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How to Choose Between a Credit Lock and Freeze to Secure Your Identity

January 9, 2025 By Teri Monroe Leave a Comment

Credit Freeze vs. Credit Lock to Protect Your Identity
Image Source: 123RF.com

Both a credit lock and credit freeze can protect your credit report from being used for opening a new account or applying for a loan. If you’ve been victimized by identity theft, both are smart options. However, a credit lock vs. a credit freeze differ in their implementation. So, which one is right for you?

What Is a Credit Freeze?

A credit freeze is a free service guaranteed by law. When you initiate a credit freeze, most of your credit report will be limited. Lenders can’t evaluate your credit report until you lift or thaw the freeze. However, your credit report can still be viewed by companies responding to non-credit applications, your current creditors, debt collectors, and government entities. You can also still view your report if it’s frozen.

You can lift the credit freeze permanently or for a set amount of time if you are applying for a loan or a credit card. This can be as short as a day or a week, whatever you choose. However, with a credit freeze, you’ll have to lift it with each credit bureau individually. All bureaus handle lifting a freeze differently, so follow the appropriate steps for each one.

What Is a Credit Lock?

A credit lock is almost the same as a credit freeze but provides extra features and protections. Additionally, it can also come with a fee. You can initiate a credit lock with Experian, TransUnion, and Equifax:

  • Experian CreditLock is available for $24.99 per month
  • Equifax provides credit locks free to consumers through Lock & Alert
  • TransUnion includes credit file locking for both your TransUnion and Equifax credit files for $29.95 per month

Some features of credit locks include notifications when anyone requests access to your locked credit report, alerts when your information appears on the dark web, identity theft insurance, and fraud resolution. Of course, each bureau offers different services but these additional features can offer you further protections.

How Do I Initiate a Credit Freeze vs. a Credit Lock?

Initiating a Credit Freeze vs. Credit Lock
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Initiating a credit freeze or a credit lock online can be as simple as a toggle on or off feature. You must sign up with each credit bureau to do so. You can also call each credit bureau or request a freeze or lock by mail. If so, you will need some accompanying identifying documents and information such as a recent utility bill, social security number, all your addresses in the last two years, your date of birth, and a government-issued ID.

When to Use a Credit Freeze vs. Credit Lock

If you suspect that you’ve been a victim of identity theft or your information has been compromised, both a credit freeze and credit lock are good options. However, a credit freeze is probably more appropriate if you don’t need additional features or don’t want to pay for a subscription. A credit freeze is also your only option if you are freezing the credit report of a minor. On the other hand, a credit lock can provide you additional protections and alerts. This can make dealing with the aftermath of identity theft more manageable.

Read More

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  • 9 Scams That Millennials Are Falling Victim To
Teri Monroe Headshot
Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: General Finance Tagged With: credit freeze, credit lock, identity theft

9 Scams That Millennials Are Falling Victim To

January 7, 2025 By Teri Monroe Leave a Comment

Scams millennials fall for
Image Source: Pexels

According to GoBankingRate, Millennials are falling for scams at a higher rate than other generations. In their survey 35% of millennials have fallen victim to phone scams, whereas only 25% of Gen Xers reported the same. The reason for many millennials falling victim to scams is that they have grown up online and tend to put their trust in digital spaces and they believe in their ability to spot a scam too much. Here are nine common scams that millennials are falling for.

1. AI-Powered Voice Cloning Scams

AI scams
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The FBI recently posted a public service announcement listing some of the ways that criminals use generative AI to trick victims. One common scam is using voice cloning to mimic friends and family, politicians, government agencies, or businesses. The FTC’s 2023 Consumer Sentinel Network Data Book found that about 20% of people targeted by an imposter scam lost money, and the median loss was $800 and government scams led to median losses of over $14,000. If you receive a random call, make sure to validate it before giving out personal information or sending any funds.

2. Romance Scams

Romance scams aren’t just happening on dating apps like Hinge. Scammers are getting more creative and millennials are falling for the scams. You may get an accidental text that says, “Sorry I’m running late. Be there in 10 minutes.” Scammers use these accidental texts to start up a conversation and plant the seeds for a romance scam. You may even be talking to a bot that can send thousands of these messages at a time.

3. Employment Scams

Employment scams millennials are falling for
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If a job is too good to be true it probably is a scam. Millennials are falling for employment scams that have detrimental consequences. Some scammers play the long game and set up interviews, while others advertise easy ways to make money through tasks. Some will steal your personal information and others will pay you a large sum of money upfront and ask you to send a small amount back, stealing your account information.

4. Event Ticket Scams

Beware of purchasing tickets on unverified sites or on social media. Millennials are also falling for scams on established sites like Ticketmaster. However, Ticketmaster will do their best to make it right if you buy tickets that disappear from your account or are fake.

5. Celebrity Endorsement Scams

Thanks to AI, there are many products that claim to be celebrity endorsed but are not. This endorsement might prompt you to buy a product or make an investment that’s a scam. The videos and images produced are deepfakes and can be hard to spot. Do your research before getting caught up in these scams.

6. Text Scams

Most scams start with a text message. Bad actors pose as the post office trying to deliver a package, your bank texting you about suspicious activity, or a credit card company trying to approve a charge. If you receive a random text about a package delivery, don’t click the link in the text. Even if the website that the link goes to looks like your bank’s or USPS, it’s probably a scam to get your information.

7. Crypto Currency Investment Scams

Cryptocurrency scams have skyrocketed as crypto has gained popularity. Scams usually involve fake prizes, contests, giveaways, or early investment opportunities. Bad actors may hack friends’ and family’s social media accounts and send you information about a great crypto investment opportunity.

