Safeguard your identity: Essential steps to prevent theft and fraud

By: Dr. AVI Verma

In today’s interconnected world, identity theft has become an increasingly common threat. Protecting your personal and financial information requires a proactive approach, starting with robust safeguards like freezing your credit and implementing additional layers of security. Here’s how you can shield yourself from identity theft effectively.

1. Freeze Your Credit: A Crucial Step in Defense

A credit freeze is one of the most effective measures to protect your financial profile. This process restricts access to your credit report, preventing unauthorized parties from misusing your personal information to open accounts or take out loans.

• What It Does: A credit freeze locks your credit report, making it inaccessible to lenders unless you provide explicit permission. This prevents the misuse of your Social Security number for fraudulent activities.
• No Impact on Credit Score: Your credit score remains unaffected, and existing accounts function as usual. Authorized entities can still perform “soft” credit checks for reviews or pre-approved offers.
• Convenient and Free: The process to freeze and unfreeze your credit is simple, quick, and completely free.

2. Protect More Than Just Your Credit

While freezing your credit with the major bureaus—Equifax, Experian, and TransUnion—is vital, additional steps can enhance your security.

• Innovis: This lesser-known credit bureau also holds personal financial information. Freezing your credit here ensures comprehensive protection.
• National Consumer Telecommunications and Utilities Exchange (NCTUE): Utility and mobile service providers often check credit via NCTUE. Place a freeze on your NCTUE account to block fraudulent attempts to open utility accounts. Contact them at 1-866-349-5355 for assistance.
• ChexSystems: Used by banks to assess applicants for checking and savings accounts, ChexSystems also offers a credit freeze option. Freezing your report here protects your banking information from unauthorized use.

3. Stop Pre-Approved Credit Offers

Pre-approved credit card or loan offers can be intercepted and exploited by identity thieves. To avoid this risk, opt out of receiving such offers.

• How to Opt-Out: Visit the official Opt-Out Prescreen website to remove your name from these mailing lists for a duration of five years or permanently.

4. Secure Employment and Social Security Details

Criminals can misuse your Social Security number for employment or benefits fraud. Implement safeguards to protect these critical details.

• Self Lock via myE-Verify: This feature allows you to lock your Social Security number, preventing unauthorized use for employment verification.
• Social Security Administration (SSA) Security: Strengthen your SSA account by creating a secure password and enabling multi-factor authentication for added protection.

5. Monitor Your Financial Transactions Regularly

Staying vigilant about your financial activities can help you catch signs of fraud early.

• Review Bank Statements: Regularly check your bank and credit card transactions for unauthorized activities.
• Use Credit Monitoring Tools: Many services alert you to changes in your credit report, helping you respond quickly to suspicious activity.

Credit Freeze vs. Fraud Alerts

A fraud alert only informs creditors to verify your identity before extending credit. However, it does not block access to your credit report. In contrast, a credit freeze provides comprehensive protection by preventing any unauthorized access to your credit file altogether.

Take Charge of Your Identity Protection

Preventing identity theft requires a combination of vigilance and proactive measures. Start by freezing your credit with major bureaus—Equifax, Experian, TransUnion, and Innovis. Extend protection to NCTUE and ChexSystems, and take advantage of tools like myE-Verify and Opt-Out Prescreen.

By securing your financial and personal information, you not only reduce your risk of identity theft but also gain peace of mind knowing your future is safeguarded. Make these changes today and ensure your identity remains your own.