Strategic Steps to Protect Your Identity in a Credit Breach

A few weeks ago, news broke about a major security breach at Target, causing widespread concern and anger. Hackers managed to access the credit card information of millions of Target shoppers during November and December, putting them at risk of identity theft.

The situation got worse when it was revealed that, besides credit card details, hackers also stole customer emails, phone numbers, names, and addresses. Target admitted that the breach was more severe than first thought, potentially affecting up to 110 million customers. Around the same time, Neiman-Marcus also disclosed a similar security breach affecting their customers during the holiday season.

If you’re like most Americans using credit cards for convenience, you might be wondering how to protect your information. Here are some tips:

1. USE CASH.
Switching to cash transactions can help you avoid electronic traceability, reducing the chances of your information being stolen in stores. Keep in mind, though, information can still be vulnerable in other places like hospitals or student loan services.

2. CHECK YOUR CREDIT REPORT YEARLY.
You’re entitled to a free credit report annually from annualcreditreport.com. You can get one report a year from each credit bureau—TransUnion, Equifax, and Experian. It’s smart to space out these reports over the year. For example, request a report from TransUnion in January, Equifax in May, and Experian in September. This way, you can regularly monitor for any suspicious activity.

3. CONSIDER CREDIT MONITORING SERVICES.
For about $80 to $100 a year, you can sign up for a credit monitoring service. They notify you quickly if there’s suspected identity theft, often before major damage occurs. Plus, they usually help restore your credit if stolen.

4. FREEZE YOUR CREDIT.
While checking your credit report and using monitoring services can help detect identity theft, they’re more of a reaction to the problem. The best preventive step is to freeze your credit. This action blocks anyone, including you, from accessing your credit or opening new accounts without unfreezing it first. To apply for new credit, you’d need to contact the credit bureau and use a personal pin to temporarily lift the freeze. Small fees might be involved in freezing and unfreezing your credit.

If you’re worried about security breaches and identity theft, using cash or freezing your credit are your safest bets. If those options aren’t practical for you, regularly checking your credit report or investing in a credit monitoring service can provide reassurance.