Freeze Facts Posted by Michelle at 05/02/07 05:44 PM

By now, you may have heard of this nifty identity theft prevention tool called the security freeze. But, there seems to be a lot of confusion about what the security freeze is and what it can do. So, I've decided to put together some quick facts about the security freeze.

Freeze Facts: 1) The freeze is not the same as the federal fraud alert; the freeze is far more protective. The fraud alert still allows access to your credit files to potential creditors while the freeze is just that--a freeze to potential creditors. 2) You need to make a request with each of the three credit bureaus. 3) The freeze won't stop your current creditors from having access to your credit files. 4) You will have to make a request for a "thaw" or temporary lift if you are seeking a new loan, credit card, or any other type of new account so that the potential creditor has permission to look at your credit report or score. This may be a small inconvenience, but think of the larger headaches and time consumed trying to fix new identity theft account fraud and theft! 5) Currently, 33 states plus the District of Columbia have passed security freeze laws giving consumers this option to freeze, or lock up their credit files.

For more information on whether your state offers you the security freeze and on how to get one, click here.

comments (5)

1 Posted by Michael Durnack at 05/07/07 08:40 AM

Freezing your credit is the first of many steps individuals need to take to defend themselves from the attack of identity theft.

Stealing your personal information and opening up an account in your name is a heavily publicized event, but there are many other ways stolen identities are being used and causing hardships on consumers across the country.

While freezing credit is an excellent fist step, individuals should review how they protect themselves in all areas of their lives, not just the credit report.

Self defense is truly the best defense.

2 Posted by Lawrence Wilson at 05/16/07 01:25 PM

HOW IMPORTANT IS STATE FREEZE LAWS?

As of May 15, 2007, the Texas State Legislature has passed SB222 through the State Senate (26-0) and is at the 3rd reading in the State House.
If we get a two-thirds majority in the House, this law will become affected immediately. If we don't, then it will become law Sept 1, 2007.
We are at the end of a two year battle in getting this legislation passed.

Here is what has happened in 2006 regarding 'State Freeze Laws". Everyone remembers the VA Security Breach last May in Washington D.C. that put 26.5 milllion veterans and active duty military members financial security as risk.

Here is an excerpt from our press release:

"Lawrence Wilson (Vietnam Veteran, USAF), Director of “Identity Theft Victims Support Group of North America" (Plano, Texas), is pleased to announce the following statement:

In cooperation with the "Montgomery County Police Department of Rockville, Maryland" (Ms. Peggy M. Lyles, Deputy Custodian of Records), is pleased to announce the release of the police report (See statement below) for the Veterans Administration Security Breach of May 3rd, 2006. A partial statement is as follows: "Our police report number for this incident is XXXXX24 (This information will be made available on our web site, Sept. 30, 2006). Please accept this case number as verification that the incident occurred and a police report was written. Because this is an open and ongoing investigation, the actual police report will not be released at this time (Ms. Peggy M. Lyles)".

We have three national credit bureaus that control the credit scores of every American that has a “Social Security Number” (Governed by Federal Law). Since Congress has not enacted a “National Freeze Law” to protect all Americans, our organization used existing state laws to help veterans and active duty personnel protect their credit files by giving them an option to “Freeze Their Credit Files”. Our organization has set a precedent in Texas by freezing credit bureau files for veterans, active duty and reserve military personnel whose data was part of the "Veteran Administration Security Breach" on May 3rd, 2006 in Washington D.C. of 26.5 (Based upon VA Internal Records on File at the Time of Breach) million veterans and 2.2 million active duty military personnel.

By utilizing the current "Credit Bureau Freeze Laws" that exist in seventeen (17) states (24 states after January 01, 2007), our organization actions makes it possible for approximately twelve (12) million veterans to have the option of "TO FREEZE OR NOT TO FREEZE" their personal credit bureau files. On January 1, 2007, that number will grow to approximately fifteen (15) million. Of the 2.2 million active duty members, their option to freeze will be based upon their "Home of Record" state. If their "Home of Record" is one of the twenty-four (24) states, then they can freeze their files. If they are not, then the only option available to them is an "Active Duty Fraud Alert" placed on one of the three national credit bureau agencies."

This action gave approximately 15 million veterans and 1.2 million active duty military members in 24 states the right to "Freeze Or Not To Freeze" their credit bureau files.

You are right. There are other measures that you need to do to protect yourself from "Identity Theft".

Guard your checking accounts like your SSN.
Remember, your name and address on your checks do not stop thieves from using your ABA number and account number and put someone else's name on the checks. The banks do not look at your name, just your ABA and account number. With a fake driver's license, thieves can empty out your checking account.

Debit cards should never leave your hand. Over 30% of all skimming occurs in two industries; restaurants and bars. Do not link your checking and savings accounts to your debit card either.
Have seperate accounts for your primary checking and your debit card. Never keep large amounts in you debit card account. We recommend keeping balance at less than $100 to $150. If you need more, you can also transfer monies into that account, either on line or via telephone.

There is more each of us can do to prevent "ID Theft".

