8 Reasons Why It's Important To Have Identity Theft Protection

What Does Identity Theft Protection Do?

Identity theft protection providers make bold promises about how they can safeguard you against identity theft and fraud. But many struggle to keep up with modern attacks, such as data breaches and AI-powered scams. 

That's because many services only focus on fraud alerts and recovery, with features such as:

• Credit report monitoring
• Identity monitoring and Dark Web scans
• Credit and identity fraud alerts
• Identity restoration support
• Identity theft insurance coverage

While these are important features, there's a clear problem: users are only alerted after they become victims of identity theft. 

The best protection plans proactively limit your exposure to scams, fraud, and identity theft. While no service can guarantee complete immunity against all types of identity theft, an effective plan can reduce your risk.

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The 8 Biggest Benefits of Having Identity Theft Protection Today

Every identity theft protection service is different. But the best ones provide a combination of proactive protection, reliable support, and fast alerts.

Here are some of the key benefits you can expect from a top provider, such as Aura.

1. Continuous account and personal data monitoring

One of the biggest advantages of identity theft protection is having another set of eyes watching over your sensitive information and accounts — especially your financial ones.   

According to the Federal Trade Commission (FTC), the most common types of identity theft are all financial crimes. This includes scammers using stolen information to open new accounts, credit cards, and loans in their victims’ names [*]. 

Identity theft protection services like Aura monitor your bank and credit accounts, passwords, and personal information to warn you of suspicious activity. For example, Aura’s “watchlist” includes over 130 pieces of personally identifiable information (PII) — including your credit and debit card numbers, bank account details, driver’s license, passport, and more.  

📚 Related: Is Identity Theft Protection Really Worth It? Here’s How To Know →

2. Data breach and Dark Web alerts

This year alone, massive data breaches at National Public Data (NPD), Ticketmaster, AT&T and others have leaked billions of sensitive records — including nearly every American’s Social Security number (SSN). 

Leaked data almost always ends up for sale on the Dark Web, where scammers use it to hack into victims’ accounts or target them with scams and fraud. 

By law, breached companies must inform everyone who has been affected by the breach — but these alerts often come too late. ID theft protection services provide much faster account breach notifications and data breach alerts — telling you what information was leaked and helping you to secure your accounts and identity before scammers can use your leaked data against you.

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3. Removing your personal information from data broker lists

Data brokers scrape public records, websites, and social media to build files on nearly every American — and then sell these files to marketers, government agencies, and even scammers. By some accounts, major data brokers, such as Acxiom, average more than 3,000 data points per person [*].

While you can request that data brokers remove your information, there are hundreds of them in the United States alone — and they’re rarely easy to deal with. 

Modern identity theft protection services offer automatic data broker removal services — scanning databases for your information and sending takedown requests on your behalf. 

📚 Related: How To Remove Yourself From Data Broker Sites →

4. Credit and financial account monitoring beyond what your bank provides

All financial institutions should provide notifications about suspicious activity and fraudulent charges. But these alerts are unreliable at best. They also won’t extend to your credit file or other places that scammers regularly target. 

In fact, a 2024 study found that only 15% of scam victims discovered fraud through alerts from their banks [*].

Identity theft protection plans include three-bureau credit monitoring services to track changes to your credit score or credit file that could indicate signs of fraud. Many services — including Aura — also connect to your bank accounts and use artificial intelligence (AI) to scan for unusual transactions. 

Note: Every American is entitled to receive free credit reports from all three bureaus each week by visiting AnnualCreditReport.com — however, you’ll still need to know how to read your credit history and identify suspicious activity, such as new credit account numbers and unfamiliar lender inquiries. 

5. Digital security to protect against hacking, viruses, and account takeovers

To access your information, hackers may attack your computers, mobile devices, and networks. Researchers have identified 85 million new malware programs in the past six months [*]. Without protection, malware can infiltrate your devices to steal your information and spy on your activity.

One option is to enlist individual tools, such as an antivirus software to quarantine viruses, a password manager to create and store complex credentials, and a virtual private network (VPN) to shield your browsing history.

The best identity theft protection providers simplify cybersecurity by including all of these tools in one convenient (and more affordable) package.

6. Online scam protection (powered by artificial intelligence)

The top identity theft protection providers now use AI to help identify and block spam, phishing, and account takeovers. These powerful engines scan emails, phone calls, and text messages for suspicious patterns and behaviors — and either warn you or prevent scammers from ever getting to you. 

