-Source-Forbes-
The term security freeze, commonly referred to as a credit freeze, is a restriction that prohibits a consumer credit reporting agency from disclosing the contents of a credit report to any person requesting the data. Without that file, lenders can’t assess your creditworthiness and will not extend credit to you – or anyone claiming to be you. In effect, a credit freeze prevents new credit accounts from being established in your name. According to the FTC, a fraud alert will tell any business that runs your credit that they should check with you before opening a new account.
The legislation, which was signed in May and takes effect today, requires that Equifax, Experian, and TransUnion, the three credit bureaus, place a security freeze on consumer accounts, at no cost to the consumer, upon receiving the request. It also requires free year-long fraud alerts for those interested. If you’re active duty military, the credit reporting agencies must also offer free electronic credit monitoring within a year.
Identity theft accounted for $16.8 billion in losses spread across 16.7 million victims in 2017, according to Javelin Strategy and Research. With identity fraud victims reaching an all-time high, it’s prudent to take the steps to protect your financial assets. Read more
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