Trusted ID: fight ID theft, or very bad idea?

This made me think:

“Silicon Valley based Trusted ID, which launched IDFreeze last year to help protect people from identity theft, released their second product this evening – Stolen ID Search.
Some people will feel uneasy inputting this sensitive personal information to complete the search. I believe Trusted ID can be trusted with this data – they are venture backed by Draper Fisher Jurvetson and say they do not store this information at all after the search is completed. Also, a social security or credit card number without additional information (a name in particular) is useless to fraudsters, and Trusted ID does not ask you for this information.

You can also request that Trusted ID monitor for future fraud.”

If they don’t store your data – how can they monitor for future fraud (ok, they might store hashes, but still…)?

I have a very bad feeling about this.