How to prevent identity theft with a security freeze

In 2003,Senator Debra Bowen of California proposed the first law incorporating a security freeze. It was passed by the California legislature later the same year. California was the first state to enact such a law and it has made a big difference in making the average person feel more secure. Other states have followed suit, enacting similar laws as well.

A security freeze allows you to "freeze" your credit report, and to control who gets access to that information on your credit report. When a company or person requests your credit report, they are first told there is a freeze, then you are contacted and you get to choose to allow or not allow your credit report to be released to that person or company. The benefits of a security freeze is that if someone tries to open a new account or credit card in your name, the credit reporting agencies have to contact you and get your permission before releasing your information. Now, you become aware immediately if your personal information is being used to open accounts without your knowledge. If you want to open up a new credit card, or get a mortgage to buy a house, you must contact the credit reporting agencies and temporarily allow access to your credit report. If a thief applies for credit with credit companies that do not require access to your credit report, they may still be able to get that new credit card or loan. But this would be highly unusual.

There are two main ways to set up security freeze. You can do it on-line (see links at the bottom of this article) or you can do by it traditional mail. In some cases, you will need to do it both ways. You can set up a temporary security freeze that lasts for 5 years, or you may set up a permanent security freeze. To set up a permanent freeze, you can do it online first, then fill out the form they give you and mail it to the address they give you.

Here are some other ways to prevent identity theft. You may apply for a prescreen opt-out through the 4 main credit reporting agencies. This ensures that you will not receive pre-approved offers from credit card companies or insurance companies. Put your name, address, and phone number on the direct marketing association's do-not-mail list and on the do-not-call list. Doing these things alone will stop you from receiving so much junk mail, telemarketing calls during dinner, and will lessen the chance that a company or person will have access to your address and phone number. Many identity theft insurance companies do these items for you as part of the monthly fee they charge you. But you can do it yourself for free. Remember to ask companies you do business with not to sell your name and address. Keep your home address, phone number, social security, and other personal information private. Refuse to fill out contest forms or forms to win a prize unless it's just a local company who will keep your information private. For example, say your local bank is giving away a free pre-paid credit card with a $1000 value, and any customer can apply. This is much better than filling out a form at your mall to win a cool sports car. Who knows where that sports car contest form is going, and what they'll do with your personal information? If you can afford it, consider getting a post office box mailing address or other paid mail box address. Use this address as much as possible, and you will cut way down on the possibility that your home address will get into the wrong hands.

There are many websites and companies advertising to “get your free annual credit report” for you. They will do it for free, but you shouldn't always trust them not to use your personal information. You can do this yourself, too. See the links at the bottom of this email for the web address to the only website that all four major credit reporting agencies will endorse. This is a secure website that does not use your personal information without your knowledge, except to send your annual credit report. By the way, the four major credit reporting agencies are Experian, Transunion, Equifax, and Innovis, sometimes known as CBCInnovis.

Here are some other things to keep in mind. You need to contact your own state government to see if there is a law allowing a security freeze in your state. Not all 50 states have these types of laws in place, but most do. Start looking with your state's secretary of state website or call them on the phone. If they don't do this here, they will direct you to the correct website or department who can help you. Some states' websites even have sample form letters you can fill out and send in. It is free in some states to set up a security freeze. In other states, there are small fees to pay. Do all your research before setting up your security freeze. Also, contact your credit card companies and ask them to not automatically raise your credit limit. If your information does get into the wrong hands, the thieves will have less credit to spend. For most credit card companies, you are allowed to request a credit limit increase at certain time intervals. If you care at all about your financial security, personal identity, and peace of mind, a security freeze is important to set up. This way, credit companies and identity thieves are much less likely to take advantage of you.