CREDIT MONITORING – THE FATAL FLAW IN PROTECTING CONSUMERS

Credit monitoring services offered by the credit bureaus are increasingly popular with consumers seeking to protect themselves from identity theft. Unfortunately credit monitoring services do not prevent identity theft. The limitations of this expensive service should be well understood by consumers before purchasing a service providing little or no real protection.

Credit monitoring is designed to inform you of changes to your credit bureau records as they occur. However these systems contain significant lag times – often weeks or months, before changes are detected by these systems. Credit grantors do not immediately report new credit cards to the bureaus. New card issues are batched and processed often 30 to 60 days after granting.

In KnightsBridge Castle’s experience, and in the experiences of leading consumer advocates, the probability of notification of a new credit account before the consumer is contacted by a collection agency is low. In other words, the delay in notifying the credit bureau of a new credit card, creates a situation where a credit card collection agency is likely to be the first indication you have of a credit fraud.

Credit monitoring does nothing to prevent over 80 identity crimes, such as false employment fraud using your Social Security Number, tax fraud, medical benefits fraud, property frauds, drivers license fraud, and many other identity crimes. Strangely ATM fraud and bank fraud (such as forged checks) are not covered by credit monitoring services!

The Fatal Flaw – Credit monitoring is like a fire alarm that goes off after the house had burned to the ground. Its too little, for too much money, and its way too late.