If you suspect you’ve been targeted by fraud or you simply want to strengthen your financial security, there’s one step you can take today that makes a real difference: freeze your credit with all three major credit bureaus. It’s quick, free, and one of the most effective ways to protect yourself from identity theft.
According to the Identity Theft Resource Center, more than 350 million people were affected by data breaches in recent years. With cybercrime continuing to rise, now is the time to safeguard your financial accounts and personal information.
This guide walks you through the basics of fraud alerts, credit freezes, and how to better protect your household’s sensitive data.
Fraud Alerts: An Extra Layer of Protection
A fraud alert is a free notice you can place on your credit file through any of the three major credit reporting agencies: Equifax, Experian, or TransUnion. When a fraud alert is active, lenders must take extra steps to verify it’s really you applying for credit. This makes it harder for scammers to open accounts in your name.
Types of Fraud Alerts
The Federal Trade Commission recognizes three kinds of alerts:
1. One‑Year Fraud Alert
- Available to anyone who suspects fraud.
- Lasts for 12 months and can be renewed.
- Free.
2. Extended Fraud Alert
- Designed for confirmed identity theft victims.
- Requires an FTC identity theft report or official police report.
- Lasts seven years and is free.
3. Active Duty Alert
- Available for those serving on active military duty.
- Helps protect credit while deployed.
- Lasts one year and can be renewed.
How to Set One Up
Just contact one of the three credit bureaus. The one you contact must notify the other two. Each bureau’s website provides simple instructions and contact options. Links to each bureau’s website can be found below:
Credit Freezes: One of the Strongest Security Tools Available
A credit freeze restricts access to your credit report entirely. This means no one, including you, can open a new line of credit until the freeze is lifted. You can temporarily “thaw” your credit anytime if you need to apply for a loan or credit card.
The FTC notes that credit freezes are:
- Free
- Long‑lasting (they remain until you remove them)
- Highly effective at preventing unauthorized accounts
Recommended Steps for Stronger Protection
To help keep your information safe, consider the following:
- Set up a fraud alert
- Use a credit‑monitoring service (We offer SavvyMoney® credit monitoring within online and mobile banking)
- Request an IRS Identity Protection PIN
- Freeze your credit at Equifax, Experian, and TransUnion
- Regularly review your account and credit activity
Don’t Forget Your Kids’ Credit
Children can be victims of identity theft, too, often without anyone knowing for years. That’s why federal law allows parents and legal guardians to freeze a child’s credit if they are under 16.
Child identity theft typically happens when a minor’s Social Security number and date of birth are stolen and misused. Freezing their credit now helps ensure they have a clean credit history when they need it later.
Stay Proactive. Stay Protected.
As cybercrime continues to increase, taking simple steps, like placing a fraud alert and freezing your credit, can make a major difference in protecting your financial future. And remember, we are here to help you navigate these tools and stay secure.
For more information, visit SavvyMoney’s guide on fraud alerts and credit freezes: https://education.savvymoney.com/credit/how-to-use-fraud-alerts-and-credit-freezes/