Credit account freeze
(Photo: Reuters)

Here are five easy steps if you are a victim of identity theft, according to a recently published article.

It is very devastating for a person to fall as a victim of identity theft. It would be a financial disaster. However, there is no need for you to worry because you can immediately freeze your credit account.

According to Javelin Strategy and Research, the practice of opening a new credit account under someone else's name without permission has reached $3.4 billion in 2018. One way to prevent circumstances like this is to freeze the credit account.

If you think that your Social Security Number is stolen or someone else is using it, freeze your credit account immediately using the five easy steps.

Here are the steps on how to do it according to finance experts:

1. CONTACT THE THREE MAJOR CREDIT REPORTING AGENCIES

If you think that someone else is using a credit under your name without your permission or if your Social Security number is stolen, place an initial fraud alert on your credit report, which will last for 90 days. Through this, your creditors will be notified that your identity or credit account is compromised. 

If this happens, you only need to contact one of the three major credit bureaus. These bureaus are Experian, Equifax, and Transunion. One of them receives your request, and they will pass along your request to the other two major credit bureaus. 

However, it is essential to remember that once your credit freezes, you have to contact each credit bureau individually. 

2. PROVIDE PERSONAL INFORMATION

Do not be surprised if Experian, Equifax, and Transunion ask for your personal information. This is to make sure that they are freezing the correct account. The following is the information they will ask from you:

  • Full name
  • Date of birth
  • Social Security number or individual taxpayer identification number
  • Phone number
  • Email address
  • Current address 

3. CREATE A PERSONAL IDENTIFICATION NUMBER

The two major credit bureaus, Experian, and Transunion will be asking you to create a Personal Identification Number (PIN). At the same time, Equifax does not do it, but they have their way of validating that it is you. Your PIN will help you manage your account in the future, and that includes reviewing your frozen account, temporarily lifting it, or removing it altogether. 

Take note that you have to make sure that your PIN is easy to remember but not too simple as to protect it from being stolen again.

4. VERIFY YOUR IDENTITY

There are some questions that you are required to answer to make sure that you are who you say you are. These questions will help you to be protected from any fraudulent activities like identity theft. Some of the questions that will be asked regarding your mortgage, your present address, and how long you have lived there, where were you during a specific time, and more. Through this, it will be hard for the identity thief to use your account.

5. KNOW WHEN TO LIFT THE FREEZE

Once you freeze your account, only you can view credit reports. This also means that you cannot apply for credit cards. However, you can unlock your frozen account and make it possible for lenders to view your credit report for a certain period that could range from one to 30 days. 

Read related article: 5 Factors That Determine Your Credit Score