Fraud Alerts and Credit Freezes

Having your identity stolen is a scary and stressful experience.  But there two ways that you can keep identity thieves from opening up new accounts in your name—fraud alerts and credit freezes.

To place a fraud alert on your credit file, contact one of the three major credit reporting agencies (Equifax, Experian, Trans Union) and tell them that you have been the victim of identity theft.  The first agency that you contact is then responsible for informing the other two.  Fraud alerts are free and last for 90 days, after which you can renew the fraud alert.  Or, if you believe that you need protection that is more lasting, you can request an extended fraud alert that will last for seven years.  While the fraud alert is in effect, any potential creditor would need to contact you by phone to ask your permission to open a new account.  While a fraud alert will not protect existing accounts that have been used fraudulently, it will stop any future accounts from being opened.

Victims of identity theft who are looking for more protection may consider placing a credit freeze, also called a security freeze, on their credit files at all three national credit reporting agencies. If you want a credit freeze, you will need to contact all three of the credit reporting agencies and request it.  You will need to provide personal identifying information such as your Social Security number and birthdate.  Credit freezes often cost money to both initiate and stop.  Once your credit freeze is complete, each credit reporting agency will send you a confirmation letter and a PIN or password.  This will allow you to “unlock” your credit freeze either temporarily or permanently.

Once your credit freeze is in effect, no company will be able to view your credit report at any time, even if its aim is to extend certain prescreened offers of credit to you.  And if you are looking to make a change that requires a credit check, such as applying for a new loan, credit card or new job, you will need to use your PIN or password and pay a fee to have your credit freeze unlocked so that the potential creditor can view your file.