top of page

A Credit Freeze Is The Best Response to A Data Breech

By Gary Webb, RFC

Data breaches that expose consumers’ sensitive personal information are unfortunately a part of living in a digital world, but you can take steps to protect yourself. Those facing or concerned about a data breach have questions about what they should do. Whether or not your information has been exposed, now is a good time to consider placing a security freeze on your credit files at the three bureaus: Equifax, Experian and TransUnion.


Credit file monitoring by companies such as LifeLock, IDShield, or others, have proven to give people a false sense of security because it does not work according to FBI and forensic specialists. Whether you use these types of service or not, you will want to take these extra precautions:

 

  • Lock your file with each of the three bureaus - this ensures that no one can apply for credit using your social security number going forward. Each bureau may charge depending on the state where you live.

​

Equifax 1-800-685-1111 https://www.equifax.com/
Experian 1-888-397-3742 https://www.experian.com/
TransUnion 1-800-916-8800 https://www.transunion.com/

​

  • Another suggestion to consider is purchasing an Identity Theft Protection policy in case your identity is stolen. These companies work to rebuild credit so you don't have to do that on your own.


Note: When opening a new credit account, contact each of the bureaus listed above to unlock your file. Be aware that it may take up to 2-3 days before you can open a new account.


Watch your credit card activity. It’s important to review monthly statements, consider signing up for transaction alerts and dispute suspicious charges as soon as possible.

​

Freezing your credit will certainly give you peace of mind. However, continue to keep an eye on your information. One free credit report is available each year from the three bureaus and can be accessed at this website:
http://www.annualcreditreport.com

It’s important to keep in mind that financial institutions also provide protections against fraud and theft.

 

  • SIPC Insurance: The SIPC will cover up to $500,000 insecurities, including a $250,000 limit for cash held in a brokerage account. All Fidelity & Charles Schwab brokerage accounts are covered by SIPC and they purchase additional coverages on top of these basic amounts from private insurance companies.

  • FDIC Insurance: The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.

  • Credit Union Insurance: The standard share insurance amount is $250,000 per shareowner, per insured credit union, for each account ownership category.

  • Minnesota Insurance Guarantee Fund: The maximum total amount the Guarantee Association will provide for any one individual for life insurance and annuity coverage is $300,000.

bottom of page