Is Identity Theft Protection Worth It?

Identity theft protection can be complimentary with some financial products, but purchasing it separately can cost around $30 or more per month. So, is it worth the cost? We break down what it offers and some alternative methods you can use to protect yourself.

What is identity theft protection?

Identity protection is designed to help you monitor, detect and respond to suspicious activity involving your personal information.

It alerts you if your Social Security number (SSN), bank accounts or other sensitive details are being misused. Many identity theft services also have recovery services and identity theft insurance to cover costs if your identity is stolen.

What you could get with identity theft protection
Many popular identity theft protection services offer plans for different situations, such as plans for individuals, families with children or specialized plans for seniors.

The more people you add to an identity theft protection plan, the more costly it’s likely to be. However, family plans can offer savings over individual plans if you have multiple people to insure.

While exact services and products vary depending on where you buy identity theft protection, these are the typical offerings you can expect:

Is identity theft protection worth it?

Monetarily speaking, the cost of identity theft protection could definitely be worth it if you have a lot of assets and a good credit score you want to protect. Most identity theft companies charge anywhere from $10 to $30 per month. So, while that can add up, the price could be worth avoiding the headache and loss that comes with identity theft.

American adults experienced a total loss of $43 billion to identity fraud in 2023, and $23 billion of that was traditional identity fraud, as reported by the AARP.

Traditional identity theft involves taking your personal information, such as your SSN, to apply for loans or credit cards in your name. Seniors are heavily targeted for identity theft. The annual amount lost to financial exploitation of adults 60 and older is estimated to be $60 billion, according to the Federal Trade Commission.

Identity theft can hurt more than your wallet

Aside from the risk of scammers taking your hard-earned money, identity theft can steal your time and ruin your credit score. If you’re a victim of identity theft, you’ll likely have to change your financial account usernames and passcodes, alert your bank to cancel existing debit and credit cards and much more.

For example, suppose someone uses your identity to apply for multiple credit cards in your name. In that case, you might have to spend hours contacting various credit bureaus, creditors and companies to report the identity theft and get those accounts canceled. Things can get even worse if a scammer doesn’t pay back those fraudulent accounts, furthering the damage to your credit score.

Compare top identity theft insurance options

Here are a few top identity theft companies, with their offerings and prices.

Greenlight

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One of the more ideal and all-encompassing options for families, Greenlight offers identity theft protection services powered by the credit bureau Experian. Greenlight offers prepaid debit cards for kids with strong parental controls that can also be issued for elderly parents, since there are no age restrictions. There are three plan options with differing costs, ranging from $5.99 to $14.98 per month, each offering up to five debit cards. The Greenlight Infinity plan has identity theft protection services included, such as security alerts, dark web monitoring and identity theft restoration services.

Greenlight is also working on a new product called Family Shield, currently with a waitlist. It's designed for seniors and their caregivers and will come with up to $1 million in identity theft insurance, up to $100K of deceptive transfer coverage and educational resources to protect yourself and your family members against identity theft.

Fee	From $5.99 per month

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  Annual Percentage Yield (APY)	5.00% on balances of $0 to $5,000
  Fee	From $5.99 per month
  ATM transaction fee	$0

Fee	From $5.99 per month

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LifeLock

One of the most well-known identity theft protection companies, LifeLock offers various services and plans for individuals and families. Just to name a few features, it has credit monitoring, identity alerts, SSN monitoring, bank account alerts and at least $1 million in identity theft insurance, depending on your plan.

LifeLock pricing starts at $11.99 per month for individuals. For two adults, pricing starts at $12.49 per month, and a family plan with two adults and up to five kids starts at $18.49 per month. But if you want all the bells and whistles and higher identity theft insurance, plan on paying much more per month.

Fee	From $11.99 per month
Credit Bureaus	Equifax, Experian, TransUnion

• More details

  Annual Percentage Yield (APY)	N/A
  Fee	From $11.99 per month

Fee	From $11.99 per month
Credit Bureaus	Equifax, Experian, TransUnion

myFICO

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The creators of the FICO credit scoring models, myFICO is the consumer-facing division of the company. The myFICO account offers credit report monitoring and alerts to keep a watchful eye on your identity. There's a free plan and three paid plans.

The Free Plan doesn't offer much in the way of real identity theft monitoring, but with the membership, you can view your FICO scores and credit reports, which could help you spot signs of identity theft on your own. The Basic premium plan starts at $19.95 per month and offers up to $1 million in identity theft insurance, credit and score monitoring, FICO score viewing for various loan types and 24/7 identity restoration services.

Fee	From $0 per month
Credit Bureaus	Equifax, Experian, TransUnion

• More details

  Annual Percentage Yield (APY)	N/A
  Fee	From $0 per month

Fee	From $0 per month
Credit Bureaus	Equifax, Experian, TransUnion

Read review

Can I get identity theft protection for free?

Yes, there are a few ways to get some identity theft protection at no cost. Some free identity theft options and measures you can take yourself include:

• Credit monitoring. Some apps like Credit Karma or credit bureaus like Experian can offer some identity protection, including email or text alerts if there are changes to your credit reports.
• Credit cards. Many credit card companies include identity protection or fraud alerts as part of their customer benefits. Additionally, card issuers like Visa and Mastercard come with zero liability policies, promising they won’t hold you responsible for unauthorized charges on your account.
• Freeze your credit. You can freeze your credit reports with all three major credit bureaus online for free if you believe someone has stolen your identity. With your reports frozen, you and anyone else can’t apply for new credit using your information.
• Password prevention. It’s common for people to use the same password for most things — emails, social media, bank accounts and so on. But if that one password gets stolen, all your accounts could be at risk. Be sure to use different passwords across your accounts, or opt for a password manager such as Dashlane, Bitwarden or Google’s own password manager to keep things straight.

Bottom line

Identity theft protection can make a lot of sense if you have multiple accounts, use the same password for multiple financial accounts, have a lot of assets or care for seniors who may be more at risk of being taken advantage of financially.

Overall, identity theft is a big pain. So, while most identity theft protection services aren’t free, the cost of protecting your money, identity, family and credit score could be well worth it.

Frequently asked questions

What is dark web monitoring?

The “dark web” is a hidden part of the internet that you can’t access with traditional search engines like Google. While not everything on the dark web is illegal, it’s often where stolen personal data like SSNs, bank account information and passwords are bought and sold.

This is where dark web monitoring can be helpful — this service can scan the dark web for your personal information. If your data shows up, the monitoring service can alert you to take action, such as freezing your accounts and credit reports or changing your passwords and usernames to stop theft before it happens.

Can I request my own credit reports?

Yes, and in fact, you’re entitled to free copies of your credit reports thanks to the Fair Credit Reporting Act. You can visit any of the three major credit reporting bureaus online and request copies of your credit reports, or visit the official AnnualCreditReport.com site. Before the Covid-19 pandemic, you could get free copies once every 12 months, but now you can request weekly copies of your credit reports at no cost.

And don’t worry — viewing your own credit reports does not harm your credit score. Read more about common credit score myths.

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Bethany Hickey

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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