Should You Pay for Identity-Theft Protection? Ask Yourself These Questions First.

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Should You Pay for Identity-Theft Protection? Ask Yourself These Questions First.
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While consumers can freeze their credit or their children’s credit on their own, some are willing to pay for higher levels of protection

Some of these providers also have free offerings, so be sure to research the differences in the plans.Generally, these services monitor the use of your personal information from a variety of sources. This could include one or more of the three major credit bureaus, your bank accounts or Social Security number, social media, court records and the dark web—information that is not accessible by normal internet browsers.

A number of companies also offer breach-related restorative services, to help if a consumer’s identity is compromised, and some also offer insurance for stolen funds. Some services have plans that cover children, which can be important given that child identity fraud costs U.S. families close to $1 billion a year, according to aCosts can vary, but generally consumers could expect to pay about $7 to $35 a month, depending on the provider and the features of the plan chosen.

Consumers thinking about a paid service should consider cost, the provider’s reputation, how many people are included in a plan and whether family plans, if desired, are available. Consumers thinking about a paid service should consider cost, the provider’s reputation, how many people are included in a plan and whether family plans, if desired, are available. And, of course, how the service differs from free offerings that may be available.

Be sure to compare the scope of information being monitored.

Also be sure to read the terms of service carefully so you understand what you’re signing up for, as well as the provider’s cancellation policies and its policies with respect to mandatory arbitration in the event of a dispute, says Martin Lynch, president of the Financial Counseling Association of America, a nonprofit that offers free or low-cost counseling to consumers.Nothing’s guaranteed. But paid services can help you identify issues quickly, before they spiral out of control.

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