Dec

29

An Introduction To Identity Theft Protection: Criticisms and Misconceptions: Article #2

Filed Under Identity Theft Protection | 

There is some criticism and misconceptions today about identity theft protection. We will discuss a good amount of them in the articles that follow. For now, I would like to talk about one criticism that I disagree with. Some critics of this industry claim that identity theft protection is not necessary and the victim can fix his or her own problems for “free.” Let’s discuss this.

I feel the first part of this claim is false. In today’s times identity theft protection is needed. The second part of this critique, however, is sort of true. Yes, victims can fix the damage themselves for “free” without identity theft protection. However, by the time victims learn of the fraudulent activity, the damage to their credit and identity is significant and many times severe. This means a major disruption in the victim’s life. Is that really free?

It is important to know that most identity theft protection plans offered today is a combination of credit monitoring and victim assistance by individuals who are either experienced investigators or adequately trained in the field. I believe that most companies offering identity theft services deliver what they advertise.

The first line of defense against identity theft, regarding your credit, is not practices such as shredding your documents or using cash at times. I consider these actions best practices, however, the first line of defense against identity theft is credit monitoring. Not having identity theft protection is not having credit monitoring. Without credit monitoring, a victim will most likely not be aware someone is tapping into their credit until months later. By that time the damage has already grown to a significant amount of fraud. When one’s identity is stolen, the victim usually receives their first call from a collection agency and their credit is already damaged. I rather receive notification from a friendly monitoring service hours after the first fraudulent transaction, not months later from a curt collections agent.

Without protection, at this point the victim can start his or her journey of countless phone calls, weeks, months or possibly several years of frustration. Can you imagine not being able to buy a house or borrow money at a crucial time in your life because your credit is on hold? Because of the unfettered fraudulent use of your credit over many weeks or months you may have to make countless phone calls at work attempting to straighten out matters. Worse yet, you may not be allowed to make phone calls at work in the first place. If credit monitoring was already in place, criminals would not be able to get this far. And, in the event fraud was still able to be committed, identity theft specialists will do most of the work for you so you can concentrate on your job and family.

Still, critics may say victims can monitor their own credit, claiming we are all entitled to one free credit report each year. Another claim may be that a victim (or anyone for that matter) can place fraud alerts on their credit by using the automated systems of the three credit bureaus at no charge.
Let’s address the first claim of people monitoring their own credit. This simply does not happen in reality. Credit monitoring services notify you quickly, typically by email or phone, when unusual activity occurs on your credit report. The monitoring is constant and alerts are sent to you fast, many times within 24 hours of a transaction. Obtaining a free copy of your credit report once a year is not credit monitoring and to check your credit report everyday would cost you an arm and a leg. Remember, only the first report is free. Credit monitoring services are valuable and cannot be compared with an individual checking his or her credit report from time to time.

The second claim, that anyone can place fraud alerts on their credit, is not realistic either. Fraud alerts stay in effect for 90 days and are designed to protect those who have already been victimized. Placing a fraud alert on your credit is not a substitute for credit monitoring. It is a temporary safeguard.

We also have to keep in mind that tapping into our credit is not the only reason criminals steel our identity. It is only part of the problem. So even if critics are convinced that we can handle the credit monitoring and repair ourselves, there are many other ways one’s identity can be used; To name a few, opening a bogus company, obtaining a driver’s license or having a medical procedure done. As a result you may have to go to court for violations you did not commit, receive medical bills for an illness or injury you never had, or have a warrant out for your arrest? The list goes on and on. In the forthcoming articles we will address the many ways criminals can use your identity.

In summary, identity theft protection is a valuable service that provides everyday peace of mind, even if nothing happens. In the unfortunate event of a security breach on your identity, you will be glad you had protection in place before the fact.

This service is very affordable, even for those on a tight budget. For the price of one lunch, you and your family can be protected each month. I see identity theft protection as an insurance against something that could happen to you. Just like car insurance or home owners insurance, I believe identity theft protection is just as important. Unfortunately, most people do not realize this until they are already victimized.

We have put together a series of informative articles on this subject to help you make an informed decision about protecting your identity. I firmly believe our services will offer peace of mind and value to you and your family. Please check back for Article #3 in this series which will be published January 4, 2009.

Best Regards,

Michael Ruglio
President
COPCIRCLE.COM

Note: Our identity theft services are for everyone. Special promotions and insentives exist for COPCIRCLE.COM members. Please inquire by contacting us at www.copcircle.com and click on the contact us link. Thank you.

Michael Ruglio is the author of this article. He can be reached at
mruglio@copcircle.com

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