Why a Credit Freeze Alone Won’t Stop Identity Theft – Consumer Reports

Why a Credit Freeze Alone Won’t Stop Identity Theft – Consumer Reports

https://www.consumerreports.org/identity-theft/why-credit-freeze-alone-wont-stop-identity-theft-a1061834203/
  • a credit freeze alone can’t protect you from everything. A criminal could still obtain your Social Security number or driver’s license information, steal your tax refund, take out loans in your name, or hijack other accounts.That’s why you need to take additional steps to minimize the risks from hackers and thieves
  • Resolving identity theft issues may mean spending a few hours on the phone with banks, the police, and government agencies. But for complex cases, the process could take months or even years.And it could prove costly because of legal fees and other expenses to clean up the fraudulent accounts
  • setting up a credit freeze is free and relatively easy to do.
  • But even if you do put a freeze on your credit, there are plenty of ways criminals can come after you.
  • What a Freeze Doesn’t Cover
  • Tax Refunds. By using your Social Security number, scammers can file false income tax returns in your name and claim refunds.
  • Health Insurance. Identity thieves can use your information to fraudulently claim healthcare benefits from private health insurance, Medicare, or Medicaid. In some cases, they may use your insurance information for coverage, but in others, they may tell a provider to send the bill to your address, Velasquez says.
  • Driver’s License. If fraudsters gain access to your driver’s license number, they can create fake licenses
  • P2P Scams.
  • Cell Phone Account Fraud. This crime occurs when thieves open a phony mobile phone account in your name, then use it to access your bank account, sign up for credit cards, or sell the number for other criminals to use. Last year 18 percent of identity fraud victims had mobile phone accounts opened in their name
  • Child Identity Theft. Identity thieves may get hold of a child’s Social Security number and use it to apply for government benefits, open bank and credit card accounts, or rent a home. The fraud may not be discovered until the victim is older, perhaps because he or she is rejected for a loan or credit card due to damaged credit.

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