Data breaches are an increasingly prevalent problem for consumers, exposing sensitive information regarding their financial, healthcare, and other personal accounts to use by bad actors. In response, many companies and organizations targeted by data thieves offer to pay for their customers and clients to have access to credit monitoring services.
Affected companies treat these offers as signals that they’re trying to do right by victims of data theft. Unfortunately, these credit monitoring services don’t always succeed in protecting individuals whose data was exposed through the actions of identity thieves.
The Shortcomings of Credit Monitoring Services
Credit monitoring services alert consumers to changes on their credit reports, such as when a new account is opened in their name, an address is changed on an account, or a party (such as a lender) performs a credit check. The intent is to notify individuals quickly so they can act before further damage occurs. These services may also provide access to credit scores, fraud alerts, and assistance in disputing inaccurate entries.
On the surface, this seems like an effective way to detect potential identity theft. However, in practice, the significant limitations of these services often leave victims unprotected. Credit monitoring doesn’t actually prevent identity theft – it only reports suspicious activity after it happens. By the time a consumer receives an alert, a thief may have already opened new accounts, taken out loans, or incurred debts in the victim’s name. Many monitoring programs also only track one or two of the three major credit bureaus (Equifax, Experian, and TransUnion). It could be months before a victim notices fraudulent activity reported to an unmonitored bureau.
These services also don’t monitor non-credit-related fraud. Identity thieves can use stolen information for online shopping, tax refunds, medical treatment, or government benefits, and credit monitoring won’t detect it. Even when victims receive alerts, they frequently face delays or limited assistance with resolving the damage.
How to Monitor Your Own Credit
Given the limitations of paid credit monitoring services, consider taking steps to track your own credit activity. Doing so can help spot problems early and offers greater control and awareness of your financial profile.
Start by reviewing your credit reports from the three major bureaus at least once a year. Federal law entitles you to free annual reports, and checking them regularly can help identify unfamiliar accounts or incorrect information. Set up account alerts with your bank and credit card providers to receive notifications of new transactions or changes to your contact information. Use strong, unique passwords and enable two-factor authentication wherever possible to reduce unauthorized access. Freezing your credit when you’re not actively seeking new loans or credit cards can provide additional peace of mind.
Watch for These Signs of Compromised or Stolen Identity
Identity theft can occur without immediate warning. Careful monitoring can help you recognize these early signs of identity theft, limit the damage, and speed up your financial recovery efforts:
- Unexplained withdrawals from your bank account
- Unknown charges or purchases appearing on credit card statements
- New or unfamiliar accounts listed on your credit report
- Missing bills or account statements that previously arrived regularly
- Debt collection calls or letters about accounts you never opened
- Denials of credit or loans you didn’t apply for
- Notification that your tax return has already been filed or your refund has already been issued
- Medical bills or insurance statements for services you didn’t receive
- Unexpected changes to login credentials or security settings
- Emails or calls requesting confirmation of personal or financial information
Contact a Florida Consumer Protection Attorney Today
Have you experienced identity theft-related financial losses stemming from a data breach? The Florida consumer protection attorneys at Lehrman Law are ready to help you fight back. We’ll investigate your case, dispute fraudulent accounts and transactions, and work with agencies and institutions to restore your financial security. Contact us 24/7 to get started with a consultation.