Despite the high-profile nature of these breaches, there are some common gaps in public knowledge regarding how to mitigate risk and stay protected. 

Here are some important facts that can help you stay safe and informed.

2.  The "$1 million" of identity theft insurance in many monitoring plans typically does not cover unauthorized charges.

It's understandable for people to assume that identity theft insurance protects them against expenses racked up in their name, but in reality, if someone does manage to buy a Humvee or beach condo using your information, those expenses are usually not covered.  What typically is covered is the cost associated with restoring your identity, including legal fees, notary fees, and possibly loss of wages due to time away from work.
 
Tip:  Because the time spent correcting damage from identity theft can be one of its most costly aspects (seeing as you are not very likely to be on the hook for the Humvee when all is said and done), it's important to choose a monitoring company that provides full-service identity restoration.

Read the contract description carefully.  Some companies only provide guidance that helps you do it yourself, while others such as Identity Force will make calls, contact agencies, and fill out the paperwork for you.  This can prove to be an extremely valuable option.

Here's an excellent guide to Identity Theft Services, including what features to look for (Item 6 on the list):

Guide to Identity Theft Services

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3.  Debit cards are far riskier than credit cards.

Clever things criminals do:

1. They steal the identities of children.

Child identity theft is a serious and quickly growing problem. Most parents never think to check their child's credit report (if their child even has one), which means that this kind of crime can go undetected for years.

Tip:  Some credit monitoring services offer coverage for children.  Examples include All Clear ID ChildScan , LifeLock Junior, and IdentityGuard KID Sure.  (Yes, it's sad that these even have to exist, but at least they offer parents some options.)  

2. They pay minimum balances on fraudulent accounts.  

Imagine finding out that a credit card had been fraudulently opened in your name, but that the person responsible was faithfully making the minimum payments!  They do this so you don't get calls from collection companies that would alert you to the existence of the account. 

Reminder: A credit monitoring service would let you know that a new account had been opened and would show you the activity.  A security freeze would prevent the new account from being created in the first place.

3. They steal health insurance benefits.

Medical identity theft, which involves fraudsters gaining access to medical treatment and insurance benefits, is on the rise, with 1.85 million victims in 2012, according to AllClear ID.

Helpful resources:

Truly free credit monitoring services and tools:

CreditSesame
(Checks Experian credit score only.)  Also offers reasonably-priced paid services that include full-service identity restoration. 

CreditKarma  

(Checks TransUnion credit score only.)

Both of these websites offer a huge amount of information and tools at no charge. 

Tips and Advice:  

Privacy Rights Clearinghouse Identity Theft Resources 

Pretty much everything you could ever want to know about how to prevent and/or handle identity theft, and it's a great resource for other issues as well. 

Note: We are not endorsing any particular paid resource.  Please use your best judgment when evaluating services. Your feedback is welcomed. 

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Dennis and Jane Guertin
Broker/Owner, REALTOR®, CRS, SFR, ABR, CBR, e-PRO, GRI
Guertin Family Realty

Jane@GuertinFamilyRealty.com
952-442-1300
www.GuertinFamilyRealty.com