8. Marketplace Scams

Always read seller’s reviews before making a purchase online and buy on trusted marketplaces that will protect your money. Millennials are falling for scams online where they buy an item online from a fake website or social media like TikTok and then the seller’s profile disappears and they never receive the item or their credit card information is stolen. Not every site online is trustworthy or protects your information. If you are a victim of a scam and you use your credit card, make sure to start a chargeback.

9. Refund Phishing Scams

A new way that scammers are profiting from stolen credit cards is by making a fraudulent purchase from a fake website. The charge will have the website name and email or phone number so when the credit card holder calls or emails to dispute the charge, the scammer will get more personal information.

Scams Affecting Millennials

Just because millennials are in some cases more technologically savvy, doesn’t mean that they aren’t falling for scams especially online. Scammers are getting more sophisticated every day so don’t think that you are immune. If you are the victim of a scam, be sure to report it to local authorities, the FTC, and contact your bank or credit card company.

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Teri Monroe Headshot
Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: General Finance Tagged With: AI scams, identity theft, millennial scams

7 Unbelievable Yet True Cases of Identity Theft

December 23, 2024 By Teri Monroe Leave a Comment

Identity Theft using PayPal accounts
Image Source: Pexels

Identity theft can be a dire situation. More than 40% of Americans have fallen victim to this crime. Usually, a bad actor hacks into your bank account, takes out loans in your name, or opens and maxes out credit cards. But there are more intricate schemes happening that may shock you. Here we’ll take a look at seven schemes that you need to protect yourself against.

1. The Fake Hostage Scam

Have you heard about this scam where someone calls saying that they have a loved one held hostage? One Indiana woman fell for the scam because she heard screaming in the background. The scammers demanded $1,500 be sent to their Venmo or they would shoot her mother. This scam takes many forms and sometimes scammers say that your loved one has been in a terrible accident and they need money for their care. It’s always a good idea to verify the situation before sending any money.

2. Scamming Lovers

Romance scam
Image Source: Pexels

Have you seen the Netflix documentary, The Tinder Swindler? Shimon Hayut is a skilled con artist who posed as a wealthy businessman, making many women fall for him. He would then say that business rivals were threatening his life and he needed credit cards and loans. Of course, he maxed out the credit cards and defaulted on the loans leaving his victims in financial ruin. It’s estimated that he swindled around $10 million from his targets. Hayut’s scam is similar to many romance scams that many individuals fall for every day. If your online lover starts asking for money, it’s time to move on.

3. Re-routing The Mail

Do you get a barrage of emails from companies asking if you want to have your bills sent to you paperlessly? You probably should take them up on online billing because of this scam. Abraham Abdallah was able to reroute mail and packages of more than 200 rich and famous celebrities, including Oprah and Spielberg, just by changing their mailing addresses to fake addresses around New York. He allegedly used web-enabled mobile phones and virtual voicemail services to track packages ordered by his targets and pick up messages from anywhere. Abdallah obtained banking information, social security numbers, and credit card accounts of victims for more than six months. He even tried to transfer $10 million out of Thomas Siebel’s account, founder of Siebel Systems. While mail scams are usually not this grandiose or successful, be careful what you send in the mail to protect yourself from identity theft.

4. Children as Targets of Identity Theft

Have you heard about the story of the mother who posed as her daughter so that she could go back to high school? Wendy Brown stole her daughter’s identity and attended a new high school so that she could be on the cheer team. Only 15 days later, she was sentenced to jail time. While moms don’t often impersonate their children, child identity theft has become a common phenomenon. Usually, scammers use children’s social security numbers to open credit cards, take out loans, or file fake tax returns. Children’s identities are much easier to steal than adults’. If you notice that your child is receiving offers for credit cards or not age-appropriate mail, take a look at their credit report and consider freezing it.

5. Swapping Phone Numbers

Youtuber Jacy Erin’s parents fell victim to identity theft when her mom’s email was hacked. The hackers were able to obtain sensitive information like her phone number and credit card information. They changed her mother’s phone number before putting $40,000 in charges on her credit card. When the credit card company called to confirm the charges, the call went right to the hackers.

6. Insider Job

Philip Cummings pleaded guilty in 2004 to one of the largest identity theft cases in the United States. Cummings worked for Teledata Communications, a company that helped run routine credit score checks for other companies. When Cummings quit his job he also took the passwords of 33,000 customers. He then sold the information to criminals. Through drained bank accounts and credit card charges, it’s estimated that victims of this scheme lost $50-$100 million. While breaches of this kind are historic, data breaches happen every day. If you are notified of a data breach where your information may be affected, be sure to set up a credit monitoring service to protect yourself.

7. PayPal Scheme

Just like Cummings, an IT professional Kenneth Gibson took private information he had access to from his employment. He created software that would create fake PayPal accounts for thousands of people. He then used the PayPal accounts to create new credit accounts. He flew under the radar for a while because he would only transfer small amounts of money, but in total, he stole more than $3.5 million.

Protecting Yourself from Identity Theft

According to recent data from the Federal Trade Commission (FTC), over 1 million cases of identity theft are reported each year. It’s estimated that millions more cases go unreported each year as well. While identity theft is a common crime, there are steps you can take to protect yourself. Always remember to monitor your credit card, bank statements, and credit score. You may also want to set up a monitoring service. With knowledge and the right tools, you can protect your identity from criminals.

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Teri Monroe Headshot
Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: General Finance Tagged With: hacked, identity theft, stolen identity

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