That is not good protection against identity theft. Instead, they alert you of a potential fraud after the fact-if their monitoring claims hold true. Credit monitoring does not stop a thief from opening a new account in your name. It is imperative that you freeze your credit immediately at the big three credit bureaus-Experian, Equifax, and TransUnion.Ī security freeze offers greater protection than the highly advertised credit monitoring and fraud alert. That PIN must be used in order for anyone to access your credit file or add new credit in your name. A security freeze locks your credit file at each bureau with a special PIN that only you know. A hacker can use that data to steal your identity and obtain new credit without your knowledge. Given the sheer number of recent data breaches, it’s very likely that your personal information-name, birthdate, Social Security number-has already been exposed. It makes it easy and quick to obtain new lines of credit-you fill out an application, the lender checks your credit, and you’re approved if you meet the standards. By default, your credit files at Experian, Equifax, and TransUnion are open and unsecure. The credit agencies have been reluctant to share this fact because it disrupts the low-friction credit system. You can with something called a credit freeze or security freeze.
After each new “unprecedented” hack, you’re rushed into a free credit monitoring program that promises to watch your files and alert you to any unusual activity.īut is that enough to truly keep you safe? Shouldn’t you be able to stop criminals from fraudulently opening new credit rather than being alerted after the fraud has taken place? The headlines come at us constantly-143 million records leaked at Equifax, one billion exposed in a Yahoo breach, and 110 million records compromised at Target. Learn about a simple step you can take to protect your identity today. The latest data breach may have you worried about your personal information.