You’ve likely heard about the recent security breaches at popular stores like Target, Neiman Marcus and Michael’s. While it’s bad enough that so many customers’ security was compromised, what’s even worse is the reports that these customers’ personal and credit information often ends up on a large database to be bought by criminals for as little as $40.
You might imagine some shady database that is hard to find unless you’re a criminal.
Unfortunately, the truth is that your personal information is surprisingly easy to find on the web.
Hiding in Plain Sight on the Internet
While I didn’t turn up anything amiss with the home, I was shocked when I happened upon a site that touted itself as a reverse social security number look up. The address I was searching was there, complete with the owner’s social security number. In fact, every social security number that was listed had either the number holder’s full name or address.
Scary stuff!
You Can’t Control What Happens to Your Personal Information
The simple truth is, no matter how cautious you are about not sharing your social security number or making sure to shred all documents containing your personal information, you can’t control all aspects of that information.
If you’re living a normal life and using a credit card or debit card, you might be the victim of a company’s security breach (even though you did everything right to protect your identity). Your own information could very well end up on the web even if you’re diligent about not having a web footprint.
Consider Freezing Your Credit
My friend recently had her identity stolen. She found out fairly quickly–within 3 days, but by then the thief had already charged over $20,000. She’s spent hours trying to clear her name while also caring for her 5 young children during the day. I can’t imagine the stress she’s under right now.
Truth is, that could happen to any of us, especially when our personal information is so freely available on the web.
If you want to protect your name, identity, and credit score, the best way to do so is to freeze your credit.
First, to clear up a misconception, if you freeze your credit, the credit lines you already have open will not be affected. You can use your credit as normal with no inconvenience.
However, freezing credit does have a few inconveniences. If you want to open a new line of credit or even apply for a new apartment, for instance, you’ll need to thaw your credit. Depending on the state you live in, this can cost anywhere from $2 to $10. Initially freezing your credit also costs about $10 per credit bureau.
My husband and I have had our credit frozen since 2009 when we had our eBay account hacked and $1,000 was purchased over night. I plan to keep our credit frozen for the rest of our lifetimes, thawing only when needed (like we did a few weeks ago to pre-qualify for a home loan), especially now that I know social security numbers and other personal information are so easy to find on the web.
Have you frozen your credit? If not, would you consider doing so?
(Editors note: Freezing your credit is the best way to stop a lot of this stuff from happening. It’s what many of the services like LifeLock (not recommended) really do. Alternatively, there are ID theft protection services like Credit Karma that you can use that will monitor your credit and credit score without the freeze, or in coordination with a freeze.)
Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.
Freezing credit is often a great option for those who think their identity may be compromised. The high-priced ‘credit protection’ services do nothing to prevent your identity from being stolen; they only report the theft after the fact. A freeze will prevent crooks from obtaining credit in your name.
Interesting. I have never heard of freezing/thawing credit!
I froze my credit for 7 years. There were several charge card numbers compromised. I too was hacked on E-Bay some years ago. It can be very nerve racking trying to unfreeze, but, that’s life these days.
I have no experience with this-but my sister had to freeze her credit. Her credit card was stolen and was used at a local gas station multiple times as well as an online store and the WalMart near by. She chose to freeze her credit because she knew she wasn’t going to be making any large purchases for a little while. It was very stressful for her.
Do you think freezing your credit is superior to credit monitoring? If so, why?
The Wallet Doctor–I do think freezing your credit is better because it stops fraud before it can even happen. Credit monitoring let’s you know after the fact.
I didn’t even know that this was an option. We haven’t frozen our credit, but it is constantly monitored by a credit company through our AAA membership. They email me every change, so I was notified when we just bought my car and when I applied for a new credit card. Overall, I like it.