Credit Freeze: How to Protect Your Credit From Fraud & Identity Theft

A growing number of Americans are experiencing online scams and data breaches, prompting increased concern about personal data security. A recent Pew Research Center study found that 73% of U.S. Adults have been the victim of some form of online scam or attack, highlighting the pervasive risk in the digital age.

While strong passwords and two-factor authentication are essential first steps, experts are increasingly recommending a credit freeze as a proactive measure to prevent fraudulent accounts from being opened. A credit freeze restricts access to your credit report, making it more difficult for identity thieves to apply for credit in your name.

The three major credit bureaus – Equifax, Experian, and TransUnion – allow consumers to freeze and unfreeze their credit reports free of charge. The process can be completed online, by phone, or by mail. Importantly, a credit freeze does not impact your credit score.

The rise in identity theft and credit card fraud underscores the need for heightened vigilance. According to data reported by The Motley Fool, the Federal Trade Commission recorded 503,450 cases of credit card fraud and 379,898 cases of other types of identity theft in the first three quarters of 2025 alone. These figures demonstrate the significant financial and personal costs associated with these crimes.

A credit freeze is not a complete safeguard. It prevents the opening of new fraudulent accounts but does not close existing ones that may have been compromised. Individuals who suspect their information has been stolen should take additional steps, such as monitoring their accounts for unauthorized activity and filing a report with the Federal Trade Commission.

Consumers can temporarily lift a credit freeze, known as a “thaw,” when applying for legitimate credit, such as a new credit card or a car loan. This allows lenders to access their credit report for the application process. The thaw can be scheduled for a specific period, after which the freeze automatically resumes.

As online threats continue to evolve, a credit freeze offers an additional layer of protection for consumers seeking to safeguard their financial information. While not a foolproof solution, it represents a proactive step in a landscape where data breaches are increasingly common.