One can hardly open the paper or click on the headlines without encountering another report of a major data breach.
Our overwhelming dependence on electronic information and digital transactions comes with a whole new series of risks. On balance, the tradeoff is worthwhile, but there are steps each of us should take to minimize the odds of being victimized by the inevitable theft of our personal information.
One of the simplest but most impactful steps you can take is to place a freeze on your credit file with the major reporting bureaus. It only takes a few minutes, can easily be lifted and will significantly limit the ability of a hacker to access your record for illicit purposes. It is well worth the minimal effort.
A credit or security freeze prevents potential lenders from accessing your credit file. When you apply for a loan, the lender will typically request a report from one or more credit agencies detailing your credit history and a version of your FICO credit score. If a freeze is in place, the lender’s inquiry will be denied with a notification that the file is frozen, making it much more difficult for a fraudster to open a bogus account in your name. The credit bureaus are required under federal law to offer a security freeze at no cost.
It is also simple to unfreeze or “thaw” your credit file if you intend to apply for new credit like a home mortgage, credit card or car loan, and simply reinstate the freeze once the transaction is complete.