Identity theft and credit monitoring are two different but related concepts. The former involves the unauthorized use of a person’s personal information, such as a Social Security number or bank account details, to commit fraud. Credit monitoring is a service that provides consumers with alerts when their credit score and/or activity changes.
Although both identity theft protection and credit monitoring can help protect your financial health, there are important differences between them. In this blog post, we will discuss what these differences are and how they may affect you in terms of preventing identity theft and protecting your finances from fraudulent activities. So if you want to understand the differences between identity theft protection and credit monitoring, read on!
The Purpose of Identity Theft Protection vs. Credit Monitoring
Identity theft protection is an important step to take when it comes to securing your finances. This is because it involves the prevention of unauthorized use of personal information, such as Social Security numbers, credit card numbers, and other bank account details. And with advanced ID monitoring services, you may also receive alerts if anyone attempts to use your information for malicious purposes. Therefore, these services are amazing for those who are concerned about their digital security and want to remain informed of any suspicious activity. You will be notified when activities like new accounts being opened in your name occur, or if someone tries to access accounts you have with financial institutions.
On the other hand, credit monitoring allows you to keep track of any activity related to loans or credit cards that could potentially increase or decrease your score. By doing so, you can make decisions regarding your purchases and loan repayment quickly, as well as avoid any future financial difficulties due to having a poor credit score. Credit monitoring also helps detect any fraudulent activities such as unrecognized charges on credit cards or unauthorized changes on your accounts.
Coverage for Identity Theft Protection vs. Credit Monitoring
Identity theft protection typically includes features such as fraud alert notifications, identity restoration services, and customer service. Some companies may also offer additional services such as dark web scans and financial account activity alerts. By having these features in place, you can quickly spot any suspicious activities related to your personal information or accounts.
Credit monitoring is generally limited to tracking changes in your credit report through a single bureau or all three major bureaus. This means that while you can get an insight into your credit score movements and receive alerts when something unusual happens, it does not involve any proactive measures like identity theft protection does.
The Cost of Identity Theft Protection vs. Credit Monitoring
Identity theft protection services typically cost more than credit monitoring. This is because they offer additional features such as identity restoration and customer service, which could help make the process of restoring your financial health easier if it has already been compromised due to identity theft or fraud.
Credit monitoring services are generally less expensive since they only focus on tracking changes in your credit report and alerting you when something unusual happens. They are usually available as part of a larger financial package, such as an annual subscription to a credit-reporting agency’s website or app that can cost up to $20/per month.
Who Can Benefit from Identity Theft Protection vs. Credit Monitoring?
Anyone who wants to prevent identity theft or has already been a victim of it can benefit from identity theft protection services. These types of services are also beneficial if you have multiple bank accounts, credit cards, and loans that you would like to keep track of so that any fraudulent activity is quickly detected and prevented.
Those who want to keep track of their credit score and receive alerts when it changes could benefit from credit monitoring. This is because they can be aware of any hits to their credit score as well as any fraudulent activity that may occur on their accounts in a timely manner so that they can address the problem before it affects them too much. Additionally, individuals with poor or nonexistent credit scores might find these services helpful in understanding how certain activities affect their scores and being able to take measures to improve them.
Businesses, regardless of the type and size, must consider implementing both identity theft protection and credit monitoring services to protect their sensitive data as well as ensure any unauthorized activities are quickly spotted. Companies can also benefit from being proactive in avoiding identity theft or fraud by having measures in place that prevent it from occurring in the first place. Regularly educating employees on how they should handle sensitive data is a key part of this process.
In conclusion, both identity theft protection and credit monitoring can be beneficial for individuals and businesses alike for protecting themselves from potential financial losses due to identity theft and other fraudulent activities. Which type of service is most suitable for you will depend on the level of protection you need and the amount of money you are willing to spend. Ultimately, it is up to you to decide which option works best for your particular ne
