Commercial identity-theft protection services are doing somewhat better at toning down their claims and providing more specifics about the assistance they provide, a report from the Consumer Federation of America says.
Last year, the federation rated various identity-protection services based on the clarity of their marketing, and whether or not they were promising more than they delivered. The federation, working with many of the sites themselves, has created a set of voluntary “best practices” for them to follow. The guidelines are meant to help deter potentially misleading claims and ensure that consumers understand just what they are getting, and how much the services cost, before they sign up.
Susan Grant, the federation’s director of consumer protection, said the goal of its work with the service providers is to help consumers understand what they are getting, because the services offered by the firms vary. Some, for instance, simply monitor a participant’s credit file for suspicious activity and send e-mail alerts to subscribers, while others offer Internet scanning, which aims to ferret out credit card numbers or other information that may be offered for sale on illegal Web sites. Still others may offer checks of public records, such bankruptcy filings, to see if stolen personal information is being used to create a new identity.
Some sites essentially offer advice about what to do, after the fact — which may be helpful, she said, but is different from actively preventing identity fraud. “For some people, someone who will hold your hand through the process may be really what they need,” she said. But it is important for consumers to know that advice is what they are buying, she said.
A recent review of 20 Web sites — some of which participated in the federation’s working group, and some that didn’t — found that many have made “significant improvements” or are in the process of implementing the federation’s recommendations, said Ms. Grant.
For instance:
– The federation found that AllClear ID (formerly called Debix) modified its claim of a “100% success rate,” to state that it referred to resolving cases of financial identity fraud, specifically. (Ms. Grant noted that because there are other types of identity theft, including medical identity theft, the federation considered the claim to be too broad).
AllClear ID also added information under its “frequently asked questions” about its refund policy, and a link to a summary of the benefits of its insurance policy, the federation found.
– Equifax, which was not a member of the federation’s working group, added a link from its products page to a summary of the benefits provided by its identity-theft insurance, and also provides a clearer explanation of the fraud assistance that it offers to customers if they become identity-theft victims, the federation said.
– Identity Guard, offered by Intersections Inc., has added an explanation to make clear that the credit score it provides as part of its service is for educational purposes, and isn’t the score that lenders actually use.
Some services, however, don’t seem to be in a big hurry to change their approach. Experian, the federation said, will make changes to its Web site “over the next twelve months,” including the removal of a claim to “Stop Identity Theft in its Tracks.” (In its 2012 report, the federation said the statement was an “overpromise” of what the service could do.)
The federation is in ongoing talks with TransUnion about making changes to its Zendough site, the federation said. (In its 2012 report, the federation had recommended changes like putting more information in easy-to-find locations, rather than in a jargon-filled “product agreement.”)
One site, EZShield, didn’t respond when the federation tried to contact it, the report said.
The federation offers tips on shopping for identity theft services on its identitytheft.org site, and additional information is available from the Privacy Rights Clearinghouse as well as the Federal Trade Commission.
Have you used an identity fraud service? Did you find it helpful?
Article source: http://bucks.blogs.nytimes.com/2013/06/12/id-theft-services-toning-down-some-claims/?partner=rss&emc=rss