How to protect yourself from identity theft
It's free and only takes a few minutes
Good morning!
Today, I wanted to share a simple, free way to protect yourself from identity theft.
And it only takes a few minutes.
I learned this lesson the hard way...
Back in 2014, I was going through our mail one day and found something addressed to me from Best Buy.
It was a form letter congratulating me on opening my Best Buy credit card account.
But there was a problem!
I never opened a Best Buy credit card account.
This was the first of several similar letters I received from different companies over the next few days.
Thankfully, we didn't lose any money.
But I had to spend many hours of my time working to get this sorted out.
Police reports. Phone calls. Documentation. More phone calls.
It was a mess I wouldn't wish on anyone.
To prevent this from happening to you, your family, and your friends, here's what I recommend...
While many people pay for credit monitoring services, you can place a security freeze on your credit reports for free.
This is one of the most effective ways to prevent identity theft and financial fraud.
What is a credit freeze?
A credit freeze prevents new accounts from being opened in your name by blocking access to your credit report.
When someone tries to apply for credit in your name, the lender can't access your report to check your credit (because it’s frozen), and will typically deny the application.
You can easily lift the freeze temporarily when you need to apply for credit yourself.
This is completely free to setup. And free to maintain.
Freezing your credit is quick and easy
Thanks to federal law, all credit bureaus must offer free credit freezes.
The process typically takes only 5-10 minutes to setup per company.
Here’s are the big 3 credit bureaus where you should freeze your credit:
Equifax:
Or call 888.298.0045
Experian:
Or call 888.397.3742
TransUnion:
Or call 800.916.8800
Lesser-Known Credit Bureaus to Consider Freezing:
You'll need to provide personal information including your Social Security number, address history, and proof of identity.
Make sure to safely store the PINs or passwords they provide – you'll need these to lift the freeze in the future.
If you have children, you can also place free credit freezes on their reports – an important step since children's Social Security numbers are particularly valuable to identity thieves due to their clean credit histories.
Monitoring your credit report
While credit freezes help prevent new account fraud, it's still important to regularly check your existing credit reports for suspicious activity.
You can get free weekly credit reports from the three major bureaus through AnnualCreditReport.com – the ONLY official source authorized by federal law.
What about paid services?
Services like LifeLock, Identity Guard, and Aura offer identity theft protection for around $10-30 per month.
These services provide convenience through:
Automated credit monitoring
Identity theft insurance
Dark web monitoring
Social Security number tracking
Lost wallet assistance
Just remember that their core credit monitoring features can largely be replicated for free through credit freezes and regular checks of your credit report.
The insurance these services offer may also be redundant with coverage you may already have through your homeowner's or renter's insurance policy.
Additional steps:
Consider placing a fraud alert, which requires lenders to verify your identity before extending credit
Stop those pre-approved credit offers at OptOutPrescreen.com
Review your Social Security earnings statement annually at SSA.gov
Monitor your bank and credit card statements regularly
You can also use a tool like Monarch Money to consolidate and keep an eye on all your financial activity
Remember: A credit freeze won't prevent all types of identity theft, but it's one of the most effective tools for preventing new account fraud – which is often the most damaging and time-consuming to resolve.
Taking 30 minutes today to set these up could save you countless hours and potentially thousands of dollars.
Let me know if you have any questions about setting up your credit freezes or monitoring your credit report.
And please pass this along to your family and friends so they can protect themselves.
Yes, I’ve written about this topic before.
But it’s important and bears repeating…
Thanks for reading.
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Or you can:
Until next Wednesday,
Russ