If your Social Security number gets
hacked in any data
breaches, including recently hacked T-Mobile, then there's a way to prevent
hackers from misusing your identity (i.e. identity theft).
The solution here is that you can institute a security freeze at each of the three credit
bureaus,Equifax, Experian,
or TransUnion.
Once frozen, nobody will be allowed to access your credit report, which
will prevent any identity thieves from opening new accounts in your name.
Because most creditors required to see your credit report before
approving a new account. But, if they are restricted to see your file, they may
not extend the credit or open a new account in your name.
However, there are some disadvantages of doing so.
1. Cost
The cost of a security freeze differs by state (check yours here).
However, it is often free for already affected people, but the issue is – if
you want to let anyone check your credit, you will need to pay a fee every time
to lift the freeze.
This happens not just for your credit applications, but your credit
report also gets pulled when you register for a mobile phone contract or apply
for a new job or a new apartment as well.
The credit agencies will provide you a unique password
to lift the freeze and charge up to $12 each time you lift the
freeze. So this option can get costly.
2. Once Used, Nobody can Help
Moreover, if an identity thief has already used your stolen data to open
accounts in your name, then a credit freeze will not help you out.
You can check your credit report for free three times a year at annualcreditreport.com. If you suspect any fraud, change
your passwords, notify your financial institutions, keep an eye on your
financial statements, and report to police.
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