How to Protect Your Credit from Data Breach and Identity Theft

With the recent data breach, we have put together a checklist to help you preserve your personal information and protect your credit.

What you will discover:

1. Examine your credit records
2. Consider putting a credit freeze or fraud alert in place.
3. Inform the authorities about identity theft.

If you were affected by the recent Capital One data breach, you may be wondering how to keep your sensitive information safe. It might be frightening to consider the idea of your identity being stolen, but there are instant measures you can do to preserve your personal data and protect your credit right now.

1. Examine your credit records

Checking your credit reports from the main credit reporting companies (Equifax, Experian, and TransUnion) will help you keep on top of any activity in your files. You may acquire a free copy every year by visiting annualcreditreport.com, or you can join up for a credit monitoring program to be notified of changes more quickly. Continue to constantly check your current credit card and bank accounts in the coming months for any expenditures you do not recognize—abnormal behavior might suggest identity theft.

2. Consider putting a credit freeze or fraud alert in place.

You typically have two alternatives for safeguarding yourself against identity theft, depending on your present intentions to apply for loans or credit:
Request that your credit be frozen.

If you are not looking for loans or credit, the best method to protect yourself is to use your legal right to seek a free credit freeze from each of the three major credit bureaus: Experian, Equifax, and TransUnion. A credit freeze, also known as a security freeze, totally disables access to your credit report, leaving you with a PIN (personal identification number) that only you have access to. A credit freeze makes it harder for identity thieves to create new accounts in your name since most creditors want a copy of your credit report before opening a new account. However, it will not prevent a thief from making changes to existing accounts.

Alternatively, you can go to each credit agency’s website and fill out numerous online forms. Your name, address, date of birth, Social Security number, and other personal information will be required. As of September 21, 2018, there are no costs for adding or removing a credit freeze.

Each credit reporting organization will send you a confirmation letter providing your unique PIN or password after receiving your Credit Freeze Request. Keep this information in a safe place in case you decide to lift the freeze in the future.
Add a fraud alert to your files.

If you intend to apply for credit, consider issuing a fraud alert rather than a complete credit freeze. This allows people to see your credit record while alerting prospective creditors that you may be a victim of identity theft. A fraud alert is free and may be set up by calling any of the three major credit bureaus:

1-800-349-9960 for Equifax

1-888-397-3742 Experian

TransUnion may be reached at 1-888-909-8872.

If you contact one bureau, they must notify the other two. However, contacting all three is always a good idea, if only for your own peace of mind.

Fraud alerts are classified into three types:

Initial Fraud Alert — If you are concerned about identity theft but have not yet been a victim, this fraud alert will protect your credit for 90 days from unauthorized access. If your wallet, Social Security card, or other personal, financial, or account information is lost or stolen, you should consider placing a fraud alert on your file.

Extended Fraud Alert – Designed for identity theft victims, an extended fraud alert can safeguard your credit for seven years.-

Active Duty Military notice — This fraud notice is valid for one year and is intended for service members who wish to safeguard their credit while away.

3. Inform the authorities about identity theft.

If you observe fraudulent activity on your accounts, you should take the following extra steps:

Filing a police complaint provides you with specific legal rights when reporting identity theft to creditors or credit agencies.

File a complaint with the Federal Trade Commission – The FTC utilizes complaints to monitor fraud tendencies, which may aid in the identification and prosecution of identity thieves.

Notify your creditors of the identity theft – You should cancel any accounts that were established fraudulently, as well as any accounts that were tampered with. An Identity Theft Affidavit may help creditors conduct a more official investigation into unauthorized use of your identity.