Identity theft is a security problem affecting millions of people every year. Data breaches continue to haunt big-name marketplaces, like Target, Yahoo, or Neiman Marcus. While these breaches are certainly aggravating for consumers, it’s important to step back and understand the different forms of data theft (and when it’s going to be legitimately costly for each individual).
Data breaches involving only credit and bank card accounts are serious, but ultimately not the costliest form of identity theft there is. The cost to victims significantly rises when someone uses stolen personal data to open new lines of credit or to commit personal fraud (like renting an apartment or purchasing a new car). Luckily, this kind of fraud can be stopped with a simple credit freeze.
A credit freeze may sound drastic, but I assure you, it’s the easiest way to stop fraudulent charges. The freeze won’t change the personal usability of any existing credit accounts, it will only prevent existing accounts from being refinanced or for any new line of credit being established without a credit “thaw” having been initiated by you, the account holder, in advance.
Read the steps to initiate a credit freeze in our article, “Freeze credit for added security,” in Columbia Daily Tribune. It takes 20 minutes to do, and will save you a lifetime of credit cleanup.
As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.
If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
Certified Financial Planner™ professional
Member of the Alliance of Comprehensive Planners
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This article is the property of Clarity Financial LLC.
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