What Is the Best Identity Theft Protection?

Identity theft can be funny—like watching Jim impersonate Dwight Schrute in The Office.

But real identity theft is more than throwing on a $4 pair of glasses and a yellow shirt. And it does more damage than workplace shenanigans.

While you’re kicked back in your living room watching TV, a real criminal could be trying to change your cell number to a new carrier to intercept your text messages—like the one you just got with the one-time passcode to log in to your bank.

Definitely not funny.

While there’s nothing out there that can 100% protect your identity from ever being stolen, there are a lot of things you can do to protect yourself, and a big one is buying identity theft protection.

But what is the best identity theft protection out there? There are approximately a zillion of them, all saying they offer this protection or that service. And frankly, if you’re not a tech wizard, it can all sound a little like a cyborg speaking Klingon.

Don’t sweat it. We’ve got a roundup of what you should look for so you can find the best option.

What Is Identity Theft Protection?

Identity theft protection is a service that monitors your sensitive data and often offers some insurance to reimburse you if identity thieves steal your money.

Types of Identity Theft

If you read the news, sometimes it can feel like every day a criminal invents a new way to steal your identity. We haven’t listed everything, but below are a few types of identity theft.

• Financial identity theft: Thieves steal your financial information and use it to access your financial accounts (think debit or credit cards, bank accounts, HSAs, etc).
• Medical identity theft: By passing themselves off as you, thieves access medical services or drugs.
• Social Security identity theft: This one might seem obvious—yes, someone steals your Social Security number and has a ball with it.
• Tax identity theft: Usually after getting their hands on your Social Security number, criminals file a bogus tax return under your name and collect a tax refund.
• Child identity theft: Someone grabs your kid’s Social Security number (you know, while they’re so young you’re hardly paying attention to it) and commits all types of fraud or crimes while passing themselves off as the adult version of your kid.
• Synthetic identity theft: This happens when a thief forges a fake identity by combining your real, stolen information with some fake info.
• Account take-overs: Criminals gain access to your bank accounts and ruin your day by changing your password to block you out, making withdrawals, or requesting new debit or credit cards.
• Home title fraud: By submitting false paperwork, thieves steal home titles and take out a loan against your home equity—or even sign the home over to themselves.

Key Features of Reliable Identity Theft Protection

If there’s nothing you can do to fully protect yourself, what does identity theft protection do? Well, a lot—depending on which one you have. For example, this is what Zander’s Essential Plan for identity theft protection gives you:

• Up to $1 million of coverage for stolen funds and expenses
• Coverage for all types of identity theft
• Unlimited recovery services (They’ll help you contact the right people and put your life back together.)
• Protection for children and adult dependents (with the family version)
• Dark web monitoring for personal information (like baddies selling your info after a data breach)
• Social Security number monitoring
• Change of address monitoring (like if someone steals your identity and tries to change your address so they can buy things in your name—or worse)
• Data breach notifications
• Lost wallet service (They’ll cancel all your debit or credit cards and notify the right people.)
• 24/7/365 customer support and recovery services

That’s not too shabby for a basic plan.

Try 30 days of identity theft protection free from our RamseyTrusted provider.

Why Do You Need Identity Theft Protection?

Maybe you’re lucky enough to have never experienced so much as a ping on your debit cards or bank accounts. Well, that doesn’t mean you have some magical immunity. It’s a numbers game—and as technology advances, so does criminals’ access to your sensitive info.

In 2023, over 1 million people reported complaints of identity theft.^[1]  The global average cost for a data breach (one of the main sources of information theft that leads to identity theft) reached a new high in 2024 at $4.88 million.^[2]

Having your identity stolen isn’t like having the Weedwacker stolen out of your garage. You have to deal with the financial loss, yes, but also with the credit damage and the emotional stress of trying to sort out the mess—sometimes for years.

Identity theft protection provides monitoring. So hopefully, you can avoid that big mess. Some services even come with antivirus software or provide insurance in case thieves do get into your accounts and steal cash. And the good ones will also help you sort out the mess by contacting credit bureaus and filling reports for you.

Ashley C. from the Ramsey Baby Steps Facebook community group got Zander’s identity theft protection. Zander told her someone had filed an unemployment claim against her and her company—except she didn’t own a company! Zander contacted the credit bureaus for Ashley and placed a fraud alert on her info.

Key Features to Look for in Identity Theft Protection Services

Not every identity theft protection service is created equal. They can vary a lot in price and in what kind of protection they offer. Let’s look at the key features a solid service should offer.

• Fraud detection, monitoring and alerts: Like we said, you can’t fully prevent your identity from being stolen, but you can pay someone to be super vigilant and notify you immediately if something looks fishy so you can nip it in the bud. So, make sure you look for a service that offers credit monitoring, dark web scanning, Social Security number tracking, real-time fraud alerts and transaction monitoring.
• Identity recovery: One of the worst parts of identity theft is trying to put your life back together afterward. Assistance with restoring your identity if it’s stolen is a must.
• Insurance and reimbursement: Since it’s impossible to fully protect yourself, it’s a really good idea to have coverage for financial losses from identity theft.
• Family coverage: If you don’t have kids or a spouse, this isn’t a key feature for you. But for anyone with a household, you should look for options that include family member protection too. Even kids could have their identity stolen.

What Is the Right Level of Protection for You?

Similar to how you can either buy a basic car model or the fully-loaded, limited version, most companies offer at least two levels of identity theft protection.

