Tech Watch: Building Roadblocks Against Fraudsters

Building Roadblocks Against Fraudsters

Securing Your Credit Reports

By David Guilmette | Farm Credit West Chief Information Security Officer

Nowadays, cyber criminals need only a few pieces of your personal information to drive your current credit identity into chaos.

With only a driver’s license and social security number, these fraudsters can steal your identity and open lines of credit with credit card companies, leaving you with massive amounts of debt. In a study done by fintech research company Javelin, the 2021 Identity Fraud Study estimates that identity fraud costs Americans a total of $56 billion, with 49 million consumers (about twice the population of Texas) being victims of cybercrime. Considering these staggering numbers, it is important to take all necessary precautions to put traffic cones around your financial footprint and force these criminals to take a detour. A key step you can take to prevent identity theft is to freeze or lock your credit reports. A credit report lists your bill payment history, debt and other personal financial information. These reports are held by three national credit bureaus: Experian, Equifax and TransUnion. When you apply for a loan at a trusted financial institution, like Farm Credit West, this information may be useful to your lender to supplement their analysis prior to determining approval of your request. However, when a credit report is frozen or locked, no one can access your report or open a new account, unless you take the steps to thaw or unlock them. If you do implement a freeze or lock on your credit, be sure to take proactive steps to thaw or unlock it prior to applying for a loan to avoid unnecessary delays due to your lender not being able to access your credit history. Credit freezes and locks are similar in that they block others from viewing your credit history but differ slightly. A credit freeze is always free, although it may take a few more steps to thaw your reports when the time comes. A lock can cost money, usually a month-to-month subscription fee for around $24.99, but the process to unlock can be simpler.

HOW TO FREEZE OR LOCK YOUR CREDIT REPORTS

Contact each of the three credit bureaus separately:

EXPERIAN

Experian’s Security Center can be found at Experian.com or call 888-EXPERIAN.

EQUIFAX

Create an account at Equifax.com.

TRANSUNION

Visit the TransUnion.com portal to make an account. When freezing, the bureaus will provide you with a PIN that you can use to thaw your credit when you need to. If you choose to lock your reports, you may be able to download an app that will enable you to unlock your report with just the click of a button on your mobile device. All freezes and locks remain active until you ask the bureaus to remove them.

By taking the appropriate measures to secure your credit reports, you are further protecting your financial information from fraud, keeping you on the road toward a protected identity. ■