Would you like to know when to get Identity theft protection? You cannot create awareness about people being careful about disclosing their information online.
Identity theft is real, and the victims of it tend to suffer the impact, sometimes from months to years.
Cybercriminals are constantly evolving ways to steal the identities of unsuspecting individuals.
When they get a hold of your data, they do not waste time wreaking havoc on their prey.
A very good way to guard against this is to get identity theft protection. The question we then often hear is when it is right to get identity theft protection.
Properly understanding when you should get it is important to safeguard your financial and personal information.
In this article, we will explore the various life stages and all the scenarios in which you need to get identity theft protection for yourself.
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Now, let’s get started.
Why Is Identity Theft Protection Important?
Identity theft protection is important because it offers users comprehensive monitoring and full support to prevent unauthorized access to their personal information.
You have access to identity monitoring; credit monitoring, timely alerts, and assistance during identity restoration are some of the features of these services.
When you purchase these services, some benefits you enjoy are that suspicious activities are detected early and reported to you; afterward, you can minimize or eliminate damage and recover quickly if your identity is compromised.
When Should You Consider Identity Theft Protection?
1. After Experiencing Data Breach
It was recently discovered that data breaches have continually been on the rise. When there is a data breach, users’ sensitive data will be exposed, and yours could be one of them.
When you are alerted that there is some form of data breach to your account, it is time for you to get identity theft protection as soon as possible.
These services would then always notify you when there is any slight use of your personal information without your knowledge; this allows you to quickly take action to prevent the issue from escalating.
2. When You Start Using Online Banking
We are now in an age when banking has become seamless, and we now transact online from the comfort of our homes, which comes with cyber risks.
When you begin to do most of your financial transactions online, it might be time to get identity theft protection.
This is because you need the benefits and security that it offers.
Such benefits include the fact that they monitor your accounts for suspicious activity solely to ensure that transactions you do not carry out are detected and dealt with immediately.
3. During Major Life Events
Major life events involve sharing your personal information with some institutions, which exposes you to identity theft risk. We will consider some life events that warrant sharing your personal information.
Moving To A New Home: as you change location and move to a new home, you are also moving your details across multiple platforms online, making your details susceptible to interception.
When You Are Getting Married: when you get married, you might have to combine finances or share your personal information with your new family members.
If the process is not handled carefully, you might set up your identity for theft.
Divorce Or Separation: one common thing that happens during the force is the sharing of not just personal information but also financial accounts; during the process, those details can get misused.
In all the above situations, a good way to protect yourself would be to opt for identity theft protection services. With that, you get peace of mind, and rest assured that your personal information is secured.
4. When Applying For Loans Or Credit Cards
When applying for loans or credit cards, you must provide sensitive details such as your Social Security number and credit history.
Credit monitoring services can track the credit reports and inform you of fraudulent applications made in your name, thus protecting against identity theft.
5. When Your Children Become Teenagers
Teenagers and kids are the most vulnerable group to identity theft since their SSNs have not been used before, and their credit records are clean.
When your children reach their teenage years and want to get jobs, get driver’s licenses, or enroll in college, they must have their identities guarded.
Some identity theft protection services also offer the ability to track their information and notify you of any fraudulent activity.
6. If You Are Frequent Traveler
Long-term travelers are more vulnerable to identity theft because they often connect to open Wi-Fi networks and can misplace passports, credit cards, and other identification documents.
Paying for identity theft monitoring services is useful while traveling to ensure that you would know and take action immediately if your information were compromised.
7. For High Net-Worth Individuals
These people are also vulnerable targets for identity thieves because of their large sums of money. In this category, you must ensure excellent protection against identity theft.
These services can offer better control, greater insurance, and tailored attention to safeguard your financial assets.
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Key Features Of Identity Protection Services
Before finally making a choice on which identity theft protection service to go for, you should make sure that the following key features are present:
- 1. Identity Monitoring:
Scans for your personal information on various databases, including the black market, for signs of compromise.
- 2. Credit Monitoring:
Monitors your credit reports from one or all three credit bureaus (Experian, Equifax, and TransUnion) and notifies you of any updated information.
- 3. Alerts and Notifications:
Offers immediate notifications when your data is used in credit, services, or utility applications.
- 4. Identity Restoration:
It connects you with professionals to assist in the recovery process if your identity is taken, and it helps with communications with credit bureaus, banks, and the police.
- 5. Insurance Coverage:
Offers reimbursement for specific out-of-pocket costs associated with recovering from identity theft, including legal expenses, lost wages, and unauthorized bank withdrawals.
What Are 3 Steps You Should Always Take To Prevent Identity Theft?
Since identity theft is growing to become a menace in the world today, there are certain measures you can carry out to protect yourself.
Below are the three important steps you should take to prevent identity theft:
1. Keep Your Personal Information Secure:
The first step should be to ensure that your personal information is secure.
Personal information like your social security number, birth certificate, financial record, etc., should not be found anywhere but in a safe place only you can access.
