One step
financial account holders can take to protect themselves against
identity theft is to freeze their credit. The credit freeze is
currently the most powerful weapon individuals have against many
types of ID theft. But, taking this step can provide some of its
own hassles and consumers need to plan ahead.
According to the
Federal
Trade Commission, credit freeze laws vary from state to state.
In some states, anyone can freeze their credit file, while in
other states, only identity theft victims can. The cost of
placing, temporarily lifting, and removing a credit freeze also
varies. Many states make credit freezes free for identity theft
victims, while other consumers pay a fee – typically $10.
The
credit bureaus will typically ask the consumer requesting a free
credit freeze due to identity theft for a copy of a police
report, FTC Identity Theft Complaint / Affidavit, or other
government law enforcement agency report.
Non-victims can also
freeze their credit, for a fee (typically higher than any charge
for identity theft victims). Charges vary among each of the
three credit reporting agencies – Equifax, Experian and Trans
Union.
According to Equifax, placing a credit freeze
does not affect a person’s credit score – nor does it keep a
person from getting a free
annual credit report, or from buying his or her credit
report or score. |
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If a person who has placed a credit freeze with the
credit reporting agencies wants to apply for a loan or credit card, or
otherwise needs to give someone access to the credit report he or she
would need to temporarily lift the restriction. This can be done by
using the PINs from the different reporting agencies and, usually, by
paying a fee.
However, there is typically a delay between the
request and the freeze actually being lifted. The delay could be up to
three business days. Additionally, a person likely will not be able to
request a temporary lift of a security freeze during non-business hours
or on weekends.
This means the
person with the frozen credit would not be able to get the "instant"
credit offered by some auto dealers and retailers.
And a person
may go through the trouble and potential expense of placing a credit
freeze with only limited protection against identity thieves. The
Federal Trade Commission cautions that a credit freeze, "...will not
protect you, from an identity thief who uses your existing credit cards
or other accounts. There are also new accounts, such as telephone,
wireless, and bank accounts, which an ID thief could open without a
credit check. In addition, some creditors might open an account without
first getting your credit report. And, if there’s identity theft already
going on when you place the credit freeze, the freeze itself won’t be
able to stop it.”
|
DID YOU KNOW...
The Consumer Sentinel Network
(CSN) was started in 1997 to collect fraud and identity theft
complaints. The CSN now has more than 7.2 million complaints,
including those about credit reports, debt collection,
mortgages, and lending, among other subjects. [Source] |
Based in Colorado, Rob Douglas is an identity theft expert and has
been fighting against fraud and cyber crime for more than a decade. He
is the editor of www.IdentityTheft.info and a speaker at identity theft conferences
across the USA.
By Rob Douglas, Writer, www.IdentityTheft.info
Last updated:
September 04, 2009
Webopedia's 'Did You Know... Defend Yourself Against Identity Theft'
Identity theft is a crime whereby criminals
impersonate individuals, usually for financial gain. In today's society,
you often need to reveal personal bits of information about yourself,
such as social security numbers, a signature, name, address, phone
numbers, and even banking and credit card information.
Identity Theft Experts -
www.IdentityTheft.info
Includes identity theft articles, research and videos related to
identity theft protection.
Webopedia's 'Did You Know... 10 Tips for Creating Secure Passwords"
With so many passwords to remember, it can be difficult to remember
them, and people may think it is easier to simply use the same password
on different sites, or to use passwords that are easy to remember such
their date-of-birth or a child's name. Unfortunately, these types of
passwords can easily be hacked.
Webopedia's 'Did You Know...All About Phishing'
It is becoming increasingly common to tune in to
the news or load your favorite news Web site and read about yet another
Internet e-mail scam. An e-mail scam is a fraudulent e-mail that appears
to be from a legitimate Internet address with a justifiable request .
usually to verify your personal information or account details.
Twishing: Beware of the Latest ID Scam
Every time a new communication method becomes
popular, fraudsters look for a new way to commit identity theft. One of
the latest popular scams is "twishing." Frequently
Asked Questions about the Security Freeze
If an individual consumer reporting file is frozen
and an imposter applies for credit in that individual's name, a creditor
likely would deny the imposter's application, preventing an instance of
identity theft.
Equifax Credit Report FAQ: Placing A Security Freeze
Discover how a security freeze can help you take
more control over your Equifax Credit Report. |
