What's the fastest growing crime in the United States? Would you guess it has something to do with gun violence, corporate fraud, or maybe texting and driving? Nope! In fact, identity theft is the fastest growing crime in the US, so prevalent that every year about 15 million citizens have their identities stolen or used frequently, costing losses of up to $50 billion!
In our information age when transactions are migrating online and even companies and the government lose your sensitive financial information to thieves. No one is immune - even celebrities like Hillary Clinton, Jay Z, and Attorney General Eric Holder have had their social security numbers breached at AnnualCreditReport.com.
So if you're identity is stolen, or you just suspect some sort of malfeasance with your credit report, social security number, or financial transactions, what is your recourse? There are two main ways to safeguard your identity, a credit freeze and a credit fraud alert. We'll go over them here and tell you the difference, and why this information might save you a lot of time and money.
Credit Freeze.
A credit freeze basically inhibits all access to your credit report. The use of a credit freeze varies from state to state and which credit bureau you're dealing with, but think of it as a brick wall that stops any criminal from opening new lines of credit in your name. Sometimes it's free and sometimes there is a small $10 fee, depending on your state.
To enact a credit freeze, you would contact your state's Attorney General's office to report that you are a identity theft victim, and then ask the three credit bureaus to put a freeze on your file. The freeze will stay in place until you remove it, and you can still get a copy of your free credit report to monitor activity, but to engage in any activity that involves a business or company accessing your credit, like applying for a mortgage or opening a new credit card, you'll need to lift the freeze, either permanently or temporarily.
Your other option is to place a Fraud Alert, which is a federal right intended for victims of identity theft. It is free to place or remove a fraud alert on your credit once you've created an Identity Theft Report.
An initial fraud alert lasts for 90 days, and then you can add 1 year. If you believe that your credit has been compromised, or still is, then you can place an extended alert, which lasts for up to 7 years.
There is also an active duty fraud alert, available for members of the military who are required to go overseas and therefore susceptible to identity theft.
These fraud alerts allow you to add 2 extra free credit reports per year from each of the 3 credit bureaus, add an additional level of scrutiny for any business or lender to access your credit, and forces credit reporting companies to take your name off their marketing lists for 5 years. Neither credit freezes nor credit fraud alerts negatively impact your credit score. Feel free to contact Blue Water Credit if you need help protecting your identity and credit score.
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