Protect Your Personal Information with Fraud Alerts and Credit Freezes
Dear Savvy Senior,
I am very concerned about potential breaches of my Social Security number and personal financial information. What can I do to protect myself from identity theft?
Worried Senior
Dear Worried,
It’s a great question, and it’s understandable to be concerned about the security of your personal information. If you’re worried about the privacy of your personal data, there are steps you can take to protect yourself.
One of the primary concerns for many Americans—especially in the wake of potential increased risks—is the threat of identity theft. Scammers can use your personal information to open credit card accounts, bank accounts or other services in your name.
If you’re worried about the privacy of your personal information, the best way to help protect yourself is to place a “fraud alert,” or even better, a “credit freeze,” on your credit file.
Understanding Fraud Alerts and Credit Freezes
A fraud alert is a notification placed on your credit report that signals to potential creditors to perform extra identity verification steps before extending credit in your name. A credit freeze offers stronger protection because it completely restricts access to your credit report. This effectively prevents new accounts from being opened in your name without your explicit authorization.
While a credit freeze provides greater security than a fraud alert, there’s a trade-off: you won’t be able to open new credit cards or get a loan while the freeze is active. It does not prevent you from using the credit cards you already have. If you need to open a new account, you can temporarily lift the freeze on your account, and then refreeze it.
Neither a fraud alert nor a credit freeze affects your credit score, and both are free to implement and remove.
Setting up a Fraud Alert
To set up a fraud alert, contact any one of the three major credit reporting bureaus—Equifax, Experian, and TransUnion—by phone, online, or by mail. The agency you contact will notify the other two.
Here’s the contact information for each bureau:
- Equifax: 800-685-1111 or Equifax.com/personal/credit-report-services
- Experian: 888-397-3742 or Experian.com/help
- TransUnion: 888-909-8872 or TransUnion.com/credit-help
If you haven’t been a victim of identity theft, you’ll need to set up an initial fraud alert, which lasts for one year, although you can renew it annually.
Setting up a Credit Freeze
To set up a credit freeze, contact each of the three credit reporting bureaus: Equifax, Experian, and TransUnion. Remember that a credit freeze lasts until you unfreeze it.
Before you apply for a new credit card or loan, you’ll need to temporarily lift the security freeze by following the procedures from each credit reporting bureau where you placed the freeze.
If you prefer not to set up a fraud alert or credit freeze, consider reviewing your credit report regularly. You’re entitled to a free credit report each week from Equifax, Experian, and TransUnion by visiting AnnualCreditReport.com.
This information is provided for informational purposes only and not as financial advice. Consult with a financial professional for tailored guidance and advice.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. This article is written by Jim Miller, contributor to the NBC “Today” show and author of “The Savvy Senior” book.
