Are ID theft monitoring services worth it?
Everyone is afraid of identity theft. It seems as if every couple of days there are new reports of Social Security numbers and other sensitive information stolen, lost or leaked.
Just last week Countrywide Financial, which is now owned by Bank of America, said it would provide two years of free credit monitoring for customers whose confidential data was allegedly stolen by a former employee. But should you spend money to buy services that promise to protect you from identity theft?
As in so many matters financial, it depends: on whether you don't mind paying for something you could do yourself for free, and on whether the company offering the protection can really deliver on its promises. Most identity theft protection services watch out for only one type of fraud — in which hackers or other thieves take out new credit in your name. But there are seven types of identity fraud, said Avivah Litan, vice president and analyst at Gartner Research in Stamford, Conn.
