ght (c) 2009 Suzy Vanstrusen
Consumers are constantly reminded to keep on guard against identity theft and fraud. If you suspect identity theft, you can place your report on fraud alert. This way, when someone tries to open an account under your name, creditors who may inquire about your report will see the alert and contact the owner of the report before approving the application.
Nevertheless, a fraud alert can be ignored. Creditors do sometimes ignore the warnings and approve the application. To provide consumers with a more reliable protection against ID theft, credit freeze was introduced.
Understanding Credit Freeze
What is the difference between a credit freeze and fraud alert? Unlike a fraud alert, a credit freeze blocks new creditors from accessing an individual’s credit report. Not even the owner of the report can take a look into it while it’s on freeze. To make the credit report available for inquiry, the owner must first request for the freeze to be lifted.
Without access to the credit report, no creditor will grant approval for a new credit application. Obviously, if an identity thief attempts to open an account using your name or steal your account information, it will not be possible since no one can access your report.
Be On Guard for More Risks
In what other ways can you protect your identity from fraud? Below are practical tips to help you:
- Be alert when using ATMs. Make sure that no one is looking over your shoulder or standing too close behind you. Do not throw away ATM receipts in the trash.
- Shared important documents before discarding them. Identity thieves also rummage through other people’s trash in search for information. Before throwing your away old billing statements, receipts or old credit cards, shred them first to small pieces.
- Do not write important details on just any sheet of paper. Write your passwords and banking information in a logbook and keep it in a safe storage.
- Request a different credit card number for online use. You can ask your issuer for a different credit card number that you can use for online transactions. This way, you do not have to reveal your banking information online.
- Monitor your accounts regularly. Check all billing statements and notices that your bank sends you. Many credit card companies today provide an online account access option so cardholders can look into their accounts at any time.
- Subscribe to the fraud protection service provided by your issuer. One of the most important provisions that you can get from your credit card company is the fraud protection feature. Be sure that you clearly understand your credit card issuer’s policy on this.
- Check your credit report regularly. If you do found errors, send a dispute letter to the credit bureaus. Point out the errors that you want to be corrected. You can also ask help from a human customer service from any of the three credit bureaus, by visiting gethuman.com for a list of contact numbers.
Wilma