More On the Freeze

Posted on July 1st, 2009 by Alicia Diefenbach |

In my last post I wrote about the benefits of putting a ‘security freeze’ on your credit report and how to get that freeze in place. The freeze prevents your credit profile from being shared with creditors and insurance companies.

Knowing that anyone can place a security freeze on their credit report begs the question: Who should consider taking advantage of the security freeze?

The obvious answer is victims of identity theft. Trying to clean up your credit report after someone steals your identity can be expensive, costing you both time and money to get the job done. If that identity thief continues to open accounts in your name it turns a frustrating task into a seemingly endless one. You slap a freeze on your report, you limit additional damage from being done to your credit score.

There are less obvious candidates for a freeze. Young children, for example. Unfortunately stealing the identities of children isn’t new. Your kids may not be negotiating the kinds of financial transactions that expose their information to the public, but they usually have clean slates when it comes to their credit reports.

Sadly, the perpetrators are often known to the victim. Extended and even immediate family members take advantage of youthful, unblemished credit reports not yet ravaged by foolish financial choices. Believing that using the social security number of a family member is ‘borrowing’ rather than ‘stealing’ is a strange, yet all-too-common phenomenon. Sharing a bloodline doesn’t constitute the right to sharing the social security number of a family member. Concerned parents may contact each of the three credit bureaus directly to obtain the procedures for placing a security freeze on the credit report of their minor child as a preventative measure.

There are other vulnerable members of society that can benefit from a freeze, too; the elderly, for example. Because the elderly have often already purchased their homes and cars, obtained the credit cards they want, and sent their children through college, they’re less likely to be conducting credit based transactions. Elder members of society who don’t anticipate needing to access their credit reports in the near future should consider availing themselves of the security freeze as one more protective measure against this time consuming crime.

Another candidate for a security freeze? The deceased. Identity theft is one of the few financial crimes to target its victims beyond the grave. The theft of a deceased relative’s social security number is a two-pronged blow to family members. Not only are they grieving the loss of a beloved relative and navigating associated legal hurdles, surviving family members are left to dispute claims of mounting debt and unpaid bills. Notifying each of the credit bureaus of the relative’s death and putting the security freeze in place can minimize the suffering of family members in the wake of a loss.

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