According to security.org, sixty-two million Americans experienced credit card fraud in 2024, with unauthorized purchases exceeding $6.2 billion annually. It is also worth noting that most fraudulent charges were accessed remotely through personal data and account information, rather than lost or stolen cards. This highlights the importance of taking steps to reduce exposure to financial fraud.
- Rotating Passwords: Avoid using the same password across multiple online accounts. This also includes storing passwords in vulnerable locations, such as merchant websites and browsers, and submitting payments through public Wi-Fi networks.
- Separating Accounts by Transactions To minimize risk and make it easier to detect potential fraud, it is recommended to avoid using daily purchases and automatic billing on the same credit card. Separating different types of transactions between different accounts can also be beneficial. This approach limits the potential damage in case of unauthorized transactions and makes it easier to identify any suspicious activity.
- Review credit card statements: Spending a few minutes regularly reviewing your monthly bills is a low-tech way to verify charges. It is crucial to confirm that all merchants and purchases listed are familiar to you. When reviewing your bills, pay close attention to recurring expenses.
- Placing a Credit Freeze (security freeze) – Another proactive step to reduce your risk of identity theft is to place a credit freeze, also known as a security freeze, on your credit profile.
A credit freeze is a service offered by the three major credit bureaus – Experian, TransUnion and Equifax – that restricts access to your credit report and prevents new credit accounts from being opened in your name. This service is provided at no additional cost to you. It’s essential to note that a credit freeze does not affect your credit score or prevent you from obtaining a free annual credit report.
While it does not guarantee complete protection against identity theft, it can help limit the risk of identity theft and prevent new credit accounts from being opened without your permission. If you already have existing credit accounts, a credit freeze may not prevent fraudulent transactions from occurring.
To request a credit freeze, you can submit an application online or by mail to the credit bureaus. Once the request is processed, your credit report will be frozen within one business day. This means that no one will be able to access your credit report or open new credit accounts in your name without your explicit permission.
It’s worth noting that a credit freeze is not the same as a fraud alert. While a credit freeze restricts access to your credit report, a fraud alert notifies creditors to take extra precautions when considering new credit applications in your name. If you’re concerned about identity theft, you may want to consider both a credit freeze and a fraud alert.
To freeze your credit at no cost with the three major credit bureaus, visit the links or call the numbers detailed below. You will need to provide your name, address, date of birth, Social Security number, and other personal information.
Online: Log in to permanently lift your credit freeze or schedule a temporary unfreeze by selecting specific dates.
By mail: agencies must lift the freeze within three business days
Experian
1-888-EXPERIAN (888-397-3742)
TransUnion
1-888-909-8872
Equifax
1-800-685-1111
Each credit bureau will provide you with a unique PIN or password, which will be required if you need to lift the freeze permanently or temporarily to open a new account. Be sure to keep the PIN or password in a safe and secure place.