Identity Theft Protection: Who Needs Protection From Whom?

If you've ever received one of those slick identity theft protection “checks” from your credit card company, you've probably wondered who you actually need protection from – the credit card companies or the identity thieves? You may have even cashed one – thinking it was a rewards check – only to find out that you are now enrolled in a $25 per month fraud and identity theft protection plan.

All cynicism aside, however, identity theft is a serious problem that actually does affect millions of people in the United States alone each year. In fact, it is estimated that number affected in 2005 was over nine million. Not all of these cases are serious, however; in some cases, the identity is taken as part of a database, but isn't actually ever used fraudulently to make purchases.

So is it worth enrolling in that identity theft protection plan for $25 each month? The answer is usually no, surprisingly. While a credit card company might be able to provide you with additional security by double checking transactions, they can also hinder your ability to spend constantly cutting off your line of credit whenever they deem something to be suspicious. This could be a significant problem if you travel abroad, as credit card companies sometimes register these transactions as potentially fraudulent – which will prevent you from spending and leave you stranded.

Rather than purchasing protection, consider creating your own identity theft protection system by taking careful measures to prevent your information from falling into the wrong hands. One big step you can take in your identity theft protection system is to only submit your information to secure sites when you spend over the Internet. You can determine whether or not a site is secure by looking for the closed lock symbol in the bottom right-hand corner.

And there you have it: protect yourself from the credit card companies and use your own system for identity theft protection instead – preferably one that doesn't involve cashing dubious checks with secret strings attached.