The truth about 'free credit monitoring'
After a data breach, companies almost always offer free credit monitoring. It sounds helpful, but it's important to understand what you're actually getting—and what you're not.
Why companies offer it
When a company suffers a data breach, they're legally required to notify affected individuals. But beyond legal requirements, offering free credit monitoring has become the standard response because:
- It's expected — Customers and media now expect this offer after any significant breach
- It's relatively cheap in bulk — Companies negotiate volume discounts with monitoring services
- It shifts responsibility — Once they've offered monitoring, they can argue they've "done their part"
- It may limit liability — In lawsuits, offering monitoring is seen as taking reasonable steps
This isn't to say companies are being malicious—many genuinely want to help. But the offer is more about meeting minimum expectations than providing comprehensive protection.
What credit monitoring actually does
It does:
- Alert you when new accounts appear on your credit report
- Notify you of credit inquiries (when someone pulls your credit)
- Show you your credit score
- Track changes to your existing accounts
- Sometimes include "dark web" scanning for your data
It doesn't:
- Prevent anyone from opening accounts in your name
- Stop fraud before it happens
- Protect against tax fraud, medical identity theft, or bank account fraud
- Continue protecting you after the free period ends
- Monitor all three credit bureaus (often just one)
The critical difference
The fine print you should know
Limited time coverage
Most breach offers last 1-2 years. After that, you're either unprotected or paying for it. Your stolen data doesn't expire—criminals may wait years before using it.
Often single-bureau monitoring
Many free offers only monitor one credit bureau. Fraudsters may target a bureau you're not monitoring. You have three credit reports—Equifax, Experian, and TransUnion—and fraud can appear on any of them.
Identity theft "insurance" limitations
Some services advertise "$1 million identity theft insurance." Read the fine print—this usually covers expenses related to recovery (like lost wages, legal fees), not direct theft losses. And it often has significant exclusions.
Upselling after the free period
The company providing "free" monitoring makes money by converting you to a paid subscriber. Expect marketing emails as your free period ends.
Our verdict
Accept the free monitoring—but don't rely on it as your primary protection.
- Do accept it — It's free and provides an extra layer of awareness
- Do freeze your credit — This is your primary defense (it's also free)
- Don't pay for monitoring — Free options like Credit Karma cover the same ground
- Don't feel protected — Monitoring alone leaves significant gaps