Credit Freezes & ID Theft

The short version

Service members are prime targets for identity theft: frequent moves, deployments, and a steady paycheck. The two strongest defenses are free. A credit freeze blocks new creditors from pulling your report, which stops most new-account fraud, and an active-duty alert adds a layer while you are deployed.

Freezing your credit does not hurt your score and does not stop you from using your existing accounts.

Freeze your credit at all three bureaus

A credit freeze (also called a security freeze) locks your credit report so no one, including you, can open new credit in your name until you lift it. It is free to place and free to lift. You must do it at all three nationwide bureaus: Equifax, Experian, and TransUnion.

What a freeze does

• Blocks new-account fraud by stopping new credit pulls.
• Free to place and lift, by law.
• Does not affect your credit score.
• Does not stop you using current cards and loans.

Free tools for service members

• Active-duty alert: one year, renewable while deployed.
• Free credit monitoring for active-duty members.
• Fraud alert: tells lenders to verify your identity first.

A freeze is the strongest free protection there is. Place it at all three bureaus, and lift it only when you are applying for credit.

Source: CFPB; FTC, IdentityTheft.gov

Active-duty alerts and free monitoring

If you are deploying, place an active-duty alert. It lasts one year (renewable for longer deployments) and tells businesses to take extra steps to verify identity before opening credit. The bureaus also offer free electronic credit monitoring to active-duty members. Set both up before you leave.

If your identity is stolen

Move fast. Report it at IdentityTheft.gov to get a personalized recovery plan, freeze your credit if you have not, and dispute fraudulent accounts. Your installation legal office can help, and the Military Lending Act and SCRA may offer related protections.

If you are hit

• Report at IdentityTheft.gov for a recovery plan.
• Freeze your credit immediately.
• Dispute the fraud with the bureaus and creditors.

Reporting at IdentityTheft.gov creates an official record and a step-by-step recovery plan you will need to clear fraudulent accounts.

Source: FTC, IdentityTheft.gov

Do this now

1. Freeze your credit at Equifax, Experian, and TransUnion today.
2. Place an active-duty alert before you deploy.
3. Turn on free credit monitoring for active-duty members.
4. Save IdentityTheft.gov in case you ever need it.

FAQ

Does a credit freeze hurt my score?

No. A freeze has no effect on your credit score. It only blocks new credit pulls.

Is it really free?

Yes. Federal law makes placing and lifting a freeze free at all three bureaus.

What is the difference between a freeze and a fraud alert?

A freeze blocks new credit entirely until you lift it. A fraud alert (including the active-duty alert) tells lenders to verify your identity first but does not block access.

Do I have to freeze at all three bureaus?

Yes. Each bureau is separate, so freeze all three for full protection.

Sources & links

• CFPB, Credit reports and scores: consumerfinance.gov
• FTC, IdentityTheft.gov: identitytheft.gov
• FTC, Active duty alerts: consumer.ftc.gov