Final answer:
Yearly credit checks are indeed necessary as they help monitor for identity theft, which can occur without immediate knowledge and cause severe financial damage. Regular credit monitoring is crucial for early detection of any fraudulent activities.
Step-by-step explanation:
The statement that yearly credit checks are not necessary because you will instantly know if someone steals your personal information is false. Performing regular credit checks is a critical step in monitoring your credit history for red flags that may indicate identity theft. Identity theft, or 'True-name Fraud', can occur without your immediate knowledge, leading to unauthorized use of your personal identification, credit, or account information. By the time you notice irregularities in your financial accounts, significant damage may have already been done.
To safeguard against identity theft, it is crucial to protect your credit and debit cards, secure your mailbox, use strong passwords, employ anti-virus software, and notify your bank of any contact information changes. Additionally, with increasing online activities and noteworthy data breaches in reputable organizations, your risk of identity theft has escalated, making credit monitoring all the more essential.