You can educate yourself about the red flags that signal scams and phishing, but it still might not be enough to keep you and your family safe. Four out of every five scam victims feel that they could identify a scam if they encountered one again — even though nearly half are repeat victims [*].

7. 24/7 support with access to expert Fraud Remediation

Many people sign up for identity theft protection solely for access to trained support teams. Most victims don’t know where to start when forced to respond to a stolen identity. Even worse, 28% of victims never receive any form of financial reimbursement for their losses [*]. 

The identity recovery services built into ID theft protection packages help victims through the reporting and disputing processes. Aura provides 24/7 access to White Glove Fraud Resolution Specialists who offer personalized guidance and support every step of the way until you restore your identity and finances. 

📚 Related: How (and Where) To Get Identity Theft Victim Assistance →

8. Identity theft insurance to cover losses and expenses

American consumers lost nearly $10 billion to fraud last year, according to the FTC [*]. Yet, that figure doesn't take into account the legal fees, lost wages, and other expenses that may be incurred during the recovery process. 

Identity theft insurance policies are included with most plans, and provide a safety net and peace of mind against the losses and expenses resulting from identity theft. 

For example, Aura offers $1 million insurance coverage per adult plan member (up to $5 million on family plans). This policy covers eligible stolen funds as well as expenses — such as costs for lawyers, travel, and Certified Public Accountants. 

How To Choose an Identity Theft Protection Provider

The best identity theft protection providers offer a multi-pronged defense against fraudsters, hackers, and scammers by combining identity and credit monitoring with digital security tools, 24/7/365 fraud resolution support, and comprehensive identity theft insurance.

While the industry has become crowded, several providers stand out from the rest of the pack:

• Aura provides all-in-one protection that combines identity, credit, and account monitoring. Standout features include three-bureau credit monitoring with the industry’s fastest fraud alerts³, AI-powered suspicious transaction monitoring, and 24/7 U.S.-based support. You can even try Aura free for 14 days.
• Identity Guard has more than 25 years of experience protecting nearly 40 million customers from identity theft. While its top packages offer extensive credit and identity monitoring along with round-the-clock U.S.-based support, some users may need more device security than what's included.
• LifeLock is a household name in identity theft protection that also offers all-in-one security — as long as you pay extra for add-ons like Norton 360 and three-bureau credit monitoring. LifeLock has also struggled with data leaks and FTC fines in recent years, including a breach last year in which more than one million account passwords were leaked. [*]. 
• McAfee has spent years providing antivirus software but recently entered the identity theft protection realm with McAfee+ packages. Along with antivirus protection, McAfee+ comes with identity monitoring, credit monitoring, and online privacy support. But since the service only includes Dark Web monitoring, some users may not be satisfied with the limited scope of identity protection. 
• IdentityForce claims decades of experience, but its main calling card is its connection to TransUnion. Thanks to this partnership, IdentityForce offers substantial credit monitoring. However, the partnership also means that users waive their rights to bring any class action lawsuits or claims against TransUnion if something goes wrong [*].
• IdentityIQ, in a partnership with BitDefender, offers comprehensive identity and credit monitoring and powerful digital security tools. But only the most expensive plans offer adequate protection; and, even then, the insurance policy leaves users on the hook for most of their financial losses. 

In almost all cases, you will be forced to choose between cost and level of security when signing up for identity theft protection. Most providers — except for Aura — offer tiered plan options with the most affordable packages only including basic features, such as one-bureau credit monitoring, limited alerts, and little-to-no digital security.  

The Bottom Line: You Can Protect Your Identity On Your Own — But Will You? 

Many of the best ways to help prevent identity theft are absolutely free and can be implemented on your own. 

For example, you can limit how scammers are able to use your stolen information by requesting a credit freeze with all three major credit bureaus (Experian, Equifax, and TransUnion). 

You can also protect your online accounts by limiting what you share on social media, and you can take advantage of basic yet effective cybersecurity practices — such as using strong passwords and two-factor authentication (2FA). 

Yet despite taking these protective measures, no one can monitor all of their accounts and sensitive data 24/7 in all of the places where scammers could potentially exploit them. 

While an identity theft protection service can’t prevent all forms of identity theft, it can provide a level of safety, support, and security that is impossible to get on your own. 

Perhaps most importantly, identity theft protection services give you access to a wealth of support and resources to help you recover should you become a victim of identity theft. You also receive insurance coverage for any expenses and losses that you incur.