Chances are that you have heard about a recent data breach.  It seems like they are happening all the time.  No matter how hard companies try and protect consumer data, it seems like there are bad actors out there trying to hack into consumer data. 

So what should you do to protect yourself? 

First of all, we do not recommend that you immediately go and purchase products with the credit agencies.  There are steps you can take that are free and will probably do just as much to make sure that your credit is protected. 

Instead, we would strongly suggest that you consider establishing a security freeze on your record with each of the three credit agencies - Equifax, Transunion and Experian.

Placing a security freeze on your credit with each agency is the only way to prevent someone from obtaining credit in your name without your consent.  Here are links to each credit reporting agency that will facilitate a security freeze:

• Experian Security Freeze

• Equifax Security Freeze

• Transunion Security Freeze

Understand the Drawbacks of a Security Freeze

While implementing a security freeze on your credit is a great way to prevent new credit from being extended in your name, you need to understand that there are drawbacks.

A security freeze does not protect you against someone stealing and using your existing "open" credit or revolving lines of credit.  You will still need to monitor all open lines of credit.  These would include active credit cards, as well as dormant credit cards (or lines of credit) that you haven't used in a while - and may have forgotten about.  We would suggest that you identify all of your sources of credit by obtaining a credit report at www.annualcreditreport.com.   Residents of many states, including NC, are allowed to obtain a free copy of their credit report from each of the three credit reporting agencies once every 12 months.  Once you identify all of your open credit lines, you may want to close those that you don't use (or didn't even know was open).  Normally, the contact information to these credit providers are listed in your credit report.

A security freeze can be inconvenient at times.  Having a security freeze on your credit can delay certain legitimate credit providers access to your credit report.  Cell phone, internet, mortgage providers, etc. all perform credit checks before extending their service, or offering you an account. These vendors will all be unable to see your credit report unless you actually "lift" the security freeze on your credit.

While the process of lifting the security freeze is fairly painless, it does require some advanced planning on your part.  You will need to check with the service provider, prior to applying for an account, to determine which of the three credit reporting agencies they utilize to check your credit.  When you know this, you can then contact that credit reporting agency to temporarily lift the security freeze on your account.  You can lift the freeze for a specific vendor (i.e. Verizon, Wells Fargo, etc.), or you can simply lift it for a certain amount of time (5 days).

Having a security freeze on you credit requires some organization.  Because of the very sensitive nature of your credit, you need to be organized.  You will need to maintain a very secure folder that lists all of the details of your security freeze.  You will need to keep track of your login information and all pertinent PIN numbers, when applicable. This information will enable you to lift or suspend your security freeze. 

These slight inconveniences are small price to pay to ensure that you maintain control of your own credit.

There are many resources available to those who would like to learn more about identity theft prevention.  Here are a few to check out:

• Consumer.gov

• Consumer Financial Protection Bureau

• NC Attorney General's Website (Online Forms for a free security freeze)

We would recommend that everyone freeze their credit.  While it can be inconvenient, the peace of mind that no one can open credit using your information is worth it.  We would also encourage you to freeze the credit of elderly relatives as they can also be victims of identity fraud as well.  We have seen countless instances where there is identity theft and the victim lives in a nursing home and the family members have to unscramble it. 

This is a growing problem and we hope you will take steps to protect yourself.  As always, let us know if we can help you with this.