Prevent ID Theft: 8 Tips on Credit Freezes, Locks, and Alerts

Every year, more people become victims of identity theft, which can cost money and time to resolve. A study by Javelin Strategy & Research found that 16.7 million Americans were victims in 2017. That’s an 8% increase from the prior year and a record high.

If you worry about becoming an ID theft victim, there are ways to fight back. The nationwide credit reporting agencies—Experian, Equifax, and TransUnion—give consumers several options for restricting access to their credit data.

I’ll cover eight tips you need to know before getting a credit freeze, credit lock, or a fraud alert. Plus, you’ll learn the warning signs of identity theft so you can act quickly to block fraudsters from wreaking havoc in your financial life.

Criminals only need a few data points, such as your name, address, Social Security number, or credit card number, to steal from you.

8 Tips for Getting a Credit Freeze, Lock, or Alert to Prevent ID Theft

1. Placing a credit freeze is now free.
2. Freezing your credit never hurts your scores.
3. You need three freezes for full protection.
4. Frozen credit reports can still be accessed.
5. Thawing your credit may take time.
6. Credit locks are more convenient than freezes.
7. Credit locks typically come with a fee.
8. Fraud alerts now last longer.

Before we cover more detail on each of these credit tips, here's a quick review of what identity theft is and why thieves are after your personal data.

Why Thieves Want Your Personal Information

Here are some of the most common types of identity crime that occurred in 2017:

• Credit card fraud is the most common type of theft, which happens when a criminal uses stolen credit card information to make fraudulent purchases. 
• Imposter scams are when a criminal pretends to be someone you know on email, social media, or by telephone in order to get your identifying information. 
• Mail identity theft has been around a long time and it happens when someone steals your mail or changes your mailing address in an attempt to get your sensitive information.
• Medical identity theft happens when someone steals your insurance or personal information to obtain medical goods or services. 
• Mortgage fraud occurs when parties involved in a home loan—such...

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