In short, if you have already been victimized by identity theft (fraud involving existing credit or debit cards is not identity theft), it might be worth paying for these credit monitoring and repair services (although more than likely, you are already eligible for free coverage thanks to a recent breach at any one of dozens of companies that have lost your information over the past year). The most you can hope for from a credit monitoring service is that they give you a heads up when ID theft does happen, and then help you through the often labyrinthine process of getting the credit bureaus and/or creditors to remove the fraudulent activity and to fix your credit score. As I discussed at length in this primer, credit monitoring services aren’t really built to prevent ID theft. If your response to this breachapalooza is to do what each of the breached organizations suggest - to take them up on one or two years’ worth of free credit monitoring services - you might sleep better at night but you will probably not be any more protected against crooks stealing your identity. ![]() Office of Personnel Management gone missing, crooks already have access to the information needed to open new lines of credit or file phony tax refund requests in your name. Even without the help of mega breaches like the 80 million identities leaked in the Anthem compromise or last week’s news about 4 million records from the U.S. To stay up-to-date on the latest financial security tips, subscribe to the SNB newsletter and get monthly updates delivered to your inbox.Click here for a primer on identity theft protection services.Ī seemingly never-ending stream of breaches at banks, healthcare providers, insurance companies and data brokers has created a robust market for thieves who sell identity data. So the most important thing is to remain vigilant and monitor all of your financial accounts on a frequent basis. There are many types of identity theft besides credit fraud (including government benefits, insurance, phishing, card skimming, romance scams, etc.). It’s important to remember that while a security freeze is a great method for prevention of identity theft, it cannot guarantee you will not be a victim of identity theft. The new federal law also extends the length fraud alerts must remain on your credit reports, from 90 days to one year. ![]() It alerts lenders that your data may have been compromised, and that they’ll need to take extra steps to verify your identity before approving you for a loan or new credit account. What’s the difference between a Credit Freeze and a Fraud Alert?Ī “fraud alert” is less severe than a freeze. Is a credit freeze the same as a fraud alert?.What's the difference between a credit freeze and a credit lock?.Am I able to freeze other family members' credit reports, too?.Can I still order a free annual credit report while my file is frozen?.Will a credit freeze affect or lower my credit score?.Can I open new credit accounts or apply for a loan while my credit is frozen?.Who can still see my credit when it's frozen?.When and how do I lift my security freeze?. ![]() When should I consider a credit freeze?.However, before placing a freeze of your own, you should be aware of all the details that freezing your credit involves. 21. Credit freezes were already free in Iowa and Nebraska (under state laws passed earlier this year), but now residents in South Dakota- and states across the nation - can also lock down their credit for free.Ī credit freeze can be one of your most effective lines of defense to protect yourself from fraud and identity theft. Anyone can now freeze and unfreeze their credit for free, thanks to a new federal law that went into effect on Sept.
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