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As the rate of identity theft rises in the United States, many people choose to place a freeze on their credit file if they believe their personal information has been stolen.
What a Security Freeze Does and Doesn’t Do
When you place a security freeze on your credit file, a credit bureau cannot access your credit history. This means that no one can open a new account in your name or receive new credit in your name, since creditors are unable to access your file. A freeze only protects you from new account fraud.
A security freeze does not prevent misuse of existing bank or credit accounts. It does not protect you from existing account fraud. If a thief already has account information, they can continue to misuse the account even in the event of a freeze. You must check your bank statements and balances to ensure that you’re not a victim of existing account fraud.
Should I Place a Security Freeze?
Placing a security freeze on your credit file helps give you peace of mind that your finances are secure against theft and new account fraud. If you want or need to place a freeze on your credit file, you must do so with each of the three main consumer reporting agencies.
People place a freeze on their credit file for many reasons. If any of the following statements apply to you, you may want to consider it.
- I do not plan to open any new credit accounts in the near future.
- I suspect that I’ve recently been a victim of identity theft.
- I’ve had my identity stolen in the past.
- I suspect that mail containing personal or financial information has been stolen.
- I gave an untrustworthy source my banking personal identification number (PIN) or Social Security number (SSN).
- I’ve been contacted by a debt collector for a debt that I am unaware of and never initiated.
- I’d like to take a precautionary measure against identity theft and the resulting amount of time I’d have to spend correcting my credit file and affected account(s).
- you plan to set up a new credit account in the future, or if you often use instant credit.
- you are moving and will need to switch service providers (they may need to check your credit).
Before, during, or following a security freeze, continue to protect your personal and financial information in the following ways:
- only use your personal computer to enter private information with trusted websites.
- never carry personal identification numbers, such as your Social Security Card or your PIN, in your wallet.
- only interact with and buy products from reputable companies or agencies.
- use a disposable credit card to make online purchases.
