CREDIT FREEZING 101

The Federal Trade Commission recently reported that over 2 million consumers lost more than $5.8 billion to fraud in 2021. This is a 70% increase when compared to 2020. One of the most powerful tools to protect yourself against fraud is to freeze your credit. The credit freeze, also known as a security freeze, prevents fraudulent loans and credit accounts while allowing the consumer restricted access to their credit reports. Credit bureaus must provide freezes to consumers at no cost and with no impact on scores under US law. If you are not planning on applying for credit or loans in the near future, a credit freeze can provide peace of mind. If you have a child under 18, a credit freeze can protect them from fraudulent accounts and identity theft. 

    In order to freeze your credit, you must contact all three credit bureaus:

    •    Equifax Credit Report Services / (800) 349-9960

    •    Experian Security Freeze Center / (888) 397-3742

    •    TransUnion Credit Freeze Website / (888) 909-8872

Credit freezes can be lifted and reinstated in as little as 30 minutes when you need to use your credit. If you are a victim of credit fraud, take the following steps:

    •    File a police report with your local police department

    •    Change your banking PIN number and passwords

    •    Dispute unauthorized or unfamiliar transactions. This should be made in writing to the credit bureau. They will have 30 days to remove purchases after an investigation.

    •    File a complaint with the Federal Trade Commission

    •    Place a fraud alert on your credit report. This should be done at the three credit bureaus (Equifax, Experian, and TransUnion)

Although credit freezes are a great tool against identity theft and fraud, consumers must still be vigilant with their personal information. Never share your personal information and be on the lookout for phishing scams.

Office of Consumer Affairs and Business Regulations. 2022 July 28. Know When to Freeze Your Credit. Mass.gov