Freeze It Before They Use It: Protecting Yourself from Identity Theft

A few years ago, my wife became a victim of identity theft. Someone accessed her credit report and created an alternative identity of a Google engineer living in Georgia—neither of which was true! Then, without much trouble, they opened a couple of store credit cards and even secured a personal loan from Wells Fargo. When we discovered it, we rushed to close the fraudulent accounts. Shutting down the store credit cards was relatively easy, but the personal loan turned into a bureaucratic nightmare. Despite how quickly the thieves had opened it, my wife had to file a police report and visit a Wells Fargo branch multiple times just to prove it wasn’t her doing.

All of this could have been avoided with one simple tool—a credit freeze.

Why Identity Theft is No Joke

Imagine waking up one morning to find out someone took out a car loan in your name, racked up thousands on a credit card you didn’t even know existed, or filed a fraudulent tax return using your Social Security number. Identity thieves don’t need to break into your house—they just need a few key pieces of information to wreak havoc on your financial life.

And the worst part? You might not even realize it’s happening until it’s too late. That’s why proactive measures are key.

The Credit Freeze: Your First Line of Defense

A credit freeze is like putting a deadbolt on your financial front door. It prevents creditors from accessing your credit report, making it nearly impossible for identity thieves to open fraudulent accounts in your name. If they try, lenders simply won’t approve the new account—because they can’t see your credit history.

The best part? A credit freeze is free, easy to set up, and doesn’t affect your credit score. It just makes it a lot harder for criminals to misuse your personal information.

How to Freeze Your Credit in Three Easy Steps

1. Visit the Credit Bureaus You’ll need to request a freeze with each of the three major credit bureaus individually:

   Equifax: Security Freeze

   Experian: Manage Your Freeze

   TransUnion: Credit Freeze

2. Provide the Required Information You will need to create an account with each credit bureau before placing a freeze. The process usually requires verifying your identity with details like your Social Security number, date of birth, and address.

3. Secure Your Password While PINs are no longer required, you will need your account password to lift or temporarily unfreeze your credit when needed. Keep this information safe—losing it can make unfreezing your credit a hassle.

How and When to Temporarily Unfreeze Your Credit

While a credit freeze is a great way to protect yourself, there will be times when you need to lift it temporarily. Common reasons include:

• Applying for a mortgage, car loan, or credit card

• Renting an apartment (landlords often check credit reports)

• Setting up utilities or a new phone plan

• Applying for certain jobs that require a credit check

How to Unfreeze Your Credit

1. Determine Which Credit Bureau Needs to Be Unfrozen Not all lenders check all three bureaus. Ask which one they will be using so you don’t have to unfreeze all of them unnecessarily.

2. Visit the Credit Bureau’s Website

   Equifax: Security Freeze

   Experian: Manage Your Freeze

   TransUnion: Credit Freeze

3. Log Into Your Account You’ll need your password from when you created your account. If you’ve lost it, there are steps to recover access, but this could delay your credit application.

4. Choose the Duration You can lift the freeze permanently (not recommended unless you no longer want protection) or for a set number of days. Many people opt to unfreeze for a few days, just long enough for the credit check to go through.

Other Best Practices for Identity Theft Prevention

While freezing your credit is a great start, layering additional protections can further reduce your risk:

• Monitor Your Credit Reports Regularly – You can get a free credit report weekly from each bureau at www.annualcreditreport.com. (Checking it quarterly is a good idea.)

• Use Strong, Unique Passwords – Your dog’s name and “1234” won’t cut it. Use a password manager to create and store complex passwords.

• Enable Two-Factor Authentication – Adding an extra layer of security can make it significantly harder for criminals to access your accounts.

• Shred Sensitive Documents – Old bank statements, credit card offers, and tax forms should never go in the trash intact.

• Beware of Phishing Scams – If an email or phone call feels off, it probably is. Don’t click on suspicious links, especially in text messages, and never share personal information over the phone unless you’re 100% sure of the source.

Common Myths About Credit Freezes

Let’s clear up a few misconceptions:

“A credit freeze will ruin my credit score.” Nope. A freeze has zero impact on your credit score because it doesn’t affect existing accounts—just new ones.

“I won’t be able to apply for loans or credit cards ever again.” Not true! You can temporarily lift or remove the freeze when needed using your password.

“A fraud alert is just as good as a freeze.” Fraud alerts help, but they don’t block access to your credit file. A freeze is the stronger safeguard.

Prevention is Easier Than Cleanup

Recovering from identity theft is a nightmare—freezing your credit takes five minutes. If you haven’t done it yet, consider this your sign to take action today. And while you’re at it, check your credit reports, strengthen your passwords, and stay one step ahead of scammers.

Because in the end, financial security isn’t just about growing your wealth—it’s about protecting it from those who’d love to take it. So lock it down, keep an eye out, and sleep a little easier knowing you’re one step ahead of identity thieves.

The information shared in this article is intended only to provide general financial education, for informational purposes only. The information and opinions within should not be regarded as objective facts. The publisher cannot guarantee that content is accurate and updated to reflect changes in legislation, financial data, or opinion.

This content does not provide financial, tax, legal, or any professional advice. Personal financial decisions should not be implemented based on the content of this site. Do not act upon any information without first consulting a licensed investment, tax, or legal professional.

Igor Aronov, the publisher of this content, is a registered investment adviser representative and owner of FAR Financial Inc.