One of the scariest types of identity crimes is something called new account fraud. This happens when a criminal steals your personal information, opens credit or other accounts in your name and goes on a spending spree. Here are a few things you can do on your own to prevent the crime.
Fraud Alerts
Fraud alerts are a signal to companies that they should double-check the identity of a credit applicant before opening an account. You are supposed to create an alert only if you’ve already been a victim or think that you may be, though companies like LifeLock argue that most Americans fall into the latter category.
You can place a 90-day alert on your credit files with the three largest credit reporting agencies. When you call any one of them, that company is required to automatically inform the others.
Equifax: 1-888-766-0008
Experian 1-888-397-3742
TransUnion 1-800-680-7289
Credit Freezes
When you place a freeze on your credit files, no companies can look at them unless you have an existing business relationship with them. The practical effect is to shut down most new account fraud, since most companies want to see your file before issuing new credit in your name.
Rules on freezes differ by state, though it generally is not free to impose one. Go to financialprivacynow.org and click on “Lock up credit files with a security freeze” to see a list of rules and instructions by state.
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