Identity theft and online fraud continue to increase as cyber criminals gain access to personal information through data breaches, phishing scams, hacked email accounts, malware, and stolen Social Security Numbers. Many individuals do not realize their personal information has been compromised until unauthorized credit cards, loans, bank accounts, or fraudulent tax returns are opened in their name. One of the most effective steps individuals can take to help protect themselves from identity theft is placing a credit freeze with the major credit bureaus.

A credit freeze, also known as a security freeze, helps restrict access to your credit report. In many cases, lenders and creditors will not issue new credit accounts or loans without first reviewing your credit file. By limiting access to your credit report, a freeze can help reduce the risk of unauthorized individuals opening accounts using your personal information.

A credit freeze does not affect your credit score and can generally be temporarily lifted or removed whenever you need to apply for new credit, financing, housing, or other services requiring a credit check.

Why a Credit Freeze Is Important

Cyber criminals may obtain sensitive personal information through:

• Data breaches

• Phishing emails

• Hacked online accounts

• Stolen mail

• Malware or spyware

• Fake websites

• Social engineering scams

Once personal information is exposed, criminals may attempt to:

• Open credit cards

• Apply for loans

• Commit financial fraud

• Access banking information

• File fraudulent tax returns

• Steal identities

Placing a credit freeze adds an additional layer of protection and can help reduce the risk of new fraudulent accounts being opened in your name.

Benefits of a Credit Freeze

A credit freeze may help:

• Prevent unauthorized credit applications

• Reduce identity theft risk

• Protect exposed Social Security Numbers

• Limit fraudulent financial activity

• Add additional financial security

Credit freezes are generally free and can usually be managed online.

Before You Begin

You may need the following information:

• Full legal name

• Social Security Number

• Date of birth

• Current and prior addresses

• Email address

• Mobile phone number

• Identity verification documents if requested

It is recommended to place freezes with all three major credit bureaus for more complete protection.

Step 1 – Place a Freeze With Equifax

Visit the official website for Equifax and create or log into your account.

You may be asked to:

• Verify your identity

• Confirm personal information

• Complete security verification steps

After verification, follow the prompts to place a security freeze on your credit file.

Official website:
Equifax Credit Freeze

Step 2 – Place a Freeze With Experian

Visit the official website for Experian and complete the freeze request process.

You may need to:

• Create an online account

• Verify your identity

• Confirm security questions

Official website:
Experian Credit Freeze

Step 3 – Place a Freeze With TransUnion

Visit the official website for TransUnion and request a security freeze.

You may be required to:

• Register an account

• Complete identity verification

• Confirm your personal information

Official website:
TransUnion Credit Freeze

Important Information About Credit Freezes

A credit freeze:

• Does not impact your credit score

• Does not prevent use of existing credit cards

• Can usually be temporarily lifted online

• May require identity verification to remove or pause

If you later apply for:

• Mortgages

• Auto loans

• Credit cards

• Apartment rentals

• Certain employment screenings

you may need to temporarily lift the freeze before the credit check can be completed.

Additional Identity Protection Tips

In addition to placing a credit freeze, consider the following cyber security best practices:

• Use strong unique passwords

• Enable two-factor authentication

• Monitor financial accounts regularly

• Review credit reports periodically

• Avoid clicking suspicious links

• Be cautious with phishing emails and text messages

• Secure your email accounts

• Obtain an IRS IP PIN for tax identity protection

Cyber criminals often target email accounts first because email access may allow password resets on financial and online accounts.

Warning Signs of Identity Theft

Potential signs may include:

• Unknown credit inquiries

• Unexpected loan denials

• Bills for unfamiliar accounts

• Collection notices

• Missing mail

• Unauthorized banking activity

• IRS notices regarding unknown tax returns

Early detection can help reduce financial and identity theft damage.

Need Assistance?

If you need assistance understanding credit freezes, identity theft protection measures, IRS identity protection options, or general online account security guidance, Z Tax & Accounting may be able to help provide general educational guidance to assist clients in better protecting their personal, tax, and financial information from growing cyber security threats and fraud risks.