By J. Mesa
Data Privacy Week arrives at the end of January. Mark it with one action that takes fifteen minutes and costs nothing: freeze your credit. After years of large breaches, assume your Social Security number and date of birth are already for sale. A freeze makes that stolen information far less useful to a thief.
What is a credit freeze?
A credit freeze, also called a security freeze, blocks lenders from viewing your credit report. Lenders check that report before they approve a new account. With the report locked, a criminal who applies for a loan or a credit card in your name gets declined.
Is a credit freeze free?
Yes. Federal law has required the three national credit bureaus to place and lift freezes for free since September 2018. Do not pay anyone for one.
Does a credit freeze hurt my credit score?
No. A freeze has no effect on your score. You can keep using your existing cards and loans as usual. Your current lenders can still see your report, and you can still pull your own.
How do I freeze my credit?
You must contact each of the three bureaus separately. A freeze at one does not carry over to the others.
- Equifax. Go to equifax.com and look for “Security Freeze,” or call 1-800-685-1111.
- Experian. Go to experian.com/freeze, or call 1-888-397-3742.
- TransUnion. Go to transunion.com/credit-freeze, or call 1-888-909-8872.
At each one:
- Create an account with your name, address, date of birth, and Social Security number.
- Answer the identity questions.
- Choose the free freeze. The sites promote paid “lock” and monitoring products along the way. You can skip them.
- Save the login or the PIN in your password manager. You will need it to lift the freeze.
By law, a freeze requested online or by phone takes effect within one business day.
Type the bureau addresses into your browser yourself. Search results and emails sometimes lead to look-alike sites built to steal the same details you are trying to protect.
Should I freeze my credit at other agencies?
For fuller coverage, add these:
- Innovis, a fourth credit bureau, at innovis.com.
- ChexSystems, which banks check before opening a checking or savings account, at chexsystems.com.
- NCTUE, which phone, cable, and utility companies use, at nctue.com.
How do I lift a credit freeze?
When you apply for a mortgage, a car loan, a new credit card, or an apartment, lift the freeze first. Sign in to the bureau’s site and choose a temporary lift, sometimes called a thaw, for a set number of days. Online and phone requests take effect within one hour.
Ask the lender or landlord which bureau they use, and lift only that one. The freeze returns on its own when the period ends.
What is the difference between a freeze, a lock, and a fraud alert?
- Credit freeze. Free, set by federal law, and blocks new creditors until you lift it.
- Credit lock. A product the bureaus sell or bundle with their apps. It works much like a freeze with a quicker on-and-off switch, but it is governed by the company’s terms and not by the freeze law, and it may carry a monthly fee.
- Fraud alert. A note on your report that tells lenders to verify your identity before opening an account. It is free, lasts one year, and you only need to request it from one bureau, which notifies the other two. Victims of identity theft can get an extended alert that lasts seven years.
A freeze gives the strongest protection. A fraud alert asks lenders to be careful. A freeze stops them from seeing the report at all.
Who should freeze their credit?
Nearly every adult. If you do not plan to apply for credit in the next few weeks, a freeze costs you nothing and removes a major risk. It matters most if:
- You received a breach notification letter
- You lost your wallet or your Social Security card
- You saw accounts or inquiries you do not recognize
- You are older and rarely apply for new credit
Should I freeze my child’s credit?
Yes. Children make attractive targets, because nobody checks a child’s credit for years. A thief can use a child’s Social Security number until the child turns 18 and applies for a student loan. Parents and guardians can freeze the credit of a child under 16 for free. The process requires mailing copies of documents, such as a birth certificate and your own ID, to each bureau. You can do the same for an adult you hold a power of attorney for.
What does a credit freeze not protect against?
A freeze stops new credit accounts. It does not stop:
- Fraud on the cards and bank accounts you already have
- Tax refund fraud
- Medical identity theft
- Fraudulent unemployment or benefits claims
- Phishing and account takeover
So add these steps:
- Check your credit reports. You can get free reports from all three bureaus at annualcreditreport.com, the only site authorized by federal law.
- Get an IRS Identity Protection PIN. This six-digit number stops someone else from filing a tax return with your Social Security number. Since 2021, any taxpayer who can verify their identity may request one at IRS.gov. See our post on tax scam season.
- Turn on transaction alerts for your bank and card accounts.
- Use unique passwords and multi-factor authentication on financial accounts and email.
- Create your own accounts first. Set up your online accounts at ssa.gov, IRS.gov, and the Postal Service’s Informed Delivery before a criminal claims them in your name.
Do I need to pay for credit monitoring or identity theft protection?
Monitoring tells you after something happens. A freeze prevents the most damaging kind of fraud before it happens, for free. If a breached company offers you free monitoring, accept it. Paying for a service is a personal choice. Some people value the insurance and the recovery help. No service prevents identity theft, whatever the advertisement says.
What should I do if someone already opened an account in my name?
- Go to IdentityTheft.gov, the FTC’s recovery site. It builds a step-by-step plan and generates an identity theft report.
- Call the fraud department of the company where the account was opened. Ask them to close it and send written confirmation.
- Freeze your credit at all three bureaus and place a fraud alert.
- Dispute the fraudulent entries with each bureau, using the FTC report.
- File a police report if a creditor asks for one.
- Keep notes of every call: date, name, and what was said.
Why should a business owner care?
Your personal credit often backs your business. Many owners personally guarantee loans, leases, and business credit cards, so identity theft against you can damage the company’s ability to borrow. Criminals also commit business identity theft, filing false paperwork with a state agency or opening credit lines in a company’s name.
- Freeze your personal credit.
- Check your business credit reports with Dun and Bradstreet, Experian, and Equifax.
- Sign up for email alerts from your Secretary of State, where the state offers them, so you learn when someone changes your business filing.
- Share this guide with employees. Staff who suffer identity theft lose work time and focus, and a company that holds their Social Security numbers has a duty to protect them.
Your next step
Set aside fifteen minutes tonight and freeze your credit at Equifax, Experian, and TransUnion. Save the three logins in your password manager. If your business holds Social Security numbers for employees or customers, Cerberus Cybersecurity can assess how you protect them. See our services or contact us.