Why Wouldn't You Pay for an ID Theft Program?

June 2007
By Mark Pribish, Director of Identity Theft Management Services Merchants Information Solutions, Inc.

There have been some recent news articles questioning why an individual consumer would purchase an identity theft (ID Theft) product or service.

This debate has focused mostly on one point, why would anyone pay for something that you can do for yourself. Depending on the type of ID Theft program being purchased, the question is fair and valid – as not all ID Theft programs are created equal.

However, if a consumer has an ID theft program that will save them time and money -- while being provided a valuable service by a professionally trained individual, then such a service is not much different than the following examples of what consumers pay for on a regular basis but can easily do themselves:

1. Car Wash


2. Laundry/Dry Cleaners


3. Lawn Mowing Service/Landscaping


4. Health Club/Personal Trainer


5. Pool Service


6. Shoe Shine


7. Fast Food Restaurants/Prepared Food at Grocery Store


8. Nail Salons for Manicures/Pedicures

Most people can wash their cars and do all the services listed above for either free or less money! However, the motivation of the consumer in paying for these services is to save time and money while having these services done better and quicker by a reliable professional service provider.

So the question should not be whether a consumer should purchase an identity theft program. The question should be does the consumer value a service that is proactive and responsive in helping protect one’s personal information and restore one’s personal identity?

An identity theft program can protect and restore a consumer’s personal information by including one or more of the following:

1. Managed Recovery/Resolution


2. Credit Report/Score and Daily Monitoring/Alerts


3. Expense Reimbursement


4. Education

Identity theft programs can be offered through your credit card company, financial institution, association membership, employer group as an employee benefit, homeowners or rental insurance policy, or even as a stand alone identity theft membership program.

Those who question the value of an identity theft program believe that every individual is capable of recovering their own identity. The facts are that not everybody has the time, knowledge, patience, and in the case of complicated ID Theft events, the money to support the recovery of one’s identity.

A consumer should ask the following questions if an identity theft program is being offered so that the consumer can make an informed choice:

1. Does the ID Theft program include family fraud?


2. Does it include unknown, pre-existing ID Theft events/fraud?


3. Does it include self-employed individuals?


4. Does it include benefits for children from date of birth to early adulthood?


5. Does it include children attending college, living away from home whose primary address is the parents address?


6. Does it include non-financial ID Theft events?


7. If the program includes expense reimbursement – what is the coverage amount and does it exclude any of the above?

Most people do not know if they will have the time – especially during the work day – to make contact and complete the proper follow-up with numerous companies and organizations including the credit bureaus, Division of Motor Vehicles, Social Security Administration, Federal Trade Commission, Medical Information Bureau, along with other state and federal agencies, financial institutions, credit card companies, insurance companies, utility providers, phone companies, past and present employers, etc.

Statistics indicate the average person will spend more than 81 hours (mostly during the work day) recovering from an identity theft event and that 33 percent cannot resolve their case after one year.

In summary, consumers should consider the value of an identity theft program that is proactive and responsive in protecting one’s sensitive personal information – especially when a complicated identity theft event could impact your credit score, insurance rates and/or employment application.