Security Breach – Our Advice

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. 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.

The problem with these services is that they only alert you AFTER criminals have fraudulently opened new accounts.

If you want to STOP the the fraudulent activity BEFORE it happens, they best course of action is to employ a CREDIT OR SECURITY FREEZE with all three credit agencies. The credit agencies have been reluctant to share this fact because it disrupts the low-friction credit system. By default, your credit files at Experian, Equifax, and TransUnion are open and unsecure. 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.

This easy system puts you at risk. Given the sheer number of recent data breaches, it’s very likely that your personal information—name, birth date, Social Security number—has already been exposed. A hacker can use that data to steal your identity and obtain new credit without your knowledge.

A security freeze locks your credit file at each bureau with a special PIN that only you know. That PIN must be used in order for anyone to access your credit file or add new credit in your name.

It is imperative that you freeze your credit immediately at the big three credit bureaus—Experian, Equifax, and TransUnion.

A security freeze offers greater protection than the highly advertised credit monitoring and fraud alert. Credit monitoring does not stop a thief from opening a new account in your name. Instead, they alert you of a potential fraud after the fact—if their monitoring claims hold true. That is not good protection against identity theft. You’ll still have to put in the time to get your file corrected.

The same is true for LifeLock, a company that has been repeatedly fined by the government for unfair and deceptive trade practices. LifeLock alerts you after an identity theft has occurred instead of preventing it from happening.

The other option, fraud alert, offers more protection than credit monitoring but does not provide you with full security. A fraud alert can be placed on your account following any fraudulent activity and requires a business to verify your identity before issuing any new credit. A fraud alert, however, expires after 90 days and needs to be continuously renewed. That is not convenient, so avoid this approach.

A security freeze gives you complete control of your credit file and is the absolute best way to protect your credit and identity. Unlike credit monitoring or fraud alerts, a security freeze stops identity theft from happening rather than alerting you to fraud after it has occurred.

To make it easy for you to protect yourself from Identity theft, I’ve included the Security Freeze Form links and phone numbers below for each of the big three credit bureaus. My wife, Steph conducted a test run on each today and her tips and tricks are outlined for you as well.

Please feel free to share this valuable information with your loved ones.

 

Equifax

Use the online form on this one! Their online form was the easiest and quickest to complete and you can print a receipt that included you 10 digit pin. Took less than 5 minutes.

The phone system is clearly overloaded and cut off on our trial run today without issuing a pin. (YIKES!) If you do use the phone, press the buttons rather than speak your answers to avoid having to repeat yourself. That gets annoying. The phone call took about 15 minutes and didn’t issue a pin!

PHONE: 866-349-5191 (Press 3)
FEE: NO CHARGE (may be for a limited time due to their breach)

Equifax Security Freeze Online Form

Experian

Online form is best here, too. The phone version actually read off an exhausting list of states and the fees charged for each. I’m not even kidding. Fifty Nifty United States song is still echoing in my head.

When online, the form went smoothly. Be careful of the security questions….I got tricked on a mortgage question. Bottom line…If it asks you about a mortgage you secured in 2015 but you’ve since paid off your loan…Answer ‘none of the above”. I was rejected and told I have to mail in my request. It gave me a printable instruction sheet that I just had to write my social security number on and mail with a check. So it all worked out in the end. 😉

PHONE: 888-397-3742
FEE: $11.01

Experian Security Freeze Online Form

 

TransUnion

The phone system here was actually really well done. But honestly so was the online process. Ultimately, I would opt for the online option here, too because the printout at the end is super convenient to keep for your records. AND they sent me a receipt for the fee instantaneously. I respect that. Online, you do need to go through a few extra steps and create an account before you can complete your Security Freeze form, though. Makes sense to me…all in the name of security, right?

PHONE: 888-909-8872
FEE: $10.00

TransUnion Security Freeze Online Form