In order to stop identity theft, most states have adopted laws giving consumers the right to put a "security freeze" on their credit files. This can prevent crooks from using stolen information to open fraudulent accounts.
A security freeze allows you to block access to your credit file. When a security freeze is in place, no one can open a new account in your name because potential creditors will not be able to check your credit.
As a result, no one can open up a new account or to get new credit in your name. If you subsequently decide to apply for credit, you can lift the freeze temporarily so legitimate credit applications can be processed.
Generally, the three major credit bureaus charge $5 to $10 to put on or lift a security freeze. In some states, there is no charge for seniors.
For more information about security freeze laws, go to the Federal Trade Commission’s web site at www.ftc.gov/bcp/edu/microsites/idtheft/credit-freeze.html. In addition, Consumers Union offers on online guide with step-by step instructions for implementing a security freeze at www.consumersunion.org/campaigns//learn_more/003484indiv.html.
