How Credit Monitoring Nabs Identity Theft Early

As technology evolves, fraudsters keep coming up with new ways to steal personal information from people including names, addresses, credit card details, Social Security numbers and even medical insurance numbers. In many cases, victims don’t realize they’ve been targeted for months or even years. Some victims are in the dark until they’re contacted by debt collection agencies. Credit monitoring is one effective way to detect identity theft early. Learn more about credit monitoring and its role in uncovering identity theft below.

What is Credit Monitoring?

Credit monitoring services inform consumers of any unusual changes to their credit reports. Credit monitoring service agencies track their clients’ credit reports regularly and notify clients in case of any new activity, such as:

• Hard credit inquiries
• New accounts
• Bankruptcy (newly listed)
• Collections accounts (newly listed)
• Balance changes
• Changes in account status, such as delinquent accounts

They may offer more alerts depending on the credit bureau/report in question.

How Does Credit Monitoring Help with Identity Theft?

A credit monitoring service can quickly help alert a person to potentially fraudulent activity on their account. Once the person has been notified of suspicious account activity, they can immediately block their credit card and inform their bank of the situation. With credit monitoring, they can also see if a credit card or loan has been taken out in their name and then put a security freeze on their credit report. Credit monitoring helps the victim take prompt action to minimize the escalation of fraud. However, not all credit monitoring services can alert the user to every type of fraud like misuse of existing accounts or tax fraud. It also can’t prevent data breaches.

Several different companies offer paid credit monitoring services, but it’s a good idea to choose an option that includes other benefits like:

• Access to credit reports
• Access to credit scores
• Alerts/updates when there are changes to the consumer’s credit file
• Identity monitoring that lets consumers know if their personal information is being bought/sold on the dark web

Consumers who find out that their information is available online can investigate long-term credit protection measures like credit freezes or fraud alerts.

The Importance of Monitoring Your Own Credit

Even if you are using a credit monitoring service, be sure to periodically check your credit report for any inaccuracies. Credit monitoring agencies aren’t able to monitor all data, so the responsibility falls on you to check that details including your name, address, active accounts, balances, and missed payments are valid. If you do find any errors or inaccuracies contact your credit bureau. It should be emphasized that credit monitoring services can’t prevent identity theft or fraud, but they can alert you early to the issue so you can act faster.

Disclaimer: This content is sponsored by myFICO and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about myFICO’s services, including credit scores and monitoring tools, please visit the myFICO website or reach out to a myFICO representative.

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