Identity theft is a global problem that becomes increasingly more sophisticated as technology paves the way for new types of fraud. This type of theft takes place when someone uses another person’s personal information to open credit accounts, file a tax return or assume someone’s identity in its entirety. The underlying goal of identity theft is fraud and robbery, although the amount of each loss is measured in both money spent and time.
According to a 2020 Identity Fraud Study from Javelin Research, fraud victims lost a total of $16.9 billion in 2019, with the most prevalent problems being existing card account fraud and account takeover. Mobile phone takeovers are also on the rise, and more and more identity theft victims are left covering fraud-related expenses out of their own pockets.
With these statistics in mind, it’s no wonder many consumers choose to pay for identity theft protection services. Companies that offer this protection keep an eye on your credit reports to check for suspicious activity, and they may even monitor the dark web to detect the use of your Social Security number and other information. Identity theft companies will notify you if someone uses your personal details to open an account in your name, and most offer a high level of insurance that will cover the cost of recovering your identity if you’re the victim of fraud.
Forbes Advisor compared the top identity theft companies to come up with this ranking, and we found that many companies offer high-quality services for a reasonable price. If you’re worried about protecting your identity, keep reading to see how these companies stack up.
In This Post
- Best Identity Theft Protection Companies of 2020
- Identity Guard
- LifeLock
- IdentityForce
- ID Watchdog
- Experian Identity Theft Protection
- IDShield
- FICO Identity Ultimate 3B
- Identity Defense
- IdentityProtect
- PrivacyGuard
- How to Pick an Identity Theft Monitoring Service
- Methodology
- Frequently Asked Questions (FAQs)
- Next Up in Personal Finance
Best Identity Theft Protection Companies of 2020
Identity Guard
LifeLock
IdentityForce
ID Watchdog
Experian Identity Theft Protection
IDShield
FICO Identity Ultimate 3B
Identity Defense
IdentityProtect
PrivacyGuard
How to Pick an Identity Theft Monitoring Service
It’s easy to become overwhelmed with identity theft protection options, mostly because the companies that work in this niche all provide the same general services. However, there are always features that stand out among different ID theft plans, so it’s crucial to look them over to see which benefits you need the most.
If you’re struggling to determine which ID theft protection provider to trust with your identity, these tips can help:
- Look for plans with identity theft insurance. Identity theft insurance is a final stopgap that can protect you against financial losses if you’re a victim of identity theft. With that in mind, we only selected companies that provide ID theft insurance for our ranking. Some offer lower levels of coverage, so make sure any plan you’re considering has enough identity theft insurance to make you feel comfortable. The gold standard is $1 million in insurance protection per plan.
- Check for three-bureau credit monitoring. Also check for monitoring of all three credit bureaus, and take note of the fact that basic plans may only include one bureau. Since fraud may not show up on all of your credit reports right away, having a plan that monitors all three of your credit reports is ideal.
- Decide if you need an individual plan or a family plan that provides protection for kids. Some providers offer family plans with special features to protect children’s identities, while others do not. If you have children, you’ll want to consider whether to include them in your identity theft protection plan.
- Compare pricing and look for discounts if you pay once per year. Compare pricing and make sure any plan you’re considering is affordable on a monthly basis. Also, check for discounts for autopay or annual payments. Many providers do offer some sort of discount if you pay for the first year up front.
- Consider companies that offer a free trial. If you still can’t decide, try out a provider that offers a free trial. This will give you some time to try out the features of a plan to see if the monthly cost is worth it. If you decide not to move forward with a paid identity theft protection plan before the free trial is up, you can cancel.
Methodology
Forbes Advisor compared all the top identity theft companies on the market today in order to find the best options for the largest number of consumers. We considered the monthly cost of each company’s plans, looking for affordability and value first and foremost. We also looked at the inclusions of each plan, such as credit monitoring from all three bureaus and dark web monitoring. We gave precedence to providers who offer individual identity theft plans and plans for couples, as well as plans for the entire family. Finally, we only included ID theft companies that include an ample amount of ID theft insurance in their most comprehensive plans.
Frequently Asked Questions (FAQs)
What are the most common signs of identity theft?
According to the Consumer Financial Protection Bureau (CFPB), some of the most common signs of identity theft include not getting your bills in the mail, seeing withdrawals from your bank account you cannot explain and debt collectors calling you about debts that are not yours.
Do identity theft companies help me monitor my credit score?
Some identity theft companies do include credit monitoring and credit scores in their service plans, although you should check to make sure. Also note that some providers only monitor one of the credit bureaus instead of all three, which is less than ideal.
Why do I want identity theft insurance?
With identity theft insurance included in your plan, you will be reimbursed for financial losses up to your coverage limits if you are a victim of identity theft. Many ID theft plans offer up to $1 million in coverage for reimbursement of funds due to identity theft.
What steps can I take to protect my identity online?
There are a number of steps you can take to safeguard your identity when you use the internet. Some of the best steps include updating your software frequently, never giving out your personal information, creating unique passwords no one can guess and setting up multi-factor authentication when you can.
What should I do if my identity is stolen?
If your identity is stolen, you should head to the identitytheft.gov website right away. This website will ask you some basic information and help craft a recovery plan with your next best steps. Based on your situation, your next moves could include calling companies where the fraud occurred, reporting the identity theft to the FTC and filing a police report. In many cases, your identity theft company will help you with each of these steps.