As someone from abroad, one thing I’ve always found fascinating in the U.S. is the obsession with credit cards and “building credit.” For the longest time, it sounded to me like trying to pay with Monopoly money. It wasn’t until I got a car that I finally started to (sort of) understand how it all worked.
Anyway, abiding by the good old when in Rome… I got my credit card, and many years later, I decided to get another one, after learning about Miles Rewards (because who doesn’t love free flights, right?). That’s when something surprising happened.
When my shiny new card arrived, a little pamphlet flew out of the envelope; I assumed it was just another pitch to take out a loan, so I tossed it. But then FOMO kicked in. I did the walk of shame back to the trash can, fished it out, and read: Mastercard ID Theft Protection™; Enroll in your complimentary ID Theft Protection.
Oh, the things that can fall into the laps of Data Privacy Nerds! I was skeptical at first, since my other bank always offered monitoring services for a monthly fee. But after some quick research, it turned out to be real: Mastercard offers free identity theft protection to cardholders. They provide monitoring and resolution services to help protect against identity theft. It proactively monitors various data sources, including the dark web, for compromised personal information and alerts users to potential threats. If identity theft is suspected, Mastercard provides access to resolution specialists who offer guidance and support to help cardholders address the issue. And all that at no cost.
Once I signed up and realized how useful it was, I started asking around. Nobody I talked to knew about it! Most people grabbed their card and tossed the rest, just like I almost did. So I’m here to tell you: Don’t skip the pamphlet. If you own a Mastercard credit card, you might want to look at the link I added above, and see if you are eligible.
Not a Mastercard user? There may still be free or discounted identity protection options available to you. Some things to check:
- Visa Advanced Authorization (VAA): While not the same as a user-facing protection plan, VAA helps detect fraud in real time by assessing the risk of transactions.
- American Express and Discover: These often offer monitoring services, though usually for a fee.
- Renters/homeowners insurance: Some policies include ID theft protection or offer it as an add-on.
- Membership perks: AAA, AARP, and some professional organizations offer free or discounted ID protection tools.
Even if you don’t currently have access to a free service, paid identity theft protection may be worth considering. Identity theft recovery services typically cost around $200 per year and fall into two categories:
- Monitoring Services: these alert you when your credit is pulled or your information appears in risky places. Many also offer lost wallet protection and account replacement services.
- Identity theft recovery assistance and insurance: these help you clean up after an identity theft incident, sometimes reimbursing you for financial losses and expenses. Just be sure to read the fine print so you know what’s covered and what documentation you might need.
Of course, the best strategy is to reduce the risk in the first place. Otherwise, you may become a victim of identity theft. In other articles we have already discussed other ways to help you stay protected, but it’s worth repeating:
- Freeze your credit to block scammers from opening new accounts in your name.
- Lock your Social Security number through E-Verify, especially if you’re not actively job hunting.
- Use long, unique passwords and enable two-factor authentication whenever you can.
- Free tools like the ones mentioned above and in this article from Nasdaq can help you stay informed, and they may also help you learn more about where your finances currently stand so you can make decisions that positively impact your credit.
If you are going to be traveling this summer, this should be on your to-do list before leaving: make sure you’re protected in case you lose your wallet while dancing or posing for photos.
Smart travel starts with smart cyber hygiene. Go check that pamphlet drawer, you might already have some protection waiting for you!