Remember, "Prevention is NOT the Key to stopping ID Theft, Awareness is."

Thank You
ID Theft Victims Support Group of North America

3 Posted by John Burik at 05/29/07 05:38 PM

Ohio is working on a new bill. I do not know the particulars. Ohio currently offers an ID theft card which establishes an individual's identity has been stolen. That might be helpful in some situations.

There is another side of this issue which I believe needs to be addressed. That is accessing one's own credit when desired. I placed a fraud alert with all three major bureaus. The result: it did nothing to remove the inaccurate info from my file. I did that by proving where I live. Worse, AFTER the inaccurate info was resolved I was turned down for two credit cards and could not open two savings accounts because the institutions could not access my file.

Thus, I was the one damaged by a tool intended to protect me. I've sent written notice to all three bureaus to remove the fraud alert and signed up for a three-in-one monitoring service. I hate the idea of paying to protect myself from inaccurate information someone else published, but I think it's the best solution for me.

Legislation is great but needs to approach the problem in a comprehensive fashion that matches intent with reality.

4 Posted by Susan at 07/27/07 09:20 PM

I read the security freeze info for NY State published by Consumer Union. While informative, it left me confused about a few topics:

1) Am I assumed to pay $5/$10 to each of the 3 agencies every time I want to buy something on credit (when a credit check is done) to unfreze/freeze my credit file?
2) How do I find out if I can freeze/unfreeze my info via the Internet? Having to send certified letters is both time consuming and expensive.
3) Is there any plan to reduce these fees? Unfortunately everyone is in the habit of checking your credit. While the new process protects against Identity Theft and it is a step in the right direction, it appears to be quite cumbersome and expensive, as if it would have been written by the 3 credit agencies...
4) The description states that after a security freeze, "even if someone who has your SSN PROBABLY would not be able to obtain credit in your name". If I go through this trouble, pay for it, why is that my info is still not safe, why is that "probably" I cannot become a victim?

Is there any place where I can easily find information regarding the above? I would appreciate any pointers of answers.

5 Posted by Michelle at 08/07/07 12:17 PM

Thanks for reading, and hopefully we've addressed your questions. We're provided the following answers below in CAPS:

1) Am I assumed to pay $5/$10 to each of the 3 agencies every time I want to buy something on credit (when a credit check is done) to unfreze/freeze my credit file?

YES, IN NEW YORK YOU'LL HAVE TO PAY $5 TO UNFREEZE OR TEMPORARILY LIFT THE SECURITY FREEZE TO ALLOW FOR A CREDIT CHECK. SOMETIMES, YOU CAN FIND OUT WHICH BUREAU THE BUSINESS USES TO NARROW WHO YOU WILL NEED TO REQUEST A TEMPORARY LIFT.

2) How do I find out if I can freeze/unfreeze my info via the Internet? Having to send certified letters is both time consuming and expensive.

WHILE WE AGREE THAT CERTIFIED MAIL CAN BE CUMBERSOME, NEW YORK'S SECURITY FREEZE LAW CURRENTLY DOES NOT MANDATE PROVIDING CONSUMERS THE OPTION OF USING THE INTERNET TO FREEZE OR UNFREEZE YOUR CREDIT FILES. THERE ARE A NUMBER OF STATES THAT DO ALLOW FOR THIS. THE NY LAW DOES HAVE A PROVISION THAT REQUIRES A STATE AGENCY TO REVISIT PROVIDING CONSUMERS OTHER METHODS TO PLACE AND USE THE FREEZE. YOU SHOULD CONTACT YOUR LAWMAKERS TO URGE THE STATE AGENCY TO ACT ON THIS PROVISION.

3) Is there any plan to reduce these fees? Unfortunately everyone is in the habit of checking your credit. While the new process protects against Identity Theft and it is a step in the right direction, it appears to be quite cumbersome and expensive, as if it would have been written by the 3 credit agencies...

NY IS AMONGST THE STATES THAT OFFER THE LOWEST FEES TO CONSUMERS IN USING THE FREEZE. WE ARE NOT AWARE OF ANY EFFORTS TO LOWER THE FEES AT THIS TIME. YOU SHOULD CONTACT YOUR LAWMAKERS TO ENCOURAGE THEM TO LOWER THE FEES.

4) The description states that after a security freeze, "even if someone who has your SSN PROBABLY would not be able to obtain credit in your name". If I go through this trouble, pay for it, why is that my info is still not safe, why is that "probably" I cannot become a victim?

THE SECURITY FREEZE'S PURPOSE IS TO PREVENT NEW ACCOUNT THEFT AND FRAUD, WHICH IS THE MOST COSTLY AND TIME-CONSUMING FORM OF IDENTITY THEFT. THERE ARE INSTANCES IN WHICH CONSUMERS HAVE BECOME IDENTITY THEFT VICTIMS OR VICTIMS OF FRAUD DUE TO EXISTING ACCOUNT THEFT AND FRAUD, WHICH THE SECURITY FREEZE WILL NOT STOP AS THERE IS NO CREDIT CHECK INVOLVED.