Ep8: Securing Your Credit Reports and Freezes

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Welcome back to the Byte Sized Security podcast, your source for

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bite-sized cybersecurity lessons.

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I’m Marc David, and with me today I have credit security expert Olivia Chen.

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Given the prevalence of data breaches exposing personal information,

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having vigilant credit protections in place is more crucial than ever.

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Olivia joins me to discuss best practices like credit freezes,

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monitoring your credit reports, and safeguarding your child’s information.

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If you want practical tips to lock down your credit from

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fraud, this episode is for you.

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Let’s dive in!

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Olivia, so great to have you on the show.

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Can you start by explaining what a credit freeze is and its benefits?

Olivia: 00:00:33

Happy to be here, Marc!

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A credit freeze restricts access to your credit report, which prevents anyone from

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opening new credit accounts in your name.

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This makes it vastly harder for identity thieves to use your information even

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if it’s compromised in a breach.

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Freezes must be lifted temporarily when you want to apply for new

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credit, but it’s easy to do online.

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I highly recommend freezes for maximum credit protection.

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That’s really good to know.

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What's the process for freezing your credit reports?

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You have to place a freeze separately with each of the three

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major credit bureaus – Equifax, Experian and TransUnion.

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This can be requested online or by mail.

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The bureaus must place the freeze within 1 business day, and provide

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a unique PIN to lift it when needed.

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Keep the PIN very secure, like your credit card PIN.

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Some states allow fees but many offer free freezes.

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Are there any downsides to having a credit freeze that

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people should be aware of?

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The main thing is it takes additional planning when you want to

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apply for new credit, as you have to proactively lift the freezes at each

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bureau a few days before applying.

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So it can add a small hurdle to the process.

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However, I think that extra vigilance is worth the very strong identity

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theft protection a freeze provides.

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What about thawing credit freezes, is that a difficult process

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if people need to apply for credit?

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Not at all!

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You simply log into each bureau’s website and lift the freeze

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temporarily using your PIN.

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It usually takes effect within an hour and usually much less.

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Just be sure to refreeze after you’re done applying for new credit but

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most bureaus auto-freeze again or allow you to set a shorter timeframe.

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You can also do temporary 7-day lifts.

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The key is freezing by default, and only thawing briefly when needed to

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avoid keeping credit perpetually open.

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A quick tip is to ask whoever needs to check your credit, which bureau

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they will check so you can just thaw that agency and save yourself

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some time from doing them all.

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This seems especially important for parents to consider for their children.

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What’s your advice regarding kids’ credit freezes?

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I absolutely advise that parents freeze their minor children’s

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credit files in addition to their own.

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Child ID theft is sadly very common, often going undetected for years.

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Their credit should remain frozen until they are old

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enough to manage it themselves.

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Just be sure to lift and refreeze when applying for student loans.

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Doing this prevents criminals from exploiting kids’ unused credit.

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Let’s pivot to credit reports themselves.

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Why is it so important to check your reports annually?

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Reviewing your credit reports regularly lets you catch

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any signs of fraudulent activity early, like accounts you didn't open.

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You also verify your listed personal and contact info is correct.

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Everyone is entitled to one free credit report from each bureau

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yearly at annualcreditreport.com.

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I suggest staggering checks every 4 months to monitor consistently.

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What are some red flags people should watch for when

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reviewing their credit reports?

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Things like accounts, address changes or inquiries you don't recognize

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could be signs of identity theft.

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Make sure no unauthorized credit checks were done by lenders.

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Ensure listed employers and income are correct.

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Watch for errors like mistaken late payments that could

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unjustly lower your score.

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Basically verify the data reflects your actual credit profile.

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If listeners discover potential fraud on their credit report, what

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steps should they take to remediate it?

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First, immediately notify the involved creditors and have

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any fraudulent accounts closed.

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Then dispute the charges with each credit bureau in writing, providing

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evidence like police reports.

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This initiates fraud investigations.

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You can also request fraud alerts on your files requiring scrutiny of new accounts.

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And contact the FTC to report the identity theft.

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With quick action, the damage can be contained and credit restored.

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For listeners concerned after all the recent breaches, would you

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suggest they check and freeze credit now regardless of whether they were impacted?

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Absolutely, given how rampant exposes of consumer data have become.

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Even if you don’t know you were directly affected, putting a proactive

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freeze gives you reliable protection.

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And checking reports allows early discovery of any credit misuse.

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Don’t wait to take these precautions.

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Final words of wisdom for our listeners looking

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to lock down their credit?

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My main advice would be to make credit protections like

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freezes and monitoring your reports part of your regular financial

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hygiene, like checking bank balances.

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Cybercrime is only growing, so permanent vigilance is key.

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But with proactivity, you can greatly minimize risks

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to your identity and credit.

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Outstanding tips, Olivia.

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Thank you for sharing your credit security insights!

Olivia: 00:04:33

My pleasure, thanks for having me on!

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That wraps up this episode focused on empowering you to secure

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your credit reports and identity.

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Implement freezes, routinely check your reports, and act quickly

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against any fraudulent activity.

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By being proactive, you can reduce risks of damaging credit fraud.

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Visit byte sized security.show for more cybersecurity lessons.