In the wake of the recent Equifax data breach that compromised the personal information of up to 143 million people, credit fraud has once again become top of mind for many consumers. While industry experts will say that it’s virtually impossible to fully protect yourself against identify fraud, which can include things like someone obtaining a drivers license in your name, there are steps you can take to protect yourself from credit fraud.
Credit Report Security Freezes – a Simple Step to Protection
One of the easiest steps is to establish security freezes at each of the three credit bureaus. These are the organizations that track your credit history and assign your credit score, which then financial services companies like credit cards and banks, as well as apartment rental agencies and car sales companies, use to determine whether to extend you credit.
A security freeze on your credit report tells the credit bureaus not to release your credit information to anyone who requests it other than you, which will be a red flag to any inquirer and most likely stop the credit from being fraudulently issued. When you do need to obtain credit for yourself, you’ll need to lift the security freeze so the company you’re applying with can access the information they need to approve your application. You can then, of course, reestablish the security freeze.