Last reviewed: 1 October 2026
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Is paid identity theft protection worth it? What to check before you buy
Paid credit and identity monitoring mostly tells you about misuse after it happens; the Consumer Financial Protection Bureau (CFPB) says most services do not protect your information from being stolen, they alert you after it has been.[2] A security freeze at the three credit bureaus is free and generally prevents new credit from being opened in your name,[2][4] and you can request free credit reports to watch your files yourself.[2] Whether a paid plan adds enough on top of that depends on what it covers and what it cannot see. This page is a checklist, not a verdict on any product.
The short version
- Know which product you are looking at. Credit monitoring, identity monitoring, identity recovery services and identity theft insurance are four different things, often sold together.[1]
- Compare the free options first. A freeze and a fraud alert cost nothing, and the CFPB lists free weekly credit reports as an alternative to paid monitoring.[2]
- Ask what the plan will not alert you to. The Federal Trade Commission (FTC) says credit monitoring will not alert you when someone withdraws money from your bank account or files a tax return in your name to collect your refund.[1]
- Read the insurance terms. The FTC says identity theft insurance generally will not reimburse money scammers stole, and most policies will not pay a loss that is covered by homeowner's or renter's insurance.[1]
- Check any "free" offer. The CFPB says to look for hidden trial periods, fees, or cancellation requirements before accepting one.[2][3]
Four products, what each does, and what it will not
The FTC describes four services you might pay a company for, or get through a bank or credit union, a credit card provider, an employer's benefits program, or an insurance company.[1]
| Product | What the FTC says it may do | What the FTC says it will not do |
|---|---|---|
| Credit monitoring | Watches your credit reports at one, two, or all three bureaus. Usually tells you when a company checks your credit history, a new loan or card account appears, a creditor or debt collector says a payment is late, a bankruptcy appears in public records, someone files a lawsuit against you, your credit limit changes, or your name, address, or phone number changes.[1] | Alert you when someone withdraws money from your bank account or uses your Social Security number to file a tax return and collect your refund.[1] |
| Identity monitoring | Checks databases, including some that may not show up on your credit report. May tell you when your information shows up in a change of address request, court or arrest records, an order for new utility, cable, or wireless service, a payday loan application, a request to cash a check, social media, or websites identity thieves use to trade stolen information.[1] | Most will not alert you if someone uses your information to file a tax return and collect your refund, or to get Medicare, Medicaid, welfare, Social Security, or unemployment benefits.[1] |
| Identity recovery services | Give you access to counselors or case managers who may help write letters to creditors and debt collectors, place a credit freeze, and guide you through documents. Some deal with creditors for you if you formally grant them authority.[1] | The FTC notes you might be able to do some of what they offer yourself for little or no cost.[1] |
| Identity theft insurance | May cover out-of-pocket costs of reclaiming your identity, such as copying documents, postage, notarizing, lost wages, and legal fees.[1] | Generally will not reimburse money scammers stole or financial loss from the theft; most policies will not pay if a homeowner's or renter's policy covers the loss. Ask about the deductible.[1] |
What is already free
- Credit reports: the CFPB says you can request a free report from each nationwide credit reporting company once every week and use that to monitor your own files.[2] See free credit report scams and imposter sites for how to reach the real source.
- Security freeze: free at Equifax, Experian, and TransUnion. The FTC says nobody can open a new credit account in your name while it is in place, including you, it does not affect your credit score, anyone can place one for any reason, and it lasts until you lift it. You contact all three bureaus.[2][4] The mechanics are in credit freezes, locks, and fraud alerts.
- Fraud alert: an initial fraud alert lasts up to one year and is free. It does not stop a lender from opening credit, but it requires the lender to take certain steps to verify your identity first.[2][4]
- A recovery plan: if you think someone stole your identity, the FTC says to report it at IdentityTheft.gov and you will get a free personal recovery plan.[1] For removing fraudulent items from a credit report, see blocking identity theft items.
Because a freeze blocks new accounts while monitoring reports them afterward, the CFPB describes a freeze as protecting your data before harm happens, which monitoring does not do.[2]
Questions to ask a provider
The FTC suggests asking a credit monitoring service:[1]
- How often do you check credit reports for changes?
- Which of the three credit bureaus do you monitor?
- Is there a limit to how often I can review my credit reports?
- Will I be charged each time I review my credit reports?
- Are other services included, like access to my credit score?
For insurance, the FTC says to ask about the deductible and what is and is not covered.[1] Beyond that:
- What does it cost over a year? The CFPB says prices vary widely, from a few dollars a month to over $15 a month.[3]
- How does a trial end? For a "free" offer, check for hidden trial periods, fees, and cancellation requirements.[2][3]
- Has the company drawn complaints? The CFPB suggests checking with your local consumer protection agency and your State Attorney General's office.[2][3]
- What do you already have? You may already receive some of these services through a bank, card provider, employer, or insurer.[1]
What no plan on this list is built to catch
Tax-related and government-benefit identity theft sit outside what credit and most identity monitoring watch.[1] For the tax case, the IRS offers its own free tool; see tax identity theft and the IRS Identity Protection PIN.
A way to decide
- Place a freeze at all three bureaus and note where the PINs or logins are kept.[4]
- Decide whether you will check your free weekly reports yourself.[2]
- List what you already get through a bank, card, employer, or insurer.[1]
- If a paid plan still appeals, compare it against the questions above and the table, and read the cancellation terms before you enter a card number.[2][3]
Convenience, such as one dashboard for several bureaus or help with letters, is a legitimate reason to pay for something. It is a personal choice, and this page does not say which way to choose.
What this page does not cover
It does not rate, rank, or recommend any identity protection company or product, and it does not tell you whether a particular plan is a good value. For how the pieces work in more detail, see credit monitoring and identity theft protection services, explained. If you are choosing a company to hire for credit repair or debt relief, see how we check and the Register; those are different services with different rules.
When we will update this page
We revisit it when the FTC or the CFPB changes its guidance on monitoring, identity theft services, or credit freezes. Sources last read 1 October 2026.
What you can do next
- Find a company — see which specific US companies we checked and what we could verify.
- How we check — the rules and sources behind each result.
- More credit help guides
- Report an error on this page or in a result.