Recently, I spoke to someone about Identity Theft, types of ID Theft, its effects on the victim’s life and prevention methods.  Naturally, the person I was speaking to had a lot of questions about the subject matter.  But at the end of our conversation, that individual said something that made me worried a little bit.  He mentioned that by placing a security freeze you are completely protected from the Identity Theft.  I started to worry about it, because there are a lot of people who think the same exact thing.  Therefore, in this post, I would like to talk about the security freeze.

By placing the security freeze on your credit file, you prevent the Credit Reporting Agencies from releasing the information on your credit file to those who request it.  There are a few exceptions.  You can still view your free credit report every 12 months, the credit grantors you already have established relationship with and the collection agencies that work for them.  You can temporary lift the security freeze at any time.

California State was the first to pass a security freeze law in 2003.  In 2007, all three Credit Reporting Agencies announced that the consumers can place the security freeze regardless of their state of residency.  Any consumer can request a security freeze to be placed on their credit file, temporary lift it or remove it completely, but no one else can do it on their behalf.

To place or remove a credit freeze on your credit file, you should make a request in writing with the exception of some states.  Along with your request, make sure to include your complete name including middle name initial and generation (Jr., Sr., etc.), complete current address, Date of Birth and Social Security Number.  In addition, include a copy of a government issued ID, such as your Driver’s License and a copy of your utility bill (in some states) and an ID theft report filed with a law enforcement agency.  The fee for adding, or temporary, or permanently lifting a security freeze varies from state to state and ranges from $0.00 to $20.00 per request (the fee is waived if you are an ID theft Victim).  The Credit Reporting Agency will send you a notification once the security freeze is added, and you will be provided with a Personal Identification Number (PIN).  You must use this number if you need to make a request for a temporary or a permanent security freeze lift.

Send you request to each Credit Reporting Agency.  Here are the addresses for all three major CRAs:

• Equifax Security Freeze, P.O. Box 105788, Atlanta, Georgia 30348

• Experian Security Freeze, P.O. Box 9554, Allen, TX 75013

• TransUnion Fraud Victim Assistance, P.O. Box 6790, Fullerton, CA 92834

Visit each Credit Reporting Agencies’ websites for additional instructions on placing, temporary or permanent lift of credit freeze.

A credit freeze is often viewed as the most effective measure to prevent Identity Theft.  However, you must remember that it is only effective in preventing new account fraud.  The thieves may still be able to use your existing accounts.  A credit freeze does not protect you from Social Security fraud, Employment fraud, medical fraud, etc.  You still have to make sure you guard your personal information.  Please never assume that a credit freeze is a “cure for all”.