Protecting Your Financial Identity
With over 1 million reports of identity theft in 2023 alone, according to the Federal Trade Commission, it’s no wonder many are concerned about their financial security. While credit monitoring services can offer peace of mind, they often come with a monthly fee. Fortunately, there are several free and low-cost ways to keep tabs on your credit and protect your financial identity.
Freeze Your Credit Reports
One effective step is to freeze your credit reports. This prevents new lenders from viewing your reports, making it more difficult for thieves to open new credit accounts in your name. Thanks to federal law, placing or lifting a freeze is now free for all consumers. You must request a freeze separately with each of the three major credit bureaus: Equifax, Experian, and TransUnion.
Monitor Your Reports
Credit Karma offers a free service that shows your Equifax and TransUnion reports on a weekly basis and alerts you to any changes. Additionally, Discover and Mastercard cardholders can sign up for free monitoring of their Social Security numbers on the dark web.
Set Up Alerts
While a credit freeze or lock won’t stop a crook from accessing your existing credit card or financial accounts, you can set up alerts to spot unusual activity, such as large withdrawals or payments.
Get Free Help
If you become a victim of identity fraud, the Federal Trade Commission’s IdentityTheft.gov site offers recovery steps, a tailored remediation plan, and sample dispute letters. The Identity Theft Resource Center (www.idtheftcenter.org) provides guides to recovering from identity theft and links to state resources. Credit Sesame members can access restoration specialists, and you can also check with your employer, bank, or credit card issuers for resolution assistance.
The Bottom Line
Protecting your credit and personal information doesn’t have to be complicated or expensive. By taking proactive steps like freezing your credit, monitoring your accounts, and using strong passwords, you can significantly reduce your risk of identity theft. While no method is foolproof, staying vigilant and acting quickly if something seems suspicious can help safeguard your financial future.
