Make it difficult for criminals to open accounts in your name
Roseville, Calif. – Identity theft is on the rise, and experts say there's no end in sight. In 2024, data breaches exposed more than 1 billion records, a staggering 312% increase from 2023, according to the Identity Theft Resource Center.
Major companies, including Change Healthcare, United Healthcare, and AT&T, experienced breaches, affecting millions of people. With cybercriminals constantly finding new ways to steal personal information, it's important to take steps to protect yourself. One of the best ways to do this is by freezing your credit.
How Does a Credit Freeze Work?
A credit freeze stops lenders from accessing your credit report. When you apply for a loan, credit card, or bank account, lenders check your credit history before approving your application. If your credit is frozen, they cannot access your report, making it difficult for criminals to open accounts in your name.
What to Know About Freezing Your Credit
The Federal Trade Commission (FTC) provides these important facts about credit freezes:
- Anyone can freeze their credit.
- Freezing and unfreezing your credit is free.
- A credit freeze does not affect your credit score.
- You must contact all three major credit bureaus-Equifax, Experian, and TransUnion-to freeze your credit.
- A freeze remains in place until you lift it. If you need to apply for credit, you'll have to lift the freeze at all three bureaus. However, if you know which bureau a lender will use, you can lift the freeze only at that bureau.
Should You Place a Fraud Alert Instead?
In addition to a credit freeze, you might consider placing a fraud alert on your credit file. A fraud alert notifies lenders to take extra steps to verify your identity before opening a new account.
3 types of fraud alerts
- Initial Fraud Alert: If you suspect identity theft, you can place this free alert, which lasts one year. It makes it harder for someone to open an account in your name.
- Extended Fraud Alert: If you've been a victim of identity theft and have completed an FTC report at IdentityTheft.gov or filed a police report, you can place this free alert. It lasts seven years and also removes your name from unsolicited credit and insurance offers for five years.
- Active Duty Fraud Alert: If you are on active military duty, you can place this alert to protect your credit while deployed. It lasts one year and removes you from unsolicited credit and insurance offers for two years.
Take Action Now
A credit freeze and fraud alert are powerful tools to guard against identity theft. You can place both on your credit file for added protection. If you believe your identity has been stolen, visit IdentityTheft.gov to report the incident and receive a personalized recovery plan.
For more details, visit the FTC website to determine if a credit freeze or fraud alert is right for you. Taking these precautions now can save you time, stress, and financial loss in the future.