How Can We Prevent Identity Theft at Home

Two free tools make new accounts in your name harder to open. Add daily habits and you have a real defense.

Where prevention starts

Two tools guard your credit file, and both are free. Then you add daily habits that keep your details out of the wrong hands.

The strongest tool: a credit freeze

The CFPB says a credit freeze, also called a security freeze, stops prospective creditors from accessing your credit file. The CFPB says a freeze can help stop an identity thief from opening a new account in your name.

The best part is the price. The CFPB says security freezes are free and you have a right to them by law. You can freeze and unfreeze your credit records for free at the three nationwide credit reporting companies, Equifax, Experian, and TransUnion. TransUnion adds that freezing, unfreezing, and temporarily lifting a freeze costs nothing.

Worried about your score? The CFPB says security freezes do not impact your credit scores in any way.

There is one tradeoff, and it is honest to say it. The CFPB says a freeze also stops you or others from opening accounts in your name. So when you apply for a loan or a credit card, you lift the freeze first, then put it back. TransUnion says a credit report stays frozen until you request its removal, so it keeps working while you forget about it.

For the step-by-step process at each bureau, see our guide to identity fraud protection.

The lighter-touch option: a fraud alert

A freeze locks the door. A fraud alert puts a note on it.

The FTC says an initial fraud alert tells businesses to check with you before opening a new credit account in your name. Equifax says an alert encourages companies to take steps to verify your identity before extending credit. TransUnion puts it simply: a fraud alert tells creditors to take extra steps to verify your identity first. Equifax says that can make it harder for someone to open unauthorized accounts in your name.

A freeze and an alert part ways on one point. The FTC says businesses can still see your credit report when an alert is in place. An alert only asks a business to pause and confirm who is really applying.

Alerts are free. Cost is not a factor here. Experian says an alert costs nothing to place, and Equifax says its two alert types carry no fee. Experian also says adding an alert does not hurt your credit history or credit scores in any way.

You get three types, and you have the right to request any one that applies to you, according to Experian:

Initial alert. Experian says this is for when you suspect you have been or may become a victim of identity theft. Equifax says it lasts one year and can be renewed.
Extended alert. Equifax says this can be placed if you are a victim of fraud or identity theft, and it lasts 7 years.
Active duty alert. Experian says this is for an active duty service member who wants to protect their credit file. Equifax says it works like an initial alert and also lasts a year.

Here is the easy part. Equifax says you may contact any of the three nationwide credit bureaus to request a fraud alert. Equifax says that bureau will send your request to the other two. Experian confirms an alert placed at any bureau is shared with the others. TransUnion says an alert shows up on your report the same day you place it.

Freeze or alert?

A freeze is stronger. It blocks access instead of just asking for a check. An alert is lighter and simpler, since one request covers all three bureaus.

You do not have to pick. The FTC says that even if you already have a credit freeze in place, you can also place a fraud alert. The FTC also says freezes and alerts can help stop someone who already stole your identity from misusing it again. If you were hit once and refuse to be hit twice, both is a reasonable answer.

Everyday habits that guard your information

Freezes and alerts guard your credit file. Habits guard everything else. USAGov gives four that anyone can start today.

Do not answer calls, texts, social media messages, or email from numbers or people you do not know. Ignore it.

Do not share personal information like your bank account number, Social Security number, or date of birth.

Store your Social Security card in a safe place, and do not carry it in your wallet.

Review your credit card and bank account statements. USAGov says to watch for and report unauthorized or suspicious transactions.

Protecting a child's information

USAGov says to find out how to protect your child's information from identity theft.

The FTC says the process for getting a credit freeze for a minor is different than getting one for an adult. TransUnion says a parent or guardian can place a protected consumer freeze for children aged 15 and younger. The FTC says a child's freeze stays in place until you tell the credit bureaus to remove it.

For the full process, see our page on identity fraud protection.

How to check whether prevention is working

No defense is perfect, so keep an eye out. Watch your statements for charges you did not make. Our guide on how check for identity theft walks through the signs in detail.

If you find something, go straight to our article on what to do if identity theft.

If it happens anyway

Sometimes a thief gets through anyway. That is not a failure on your part, and it is not the end of the story.

Start with our guide on what to do if identity theft. If the misuse shows up as charges on your card, our article on credit card fraud covers that case.

The freeze and the alert you already placed will still be on your side. The FTC says they can help stop the thief from misusing your identity again.