What Is a Security Freeze?

Each year in the United States there are more than 8 million new victims of identity theft. Many of these victims find themselves repairing credit that they did not damage. A security freeze allows consumers to "freeze" access to their credit file so that anyone attempting to fraudulently open accounts in their name will come up against great opposition.

Is your credit protected?

What is A Security Freeze?

A security freeze works by placing a freeze with all three of the major credit reporting agencies; TransUnion, Equifax and Experian. By doing this a person attempting to steal a person's identity will not have luck because the creditor will not be able to check the credit file. The consumer can only allow her credit to be checked with a personal identification number. The PIN only temporarily lifts the security lock so that legitimate requests by the consumer can be made.

Security Freeze Laws

The majority of states have adopted some form of law to help consumers protect their credit. In fact, 47 of the 50 states and the District of Columbia have put into place laws that require each of the credit bureaus to help consumers protect their credit files with a security freeze. Alabama, Michigan and Missouri are the three states that have not adopted the security freeze law, as of 2009.

Voluntary Security Freeze

The three credit reporting agencies have offered a security freeze voluntarily since Nov. 1, 2007, to all consumers. In order for a consumer to successfully freeze access to his credit files he has to request a security freeze at each of the three major credit bureaus separately.

Security Freeze Fees

There is never a fee for a security freeze for identity theft victims regardless of what state you reside in. The fee for removing a security freeze ranges from state to state; in some states it is free to remove the freeze. If you choose to never remove the freeze then it will remain in place permanently.

Security Freeze Vs. Federal Fraud Alert

A security freeze differs from a federal fraud alert because a security freeze is permanent; a federal fraud alert lasts 90 days unless you renew it. Also the federal fraud alert can only be used by identity theft victims. The federal fraud alert does not stop the release of credit information, as the security freeze does. The federal fraud alert still allows your credit score to be seen.