Before you no longer use a document that contains your personal information, instead of just dumping it in the bin, shred and even burn it to avoid your details entering the wrong hands.
Do not share your details over the phone; if you must insert any of your information on any website, do your due diligence to ensure that such websites are safe.
Finally, limit personal information in your pocket or wallet as much as possible.
2. Monitor Your Credit Reports, Bank And Credit Accounts:
Continued examination of bank statements and credit reports may assist you in identifying fraud in time.
Monitoring your bank and credit card statements monthly to identify fraudulent transactions is advisable.
Go to AnnualCreditReport for a free credit report from the three main credit reporting agencies: Experian, Equifax, and Trans Union.
Search for new and suspicious accounts or inquiries that you do not recognize; this could be pointing to signs of identity theft.
You must also report any inaccuracies to the financial institutions and the credit bureaus. It would be advisable to sign up for a credit tracking service that notifies you if there has been any modification in your credit status.
3. Ask Questions Before You Share Your Information:
Whenever you must provide personal information, you should always find out why it is necessary, how it will be utilized, and how it will be safeguarded.
You are advised to be most cautious with unexpected inquiries, checking the sender’s identity by contacting the organization they claim to represent using the contact details obtained from other sources.
Do not open unknown or suspicious emails, as they might contain links to a fake website or what is commonly known as phishing.
If you secure your details, regularly check your accounts and credit reports, and ask questions before providing your information, then the risk of identity theft is considerably low.
These preventative steps are crucial to safeguard your identity and preserve your money.
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Can Changing Your Name Prevent Identity Theft?
Adopting a new name may appear as the ultimate safeguard against identity theft, but it could be more efficient.
Identity theft means the unauthorized use of an individual’s personal information for unlawful purposes, and the mere adoption of a new name cannot eliminate the previous identity or protect previous accounts.
- Limitations Of Changing Your Name:
Firstly, your SSN or other significant identifiers do not change while changing your name.
Your SSN is one of the most important pieces of identification an identity thief can obtain, and thus, if it stays with you, so does your risk.
Although identity theft is impossible if your SSN has been changed, thieves can retrieve your financial history, credit reports, and other details.
- Updating Records And Documents:
When you change your name, you must notify all the organizations with whom you have accounts, including your banks, credit card companies, loans, and other legal documents.
However, this process takes a lot of time and does not ensure that the former name will not be utilized.
Moreover, if the name change is not communicated comprehensively across institutions, disparities could complicate your financial and legal business.
- Comprehensive Measures:
Do not solely depend on changing the name but rather embrace other drastic measures of identity protection. Such measures include:
- Checking your credit reports frequently.
- Choosing complex and distinct passwords.
- Employing two-factor authentication.
- Protecting your identity.
It is crucial to scrutinize your financial statements periodically and respond immediately in case of any irregularities.
Changing names is not a very efficient way of dealing with this problem because identity theft is still likely to occur. It would certainly add an extra layer.
However, more is needed to solve issues with identity protection. Taking strict preventive measures to protect your identity and personal data is the best way to avoid being a victim of this crime and remain financially secure.
Who Is Legally Liable For The Cost If Someone Steals Your Identity?
In the case of identity theft, it is not always easy to decipher who is financially liable; this largely depends on the type of fraud that occurred and the measures taken within a certain period.
In most cases, you are not legally liable for fraudulent debts made by identity thieves so long as you report the crime as soon as possible.
- Credit Card Fraud:
Following the FCBA, the consumer is liable for unauthorized use of a credit card not exceeding $50.
Nevertheless, most credit card companies excuse this fee if you report fraud promptly. You must notify your credit card issuing company as soon as possible to minimize your losses.
- Bank Account Fraud:
The Electronic Fund Transfer Act (EFTA) shields consumers from electronic transactions they did not authorize.
Lost or stolen ATM or debit cards can be reported within two business days, and your loss will be, at most, $50.
When you send a report within the first 60 days, your liability rises to $500, and if you fail to do so, you may be charged for all unauthorized transactions.
- Other Financial Responsibilities:
In the case of loans or utility accounts created in your name, the responsibility lies with the bank or utility provider if you report the identity theft and can prove you did not open the accounts.
Although consumers are, to a certain extent, shielded from having to bear the cost of identity theft, time to report and gather relevant evidence is critical.
Being aware of your rights and obligations from the FCBA and EFTA laws will reduce the losses to which identity theft subjects you.
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Final Thought
Identity protection services are good for those people who want to protect their personal information.
Identity theft protection is most effective if one takes it before becoming a victim.
Whether you are going through significant changes in your life, getting used to online banking being a part of life, applying for loans, or want to safeguard your family’s identity, having good identity theft protection in place can be beneficial.
Now, learning about the cases when identity theft protection is especially important and choosing one of the most functional services, one can shield oneself and one’s family from the constantly increasing danger of identity theft.
Paying for an identity theft shield guarantees your identity is safe; thus, using the internet and similar services is not risky.