Best Identity Theft Protection Services

Your identity is composed of a range of factors, including credit use, financial history, medical history and more. Identity theft protection companies typically monitor activity on your credit cards and other personal accounts to determine if your personal information has been compromised.

Some identity protection companies employ preventive measures to keep your accounts safe. Many can also help to repair and resolve problems caused by identity theft.

Types of identity theft

Most cases of identity theft are related to financial information. Some of the most common forms of identity theft are:

• Credit card fraud
• Other identity theft, such as theft related to social media, online shopping, email, medical services or insurance
• Bank fraud
• Loan or lease fraud
• Employment or tax fraud

ID theft vs. ID fraud

Identity theft happens when an individual obtains someone else's personal or financial information without their permission. Identity theft leads to identity fraud when a criminal uses an individual's personal or financial information to commit fraud.

Within the most common identity theft categories, there are countless ways thieves can access your information and use it illegally.

It’s crucial to be careful with your sensitive information. While even the most cautious can still find themselves falling victim to identity thieves, every effort counts.

Some of the most important steps to keeping your identity safe include the following:

• Monitor your accounts for unusual activity. Regularly monitor your bank and credit statements for unusual activity, and report anything strange you notice.
• Keep important personal documents secure. Store paper documents in a safe place, and don’t share sensitive information online unless you’re sure the website or entity you’re working with is trustworthy and secure.
• Check business safety practices. Make sure the businesses and organizations you deal with use systems designed to keep user data safe. Talk with your bank about their fraud detection and prevention services.
• Use two-factor authentication and complex passwords. Use two-factor authentication and strong passwords for online accounts to add extra protection. Also, don’t use the same password across accounts.
• Install antivirus software. Install antivirus and malware detection, and update your devices' operating systems as needed.
• Shred sensitive documents. Shred sensitive documents, like bank statements and checks, before throwing them away.

» MORE: How to check for identity theft

Identity theft protection companies monitor your credit cards, bank accounts, Social Security information and other sensitive material. They alert you if your personal information is used in a way that seems suspicious or unusual compared with your usual activity. For example, they’ll notify you if someone uses your Social Security number to apply for a loan.

The best identity protection companies use preventive strategies, such as reducing customers’ public exposure and monitoring black market websites for customers’ information, as well as recovery assistance.

Identity theft prevention vs. identity theft recovery services

Identity theft prevention companies alert you to potential fraud on credit reports and remove your name from various mailing lists to minimize the chance of identity theft issues.

However, if your identity has already been stolen, you’ll need help fixing the damage. Many identity theft recovery companies offer personal assistance to help you reclaim your identity and repair any damage done to it.

It monitors your information

Full-service identity theft companies offer a few different types of monitoring services:

• Credit monitoring: Credit monitoring services track a person's credit profile so any suspicious activity doesn’t go undetected.
• Social Security monitoring: Some identity theft protection companies monitor the use of a person's Social Security number and notify users if anyone else attempts to use their number.
• Comprehensive monitoring: The best identity theft protection companies monitor your credit, Social Security number, finances and medical history.

It provides regular reports

Identity theft protection companies typically send reports of your financial situation and identity history. This way, even if the company doesn’t notice something unusual in your report, you should be able to.

• Individual bureau credit reports: You can get a report from one specific credit bureau with information about your credit score, individual credit accounts and credit usage over time.
• Comprehensive credit reports: These provide full reports from all three credit bureaus (Experian, TransUnion and Equifax) as well as other financial information.
• Online scan reports: Some identity theft protection companies review a number of online resources to monitor your exposure, and then they compile and share any notable information for you.

Insurance can compensate you if necessary

Identity theft insurance can compensate you in the event your identity is stolen. This type of insurance typically cancels and replaces stolen credit or debit cards and sometimes includes reimbursement for stolen cash.

Companies that offer full identity theft insurance may reimburse customers for the entire cost of repairing their identity. This may include the following:

• Cost of document replacement
• Case manager fees
• Legal fees
• Lost wages
• Bank fees
• Fraud alert fees

Make sure you’re aware of any limits on your reimbursements. Some companies pay only filing fees or have a cap on lost wages insurance.

» MORE: Best credit monitoring services

With a growing number of identity theft protection services on the market, it's important to know what features and factors to consider when selecting one. Here’s what to keep in mind:

• Understand your needs: Are you looking for basic credit monitoring, or do you want comprehensive protection including Social Security number and medical data monitoring? Some services also offer plans for families, which may be useful if you have children.
• Review insurance coverage: Check what the identity theft insurance covers. Look for services that reimburse a broad range of costs, including lost wages, legal fees and document replacement.
• Evaluate monitoring capabilities: High-quality services offer multiple types of monitoring, such as dark web surveillance, social media monitoring and public records scanning.
• Compare pricing and plan options: Understand what’s included at each tier. Some basic plans may omit key features like credit monitoring at all three bureaus or high insurance limits.
• Look at customer reviews and ratings: Reviews can reveal real-world user experiences and satisfaction with customer service, ease of use and responsiveness during a crisis.
• Check for recovery support: The best services provide full recovery assistance, including a dedicated case manager to guide you through reclaiming your identity.

If you’re the victim of identity theft, take the following steps:

1. Report it to the appropriate entities

If your identity is stolen, report it on the FTC’s IdentityTheft.gov website. In some cases, it also makes sense to report the theft to law enforcement. If you decide to report it to the police, the FTC recommends filing an identity theft report first and including it with your police report.

If you’re dealing with a cybercrime incident, report it to the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center.

2. Check and freeze your accounts

Contact your bank and credit card companies to lock your accounts. Consider freezing your credit with all three credit bureaus.

3. Put a fraud alert on your credit report

Place an initial 90-day or one-year fraud alert on your credit report. This requires any new creditors to make sure the person requesting credit is, in fact, you. If you file a police report or FTC identity theft report, consider placing an extended seven-year fraud alert on your credit.

4. File a claim if you have identity theft insurance

If you have identity theft insurance, make a claim with your provider. Document everything you can as proof that you’re not responsible for any fraudulent activity.

Why is it important to report identity theft?

Reporting your particular instance helps the FTC to catch scammers. It also helps the FTC understand whom criminals are targeting and how, and it helps prevent would-be victims from experiencing the same pain.

» MORE: Identity theft statistics