Lock Out Identity Thieves with a Credit Freeze

Identity theft remains the number one consumer complaint  reported to the Federal Trade Commission (FTC). And if you are lucky enough to live in sunny Florida, your chances of becoming a fraud victim are higher than anywhere else in the nation.

As a certified fraud examiner, I have seen many different types of fraud cases over the years. None hits so close to home for clients as identity theft, which can be one of the most emotionally, if not financially, damaging fraud situations. That’s why it’s so important to take steps to protect yourself before you fall victim.

According to a study by the U.S. Bureau of Justice Statistics:

• An estimated 17.6 million people, or about 7 percent of U.S. residents age 16 or older, were victims of at least one incident of identity theft in 2014.
• Individuals with an annual household income of $75,000 or more had the highest prevalence of identity theft (11 percent), compared to those in all other income brackets.
• In 2014, 85 percent of people took actions to prevent identity theft, such as checking credit reports, shredding documents with personal information and changing passwords on financial accounts.

Thieves can infiltrate your identity in many ways, including filing a false tax refund claim in your name, opening consumer credit accounts, and withdrawing cash from your bank account. Any of these attacks can be difficult and time consuming to identify and repair.

In an effort to address the growing threat of tax-related identity theft, the IRS has introduced the six-digit Identity Protection PIN (IP PIN), which can help prevent the fraudulent use of an individual taxpayer’s Social Security number on federal income tax returns. To learn more and apply for an IP PIN, visit the IRS website.

For general identity theft protection, there are plenty of companies these days offering ID theft monitoring services. While these services can help you to detect fraudulent activity, they often come with high monthly fees. Many credit monitoring services will notify you with a fraud alert only after someone has opened an account in your name.

A more pro-active approach is to contact the three national credit bureaus and put a lock or “freeze” on your credit. Once you have locked your credit, only existing creditors can make inquiries. No new accounts can be established in your name. While not a guarantee that you won’t fall victim, a credit freeze does offer more protection than a fraud alert.

Locking your credit entails contacting each agency by phone and paying a small fee (typically $5 to
$10). The agencies will ask you for your name, address, date of birth, Social Security number and other personal information.

Each credit reporting company will send you a confirmation letter with a PIN (personal identification number) or password after receiving your credit freeze request. Don’t lose this information; you will need your PIN or password in the event that you want to lift the freeze.

After your credit has been locked, you will need to plan ahead to unlock or “thaw” your file before opening a new account such as a car loan or utility account.

To place a freeze on your credit, contact each of the credit bureaus below.

• Equifax — 1-800-349-9960
• Experian — 1‑888‑397‑3742
• TransUnion — 1-888-909-8872

Contact me to learn more about how you can reduce your risk of identity theft. According to the statistics, it’s only a matter of time.