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In Identity Theft Protection, Does Credit Freeze or Credit Monitoring Make More Sense?
April 30, 2007
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As Identity Theft threatens the privacy, financial security, and freedom of individuals throughout the world, pro-active and prudent citizens are turning to Credit Freeze (also known and Credit Lock and Security Freeze), Credit Monitoring and additional Identity Theft Protection measures. Does Credit Freeze ( Credit Lock / Security Freeze ), or Credit Monitoring make more sense?
In a recent informal poll conducted by GS&R and published at www.CreditLock.com, 42% of respondents indicated having neither service, while 14% of respondents indicated having both services. Meanwhile, 14% replied to having only Credit Freeze ( Credit Lock / Security Freeze ), while 28% replied to having only Credit Monitoring. GS&R points out that in reality, the percentage of individuals who have neither service is much higher than 42%, and hence the other categories would also be lower. That is a result of the fact that the website focuses on Identity Theft, and poll respondents are more likely to be pro-active about Identity Theft than non-visitors.
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 | However, the informal poll is still valuable as it sheds light on the relationship between the two. The poll indicates that respondents are twice as likely to have Credit Monitoring than Credit Freeze ( Credit Lock / Security Freeze ). In reality, such finding is most likely to be true, and the actual ratio is probably more than double. After all, Credit Freeze ( Credit Lock / Security Freeze ) is currently only available in about half of the States in the U.S.A, while Credit Monitoring is available to all.
Given such results, consumers may be saying that Credit Monitoring makes more sense than Credit Freeze ( Credit Lock / Security Freeze ). There are almost no inconveniences associated with Credit Monitoring, other than the cost which in most cases can range between $100 and $150 per year. On the other hand, Credit Freeze ( Credit Lock / Security Freeze )is typically free for victims of identity theft, and for non-victims, it can cost as little as nothing, as in Colorado, New Jersey and New York, and as much as $20 per Credit Bureau ($60 for all three Credit Bureaus) as in Delaware.
From a cost perspective, a Credit Freeze ( Credit Lock / Security Freeze ) seems cheaper. On the other hand, consumers may find a Credit Freeze ( Credit Lock / Security Freeze ) inconvenient in case they are actively looking for credit, employment or a residence to rent. A Credit Freeze ( Credit Lock / Security Freeze ) does not prevent consumers from securing such services, as a Credit Freeze ( Credit Lock / Security Freeze ) can be removed on a permanent or temporary basis (either for a specific period or specific creditor). However, it is possible consumers do not want to wait a few days for such removal. However States, such as Utah, are starting to require that a removal be implemented in no more than 15 minutes. If such trend continues, then the associated inconvenience is practically gone.
It is also possible that consumers find the multitude of Credit Freeze ( Credit Lock / Security Freeze ) laws, requirements and fees hard to follow and implement. However, a new service, Credit Lock Down Pro™, offered at www.creditlock.com, has streamlined such information, procedures, and requirements, starting with an easy to use interactive color-coded U.S. map, and ending with Print & Fill kits.
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Most importantly, many consumers may still be unaware of the availability and details of Credit Freeze ( Credit Lock / Security Freeze ). Credit Monitoring has become a multi billion dollar business, and is very actively promoted by all providers . On the other hand, Credit Freeze ( Credit Lock / Security Freeze ) is not heavily promoted.Despite the current wider acceptance of Credit Monitoring than Credit Freeze ( Credit Lock / Security Freeze ), which service makes more sense?Credit Freeze is both an Identity Theft Deterrence and Defense tool. On the other hand, Credit Monitoring is an Identity Theft Detection tool. In other words, since unauthorized access to a Credit Report is blocked through the initiation of a Credit Freeze ( Credit Lock / Security Freeze ), criminals are mostly unable to secure credit in the name of their victims. On the other hand, in the case of Credit Monitoring, consumers will be able to tell if someone has already accessed their Credit Report, or requested and possibly received Credit in their name. However, consumers with Credit Monitoring will not be able to prevent the unauthorized issuance of credit in their name, unless they follow Identity Theft detection with Fraud Alerts, and a Credit Freeze ( Credit Lock / Security Freeze ). Given such distinction between the two services, a Credit Freeze ( Credit Lock / Security Freeze ) is more effective in directly preventing the issuance of unauthorized credit. However, if despite a Credit Freeze ( Credit Lock / Security Freeze ), a criminal is capable of securing unauthorized credit (a highly unlikely scenario, but possible), the victim will need Credit Monitoring to discover the unauthorized activity.What makes most sense is for consumers to possibly utilize both services. A complete Identity Theft Protection strategy requires all three components of Deterrence, Detection and Defense. A good analogy is a home security system. It is important to have a locked door and secure windows at your home to deny access to intruders. It is important to have motion detection sensors inside the house, in case an intruder is able to bypass the locked door and secure window. It is also important to have an alarm, to notify the owners, police, and neighbors of a forced entry. The locked door and secure windows are the Credit Freeze ( Credit Lock / Security Freeze ). The motion detection sensors are the Credit Monitoring. The alarm is the Fraud Alerts.Most individuals have a home security system and a car security system. Damages associated with burglary and auto theft are at least three times less than damages associated with Identity Theft. Doesn't it make even more sense to have Identity Theft Protection? Aren't Credit Freeze ( Credit Lock / Security Freeze ), Credit Monitoring and Fraud Alerts all an integral part of such protection?
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