Protecting Yourself from Identity Theft Scams
As concerns grow about the security of personal information, particularly with the Elon Musk-led Department of Government Efficiency (DOGE) accessing millions of Americans’ Social Security records, it’s crucial to take proactive steps to protect yourself from identity theft.
The primary concern is that if your Social Security number, bank account information, or tax records are leaked or breached, scammers could use this information to open credit card accounts, bank accounts, and telephone service accounts, or make significant purchases in your name.
To safeguard your personal information, consider placing a ‘fraud alert’ or, more effectively, a ‘credit freeze’ on your credit file.
Understanding Fraud Alerts and Credit Freezes
- A fraud alert notifies potential creditors to verify your identity before extending credit in your name.
- A credit freeze restricts access to your credit report, preventing anyone from opening new accounts without your explicit authorization.
While a credit freeze offers stronger protection, it temporarily prevents you from opening new credit cards or loans until you lift the freeze. However, it doesn’t affect your existing credit cards.
Setting Up Fraud Alerts and Credit Freezes
To set up a fraud alert, contact one of the three major credit reporting bureaus (Equifax, Experian, or TransUnion) by phone, online, or mail. They will notify the other two bureaus.
For a credit freeze, you must contact each of the three credit reporting bureaus individually. The freeze remains in place until you choose to lift it.
Both fraud alerts and credit freezes are free and do not affect your credit score.
Alternative: Monitoring Your Credit Report
If you prefer not to set up a fraud alert or credit freeze, you can regularly review your credit report. You can obtain a free credit report weekly from Equifax, Experian, and TransUnion through AnnualCreditReport.com.
By taking these steps, you can significantly reduce the risk of identity theft and protect your financial well-being.
