form unless you were expecting the paperwork. Don't carry your social security card on you unless you're going to an appointment where you'll need it. Get very savvy as to your online behavior and when you shouldn't share your personal information.
3.Place fraud alerts and credit freezes. You can do this right now. Place your social security number on fraud alert, and/or set a credit freeze so it is difficult for creditors to obtain your credit report and nearly impossible to open any new kind of credit. Placing a fraud alert is free, while freezing your credit file is free in most states, but carries a small fee in some states, depending on the credit reporting agency.
