Identity and personal information theft are frequently in the news. Awareness and being proactive can help you protect your personal data and avoid financial loss. The following free protections add a measure of security in a hazardous digital world.
Federal Credit Card Protection Laws
Credit cards offer strong consumer protection against fraudulent charges. According to federal law, if your credit card account number is stolen, you are not liable for any unauthorized charges. If your physical card is stolen, your liability is limited to just $50.00.
Access to Credit Reports
Keeping an eye on your credit report is a critical way to detect identity theft early. The three major credit bureaus—Equifax, Experian, and TransUnion—provide free weekly access to your credit reports through AnnualCreditReport.com . Reviewing these reports regularly allows you to spot unauthorized activity or incorrect information in your credit file.
Credit Security Freeze
When you apply for credit, a lender will view your credit report. A security freeze secures your credit report so it cannot be accessed without your authorization. This helps prevent someone from opening new credit accounts under your name.
Federal law mandates that the three major credit bureaus offer credit freezes at no cost. To place a freeze, you need to contact each bureau individually:
- Equifax https://www.equifax.com/personal/credit-report-services/credit-freeze/
- Experian https://www.experian.com/freeze/center.html
- TransUnion https://www.transunion.com/credit-freeze
When you request a credit freeze via phone or online, the credit bureau is required to implement it within one business day. If you need to temporarily lift or remove the freeze, they must do so within one hour of your request. If you submit your request by mail, it may take up to three days.
Access To Your Bank Reports
In addition to your credit report, it’s important to monitor your banking activity file. Services like ChexSystems and TeleCheck compile consumer reports of overdrafts and negative account activity. You have the right to receive a free copy of your file from these services at least once a year. An annual review of these reports can alert you to any incorrect information. Find out more at ChexSystems https://www.chexsystems.com/ and TeleCheck https://getassistance.telecheck.com/
IRS Identity Protection (IP) PIN
Tax-related identity theft is another area of potential theft. The IRS offers an Identity Protection PIN (IP PIN) that adds a layer of security to your tax filings. An IP PIN prevents someone else from filing a tax return under your name. You can request an IP PIN through the IRS website, and the IRS will issue a new PIN each year to further secure your identity. The IRS web page to apply for an IP PIN is https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
Act Now
Take advantage of these free tools to reduce your risk of identity theft and protect your financial information.
Source: “How to place or lift a security freeze on your credit report.” https://www.usa.gov/credit-freeze , retrieved 8/22/2024
During the preparation of this work the author used ChatGPT 3.5 in order to make it informal and concise. After using this tool/service, the author reviewed and edited the content and takes full responsibility for the content of the article.
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