A credit freeze is a powerful tool to block unauthorized access to your financial accounts, but it isn’t foolproof. Scammers have developed sophisticated methods to target personal information in ways that a freeze can’t block. Here’s what you need to know and how to better protect yourself.

What a Credit Freeze Does

• Blocks most lenders from accessing your credit history.
• Prevents scammers from opening new accounts or loans in your name.
• Easy and free to set up via the three major credit bureaus.

What a Credit Freeze Doesn't Cover

Tax Refund Fraud
- The Risk: Scammers use your Social Security number to file false tax returns and claim refunds.
- Solution:
- E-file your taxes early.
- Opt for an Identity Protection PIN from the IRS to block fraudulent filings.

Driver’s License Fraud
- The Risk: Thieves use stolen license numbers to create fake IDs, rack up violations, or commit check fraud.
- Solution: Monitor activity and report any unauthorized use of your license to your state DMV.

Health Insurance Fraud
- The Risk: Scammers use your health insurance details to claim benefits or send fake bills to your address.
- Solution:
- Regularly check your health insurance statements.
- Notify your provider of any suspicious activity.

P2P Payment Scams
- The Risk: Fraudsters exploit peer-to-peer (P2P) payment apps like Venmo or Zelle. These apps often lack the protections of credit cards, making it difficult to recover stolen funds.
- Solution:
- Only send money to trusted contacts.
- Enable app security features like PINs or biometrics.

Child Identity Theft
- The Risk: Scammers use children’s Social Security numbers to apply for benefits, open accounts, or take out loans.
- Solution:
- Place a credit freeze on your child’s account.
- Check for unauthorized activity when they approach financial independence.

What Else You Can Do to Protect Yourself

1. Use Account Alerts

Set up notifications for suspicious activity in your financial accounts. Many banks and credit card companies can alert you to new transactions, logins, or changes.

2. Check Your Credit Report

• Regularly review your credit report for unauthorized accounts.
• Until the end of the year, you can get a free weekly credit report from each of the three major bureaus at AnnualCreditReport.com.

3. Enable Two-Factor Authentication (2FA)

• Add an extra layer of security by requiring a code sent via text, email, or an app to access your accounts.
• Use security keys or tokens where possible.

4. Strengthen Passwords

• Use strong, unique passwords for each account.
• Consider using a password manager to securely generate and store passwords.

5. Monitor Personal Information

• Consider a trusted identity theft protection service to scan the dark web, monitor your data, and assist with recovery if fraud occurs.

When to Seek Help

• Identity Theft Resource Center (ITRC): Offers free support for victims of fraud and identity theft.
• Some employers, credit cards, or homeowner’s insurance policies may include free or discounted identity theft coverage.

Summing it up

• A credit freeze is essential but doesn’t stop all forms of identity theft.
• Proactively monitor your accounts, enable security features, and use tools like 2FA and strong passwords.
• Stay vigilant to protect against newer scams and reduce the risk of fraud.

With layered defenses, you can better safeguard your identity and finances.

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