Most people think that the most secure way to prevent identity theft is to fill out a no-cost fraud alert or sign up for a fee-based credit monitoring service. The problem is that if your social security card is stolen, the thief can still open a credit card fraudulently under your identity. In fact, about 1/3 of the estimated 10 million cases of ID theft in the USA last year involved stolen social security card numbers. This is not good news. Which leads us to the third method that is more secure than these two. It’s called a credit freeze.
Freezing your credit means access to your credit reports and credit scores cannot be shared with potential creditors or lenders without your express permission. This translate to some thief not being able to fraudulently open a new account in your name.
The downside of a credit freeze is that it cost money to initiate and it costs money to thaw. So if you are a young person just starting out, it may not be the most convenient and/or economical choice. If you are more established with your credit, this may be an excellent choice.
A one time fee of $10 will freeze your credit with each credit bureau. So it costs $30 for all three credit bureaus. There is no charge for ID theft victims. To place a credit freeze, write to the addresses listed below. Be sure to include your name, current and former address, social security number and date of birth. Send your check and information by certified mail.
- Equifax Security Freeze, PO Box 105788, Atlanta, GA 30348
- Transunion Security Freeze, PO Box 6790, Fullerton, CA 928354
- Experian Security Freeze, PO Box 955, Allen, TX 75013
One more thing: Not all states have passed the credit freeze law. About 39 states so far have this law.
Good luck.
November 21st, 2007 at 1:55 am
Hi Alex, thanks for those address’s they are really useful to know, I just read a story that the UK goverment has lost to CD’s with 25 million UK citizens, names, address’s, National insurance numbers, childrens names, some bank details – outrageous!!
This info you have outlined is just what they need
November 22nd, 2007 at 3:45 am
Its an excelllent concept that you have outlined, you mentioned the cost to freeze as $10.00 but you didn’t mention the cost to thaw, I’m guessing its the same cost, so $60.00 all in is not to bad, are these three the ‘master’ credit companies or do others need approaching?