Mar 9, 2018 4 min read

Last July, Equifax endured the biggest data breach in U.S. history. Recently, it was discovered this breach was even bigger than first realized.

It affected 147.9 million people, almost half of the nation’s population. A recent survey discovered almost 50 percent of adults have not checked their credit since this event. Stolen information could cause you problems for years to come. This is important, so we are going to review again what you can do to protect your family.

The Equifax credit breach is one of the most troubling security lapses ever. Credit bureaus keep records of all of your credit transactions. They list accounts you have, your payment history and many other facts. New potential creditors check these records when you apply for new credit. Information in your credit file helps to determine whether you get a loan and the interest rate you will pay.

Equifax is one of three major credit bureaus. Your files at each bureau are similar, but not necessarily identical, because some creditors report your results to some of them. Your credit score not only is used to determine whether you qualify for a loan. Sometimes it is used to determine whether you get hired for a job. Companies want financially responsible employees. And sometimes a credit score is used when applying for insurance.

Everyone should regularly review his or her credit file. The official government website to do this is www.annualcreditreport.com. There is no cost to do this every 12 months. You can see all three major credit reports, and if you find mistakes such as accounts you did not open, you can have them removed. You cannot remove negative information about your credit if it is factual.

Reviewing credit files should be an annual event.

Most people also should place a credit freeze on all three credit files immediately. A credit freeze keeps anyone from opening new credit in your name until you unlock it. If you will not need to open something in the next few weeks, say to buy an auto or real estate, you probably should lock your credit down.

A credit freeze does not prevent you from using existing credit. Your credit cards and other credit lines will stay in place and continue to function. It’s just no new accounts can be opened by criminals trying to establish new credit in your name.

About 148 million people left their most sensitive personal information – including Social Security number and date of birth – exposed to potential criminals. This information is readily available in your Equifax credit file.

You need to file the freeze at all three bureaus because some potential creditors do not check all three. This may cost $10 for each, and it may cost the same amount to unfreeze. Congress and a large group of state attorney generals are trying to take actions to remove these fees. That could take time, so don’t wait.

You can freeze by telephone or online: Equifax 866-349-5191/www.freeze.equifax.com; Experian 888-397-3742/www.experian.com/freeze; and TransUnion 888-900-8872/www.transunion.com/credit-freeze/place-credit-freeze.

Credit monitoring does not protect you; it just alerts you after someone has stolen your identity. A fraud alert offers a little more protection than credit monitoring, but does not provide full security. That requires the business to alert you if someone is trying to open a new account for verification. It expires and must be renewed every 90 days.

A credit freeze offers your family the best protection. Remember, family members might have individual credit files that need to be protected separately. Take preventive action today.

Gary Boatman is a Monessen-based certified financial planner and author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, contact Rick Shrum at rshrum@observer-reporter.com.