You can get the basic version, which comes with the minimum protection services you want. Zander’s Essential Plan above is an example of this. But you can also get a premium plan with features that would make even Charlie from It’s Always Sunny in Philadelphia breathe easy.

Here’s an example of what a premium plan would include over and above a basic plan.

Zander Identity Theft Elite Bundle

Includes everything in the Essential Plan, plus:

• Home title monitoring
• Bank and retirement account monitoring
• Debit card, credit card and loan transaction monitoring
• Account take-over monitoring
• New account monitoring
• UltraVPN (virtual private network)
• UltraAV (premium antivirus)
• Experian CreditLock
• Password manager

So, how do you decide which one you need? A few factors come into play:

• Age: People between ages 30 and 39 are most likely to experience identity theft.^[1]  But seniors tend to have more assets and cash built up, which—combined with lower cybersecurity awareness—makes them a more valuable target.

• Financial situation: If you have a lot to lose, more protection is a good idea.

• Online activity: If you love to buy limited-edition Nikes from sketchy websites with URLs that end in “.ro,” you probably have a higher risk of identity theft. Same goes if you love to plug your email into every sweepstakes box that pops up, or if you open a lot of social media accounts. You might want more protection.

• Budget: At the end of the day, you should only buy what you can afford. If the essential plan is all your budget can handle, then that’s the protection for you.

And then, some companies offer family plans for folks with kids. This can be especially important with teens who are on social media and maybe even using a debit card for the first time. But pricing on family plans can differ drastically from company to company, so make sure you understand what you’re paying for.

How Much Does Identity Theft Protection Cost?

You can get a lot of protection for about the cost of a burrito. Most plans are billed either monthly or yearly, and (like with regular insurance) sometimes you can save a little by paying for the whole year.

Prices for the top identity theft protection services range from around $7 to $66 a month. The cheaper options tend to be for basic individual plans, and the pricier ones are often for premium family plans, but prices for those features differ widely between companies.

Is It Worth It?

We get it. Times are tough, the budget’s tight, and eggs might be a better investment than the stock market right now—is it really worth paying for this service?

Well, when you look at the cost versus the benefits, it becomes pretty clear. Let’s take a look:

Cost:

• One burrito (a month)

Benefits:

• Helps prevent fraud (or stops it from getting worse)
• Replaces cash you lose
• Provides expert help with recovery
• Saves you time in recovering from identity theft
• Reimburses you for time spent away from work trying to sort the mess out

Maybe a burrito is worth it.

What to Consider When Comparing Identity Theft Protection Plans

We’ll say it again: Not every identity theft protection service is created equal. That said, you’ll want to compare them and find the best fit for you.

Before we get to that, let’s address the elephant in the room. Yes, Zander pays us to recommend their identity theft protection. But we wouldn’t agree to put our name on their product if we didn’t think it was the best value out there. Everybody’s situation is different, and you should look at the options and decide what’s best for you, but we think you’ll come to the same conclusion we have.

Okay, here are some things to consider when you’re comparing identity theft protection services:

• Customer support: Their support should be accessible and should provide quality service (Zander’s is 24/7/365).
• Reputation and trustworthiness: Some big names out there have had some big troubles. Your protection service is only as good as the people standing behind it. While Zander’s identity theft protection service has only been around for about 15 years, the company has been providing folks with insurance since 1925.  
• Ease of use: If you can’t tell what’s going on because the customer interface is too complicated, you won’t be getting your money’s worth out of it. Make sure the apps and dashboards are user-friendly.
• Policy details: Marketing pages can make anything sound good. Make sure you read through and compare the terms and conditions of each service you’re considering. Check coverage, limitations and exclusions.
• Trial periods and money-back guarantees: Most companies offer some kind of satisfaction guarantee, but some are pretty stingy. If you buy the annual plan, Zander lets you cancel whenever you want and will give you a full refund on any months you didn’t use.

Common Mistakes to Avoid When Choosing Identity Theft Protection

Just like there are mistakes you can make when dating (like ignoring the fact that your girlfriend has a burner phone), there are some common mistakes to avoid when choosing identity theft protection.

• Choosing based solely on price without considering benefits: Look at Brent (but don’t look too hard—he’s just an example). He wanted to be smart and get identity theft protection, but he didn’t do the research and bought the cheapest option out there. What he didn’t notice was their reimbursement for stolen funds only covered $25,000. Then a thief intercepted his password-change verification text—along with his savings for starting a CrossFit gym. And now his cheap protection will only cover a fraction of it.
• Overlooking hidden fees or limitations in coverage: Some of the biggest guys in the industry charge you one price for the first year and then jack it up after that.
• Not reading the fine print regarding identity theft recovery assistance: Don’t just listen to a commercial—get into the fine print to make sure the company will actually deliver what they say they’ll do.
• Failing to update your protection as your life circumstances change (new address, marriage, etc): If you get married and join finances, and your spouse isn’t protected, you’re also vulnerable. Make sure you get your spouse protected too!

Get the Best Identity Theft Protection for You

At the end of the day, the best identity protection for you is the one with the most protection—and the one you can also afford. If you’re working three jobs to pay off two cars and $90,000 of student debt, another payment is the last thing you want. But thankfully, good identity theft protection can be affordable.

Zander’s identity theft protection is thorough and has a price that’s hard to argue with. Go with the Essential Plan if you’re still hard-core paying off debt. But if you can afford it, get the Elite plan—it’s the best protection at the best price out there.