Credit Freeze and Fraud Alerts

Participants impacted by breach are first recommended to add a credit freeze, fraud alert, or both to monitor their credit report.

According to the Social Security Administration (SSA), affected consumers should notify one of the following three major credit bureaus:

Equifax at 1-800-525-6285

Experian at 1-888-397-3742

TransUnion at 1-800-680-7289

Once notified, the company will call the other credit bureaus to inform them about the freeze or alert.

Clients will also need to provide their Social Security number and address to the credit bureaus. Once reported, they will receive a PIN, in which they can then use to lift of remove the freeze as needed.

While both effective, credit freezes are generally seen as more powerful because they restrict access to credit reports, therefore making it difficult for hackers to open accounts or credit lines in a client’s name, explains Chip Lupo, a writer and analyst for personal finance company WalletHub. Fraud alerts, on the other hand, warn creditors to take extra steps in verifying their identity, but it doesn’t necessarily deny access to threat actions, Lupo adds.

 “A credit freeze is more effective than a fraud alert because it entirely locks down your credit report, which will prevent most third parties from accessing your credit report without your explicit permission,” he said. “This means that even if a fraudster has your personal information, they cannot open new accounts in your name.”

Still, impacted consumers are still recommended to add a fraud alert in the event of a breach, just for added safety. This signals to potential creditors that additional verification is required before extending credit, which could reduce the risk of identity theft, Lupo explains. Clients can choose between an initial fraud alert, which lasts 90 days and can be renewed, or an extended alert that lasts seven years. 

“To protect your retirement, it’s essential to take preventive measures such as fraud alerts or credit freezes, which add layers of security to your financial information and reduce the risk of unauthorized access,” he said.