Several companies recently announced cyber security incidents that affected a lot of people.  We as consumers do our part by signing up for fraud alerts and monitoring our credit.  But even with these tools and services we are still facing situations where our personal information can get stolen.  What else can be done?  Is a credit freeze a way to fight identity theft?  A credit freeze restricts access to your credit report from anyone trying to take out credit in your name.  When a credit freeze is placed on your report, credit bureaus will not release your report to any company requesting it.  With a credit freeze in place, whoever stole your information cannot open a new account under your name.

Setting up a credit freeze on your own is pretty simple.  Keep in mind though, you will have to sign up separately with each of the three credit bureaus.  Placing a credit freeze on your report usually costs between $2 and $10 per agency.  But until recently, Congress passed a new federal law allowing consumers to freeze and unfreeze their credit for free.  The new federal law extends how long a fraud alert can stay on your credit report from 90 days to one year.

Steps to Placing a Credit Freeze

  • Step 1: Go to the credit bureau websites and click on the “security freeze” tab.  You will need to type in your name, address, social security number and date of birth.  If you do not feel comfortable online you can also submit a credit freeze request via phone or in writing.  You will be asked a series of questions about your background to confirm your identity.  The following are links to each credit bureau: Equifax: www.equifax.com/personal/credit-report-services/;Experian: www.experian.com/freeze;TransUnion: www.transunion.com/credit-freeze.  
  • Step 2: Select the security freeze option.
  • Step 3: Write down your PIN number.  You will need access to the PIN number when you apply for a credit card or a mortgage.

If the credit bureaus cannot verify your identity based on the information you have given, you will have to mail copies of your driver’s license, utility bills or other documentation validating your identity.