Identity Theft Protection Services: Do You Actually Need One?

Identity theft protection services are essentially insurance products that reactively compensate losses rather than actively preventing theft. The FTC received 6.47 million fraud reports in 2024, but coverage details vary significantly—headline figures like $1M reimbursement often include caps and exclusions for scams, cyber extortion, and cyberbullying. Experts advise carefully reading policy terms, as not all services offer equal value.