Security Freeze vs Fraud Alert
October 15, 2007
Identity theft has finally started getting the attention it’s been begging for. As people become more aware of this crime, they’ve brought pressure on politicians and the credit reporting agencies to make changes. In the past, every state had their own laws regulating security freezes. On November 1, 2007, everyone can put a security freeze on their credit report.
What’s the difference between a security freeze and a fraud alert?
A security freeze completely shuts off anyone from opening new credit in your name - even you. The freeze makes it impossible for anyone to access your credit report. It stays in place until you remove it. You have to freeze your credit with all three credit reporting agencies at a cost of $10 each. To get the freeze temporarily removed, it’s another $10 each. If you’ve been a victim of identity theft, you can get a credit freeze for no charge. The fees vary by state, but $10 is the most common.
A fraud alert allows you to take out new credit or to let someone check your credit. The way it provides protection for you is this - you will receive a confirmation phone call at the number you gave before a new credit account can be opened. A fraud alert lasts for 90 days. To keep one in place, you’ll need to renew it quarterly. The cost for this is nothing - it’s free.
How to freeze your credit report
- Send a letter to each credit reporting agency requesting the freeze - preferrably a certified letter
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Include your name, address, Social Security Number.
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Include a check or provide a credit card number and expiration date to pay for the fees.
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Provide proof of residence such as your driver’s license, student ID card, utility bill, etc.
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You’ll receive a PIN number - keep that safe and somewhere where you can find it later
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To remove or thaw the freeze, write to all three credit reporting agencies requesting the freeze be removed. You’ll need your PIN for this.
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It can take three business days or more after receipt of your letter for the freeze to be removed. If you lost your PIN, it can take even longer.
Because it can take a while to freeze and unfreeze your credit, it’s best to use this if you know you won’t be applying for any new credit, getting a new job or moving in the near future.
How to place a fraud alert
Placing a fraud alert is considerably easier than a freeze. All you have to do is call one of the credit reporting agencies and request a fraud alert be placed on your file. Whichever credit agency you call will notify the other two agencies so that they can update you in their files.
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Equifax: 1-800-525-6285
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Experian: 1-888-397-3742
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TransUnion: 1-800-680-7289
A fraud alert will prevent you from getting instant credit which is usually offered at stores. An offer for instant credit usually sounds like this, "If you sign up for our Visa card today, you’ll get 10% off your purchases." Instant credit is an identity thief’s favorite kind.
The method you choose to protect yourself depends on your circumstances at the moment. Either one works well. Neither of them will have any effect on your credit score.
Why do the credit bureaus make it almost if not completely impossible to remove a security freeze once some poor soul like myself has forgotten and/or misplaced his PIN’s? I can find no number to call to speak to a human to solve this issue. How can our government permit such shoddy service when it is the one who mandated these laws for the protection of its citizens?
John, I feel your frustration on this. Credit bureaus have a bit of a monopoly on our credit lives and tend to play by the rules that suit them best. Customer service isn’t one of their strong suits. (to put it mildly)
Did you try this page on Experian’s site - It has a link to request your PIN reminder.
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Here’s how Equifax says you need to do it:
How do I permanently remove a state law or Equifax voluntary security freeze on my Equifax credit file?
To permanently remove your state law security freeze from your Equifax credit file you must write to us at the address below and include the following information:
To permanently remove the security freeze on your Equifax credit file please send the information above to the address below.
Equifax Security FreezeP.O. Box 105788
Atlanta, Georgia 30348
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TransUnion says this:
If you lose the PIN that was issued to you when you added the Security Freeze to your credit file, you may request a new one in writing. Please provide proof of identification, such as a copy of your driver’s license, passport, birth certificate or other proper identification forms. A fee may be required for residents of some states for a replacement PIN.
For additional information on replacing your lost PIN, call our toll free telephone number, 888-909-8872.
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Looks like you’ll have to be writing letters - I suggest you send them certified mail.
Hopefully you don’t need your credit unfrozen right away - this process looks like it could take several weeks or longer. Freezes aren’t always a great solution and don’t give you complete protection from all kinds of identity theft. I read a news article this morning about fake tax returns being made on some college students. A credit freeze can’t prevent that from happening.
Good luck!
I ordered something on the internet with my credit card and gave my address and phone # for shipping info. from a place that I thought was reputable. I then got 2 e mails, one from Quicken and one from Blockbuster thanking me for opening an account, which I never did. I e mailed them back to tell them to take me off their list. Blockbuster responded but Quicken didn’t. I cancelled my credit card,on which was one small charge from Blockbuster. I notified Experian and put myself on a 6 month security and fraud alert. My question is whether to do a security freeze. I understand that with a fraud alert, if anyone tries to open a credit account in my name, that they call me first. Do you think I should do a security freeze too?
I’m glad you put a fraud alert on your credit file right way. Just keep in mind it will go for 3 months - not 6 months. You’ll have to remember to renew it in early September.
A credit or security freeze will block anyone from applying for new credit - even you. If you don’t need to get new credit for the next year or so, then you could go ahead and do the freeze. It will cost you about $10 at each credit bureau (depends on your state) to freeze and the same amount to undo the freeze. And by all means - keep your PIN in a safe place where you know where it is!
Neither a fraud alert or credit freeze will do have any affect on your credit score.
The fraud alert could be just fine for now. Also order your free credit reports from http://annualcreditreport.com if you haven’t already. It’s good that you canceled that credit card account and put your card company on notice that you could have a problem. I hope they reimbursed you for the Blockbuster charge.
I’m still a BIG fan of the ‘Shopsafe’ feature my Bank of America credit card has. It lets me create a temporary account number with a specified limit that I can choose. I always use it when I shop online. No one ever gets my real number. I think Discover has a similar feature.