Identity theft once had the simple name of debit or credit card fraud which involved using a stolen number to make fraudulent purchases.  Now that simple crime has evolved into getting the social security number of the victim and opening brand new accounts.  Most of the time the victim is totally unaware of these new accounts because the identity theft is having the bills sent to a different address so the spending goes on unnoticed until a collection agency contacts the victim for nonpayment.

Even if you check your statements every month you will not get any tips as to this happening but if you check your credit report you will see it.   This can be time consuming and expensive because most of the time it will cost you to get a copy of your credit report.  You can get free copies once a year but if you wait that long a lot of damage can already be done to your credit.

To help with this problem credit bureaus are offering an option that is called a credit or security freeze.  This credit or security freeze is just a hold that is put on your credit file at each of the credit reporting agencies which are three.  When this hold is placed on your credit file it helps to prevent potential creditors and credit card issuers from being able to see your credit history.  If they cannot see your credit history they will not issue any credit which means the identity theft will not be issued any credit in your name.
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Having your identity stolen can be a very frightening experience not to mention one that can takes months to years to straighten out.  If you have been a victim of identity theft there are certain rights that you do have as a victim.  When you know that you have become a victim of identity theft you have the right to file a report with the law enforcement agency and ask for a copy of it to use as proof your identity has been stolen.

You also have a right to get an identity theft report that is like a police report but does into more detail.  It should contain enough information that the businesses and credit reporting companies can verify that you are a victim.  It will also let them know just what information or accounts have been affected.

When you start to deal with the various credit reporting companies you have the right to put a ninety day initial fraud alert on your credit files.  You should do this if you think you are a victim or may become a victim of identity theft.  This alert just tells the users of your credit report that they must take steps to verify who is trying to get credit in your name.  To do this, all you have to do is contact just one of the credit reporting bureaus and they will contact the other two bureaus.

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Take action immediately once you realize you have become a id theft victim.  This is means that there are going to be hundreds of phone calls, countless hours, and lots of writing to keep meticulous records of all the conversations you have.  In addition, you need to realize that you are going to find yourself repeating some of the same information over and over.  You are also going to spending several hundreds of dollars on mailing out certified letters and documents not including the wages you may loose if you have to go to court.  You may also have to deal with collection agencies for bills you did not create.  You are going to have to check your credit reports to see what damage has been done, and you will need to make sure that your medical records have not been compromised.  There is so much that you will have to do to get your identity back.

You need to make sure your bank and credit card company have been contacted.  You should also contact at least one of the credit reporting agencies to report the fraud.  By law, they are required to notify the other two agencies.  They will also send you a free credit report.  Make sure that they put a fraud alert on your report.  You may also want to ask them if they can freeze any applications for credit until you tell them to remove it. In addition, make sure that you change your passwords and PIN number on all your accounts.
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Identity theft can cause a great deal of hassle and expense.  It can be very time consuming to fix the damage done to credit scores.  One tool that can help you to combat identity theft is a credit freeze.  While the laws regarding a credit freeze vary from state to state the general idea is that if you place a credit freeze on our credit report creditors and other third parties are not able to access your credit report.  This also means it is nearly impossible for an identity thief to open up a new credit card account in your name.  A credit freeze does not affect your credit score, and it does not prevent you from getting your annual credit report.

It is important to understand the exact laws regarding credit freezes where you live; in some states only victims of identity theft can freeze their credit and in other states anyone can do it.  In most states where anyone can place a credit freeze on their credit report it costs about $10.  It is important to recognize that the credit freeze has to be placed on each of the credit score from the three major agencies, so this means the actual cost for a complete credit freeze is about $30.

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Credit freeze, like fraud alert can be one of the important devices to prevent the attack of identity theft. With the upsurge of identity theft, not only credit freeze fraud alerts are used as protectionism but also credit freeze is placed as a safeguard.

Many baffle themselves with question that what is a credit freeze and what are the benefits associated.  Moreover, at times the conception of fraud alert protection is also mixed up with credit freeze. Credit freeze and fraud alert are totally two different protection tools for identity theft, and should not be confused.

Credit freeze

A credit freeze also known as credit lock, where you require paying for totally locking your credit. This states that no lender will have access to your individual credit report. This has been available by the bureaus in all 50 states. In case, you want to state an application for credit, you need to ask the credit agency to terminate the credit freeze. It is only after that, the lender will be able to gain access to the credit report. Afterwards the credit freeze can be reinstated. Read the rest of this entry »