Identity theft is big business — and not just for thieves. With more than 10 million Americans affected annually, companies are marketing insurance and credit-monitoring services designed to help potential victims maintain the good credit that’s key to securing loans, opening charge accounts, and even passing employers’ background checks. Buying such products might make sense if you worry about becoming a victim and think you’ll want help with the cleanup. But some can be expensive. So before putting money down, weigh the costs against the potential benefits.
Although identity-theft victims are usually not held liable for fraudulent credit-card charges, they can still pay a big price. On average, the victims of the most serious form of ID theft — which occurs when thieves run up debts in charge accounts they open in your name — spend $1,200 and 60 hours cleaning up their credit, the Federal Trade Commission reports. Those who must take off time from work to file police reports or make contact with creditors have even more to lose — as much as $16,000 in wages, according to the nonprofit Identity Theft Resource Center in San Diego.
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