We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Security Freeze: A Key Defense Against Identity Theft
Definition & Meaning
A security freeze is a measure that allows consumers to restrict access to their credit reports. When a security freeze is in place, credit reporting agencies cannot release a consumer's credit report to third parties without the consumer's explicit permission. This prevents identity thieves from opening new accounts in the consumer's name, as creditors cannot review the credit report to assess creditworthiness.
Table of content
Legal Use & context
Security freezes are primarily used in consumer protection law. They are relevant in situations involving identity theft and credit fraud. Consumers can initiate a security freeze to safeguard their credit files, especially if they suspect that their personal information has been compromised. Legal forms related to security freezes can help consumers manage the process of placing or lifting a freeze on their credit reports.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A consumer discovers that their personal information has been stolen. They place a security freeze on their credit report to prevent any unauthorized accounts from being opened in their name.
Example 2: A person who has placed a security freeze wants to apply for a new credit card. They temporarily lift the freeze using their PIN, allowing the credit card issuer to access their report for the application process. (hypothetical example)
State-by-state differences
State
Details
California
Allows consumers to place a freeze for free and requires credit bureaus to provide a PIN for lifting the freeze.
New York
Also allows free security freezes and mandates that credit bureaus notify consumers when a freeze is lifted.
Texas
Consumers can place a freeze for free, but they must request it in writing if they do not have a PIN.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Credit Lock
A service that allows consumers to lock their credit reports, similar to a freeze.
Locks can often be lifted instantly via an app, while freezes may require a PIN.
Fraud Alert
A notice that warns creditors to take extra steps to verify identity before extending credit.
Fraud alerts do not prevent access to credit reports, unlike freezes.
Common misunderstandings
What to do if this term applies to you
If you believe a security freeze is necessary, you can contact the major credit reporting agencies to initiate the process. You will need to provide personal information and may have to pay a fee, depending on your state's laws. Consider using US Legal Forms to access templates that can guide you through the necessary steps. If your situation is complex, consulting a legal professional may be beneficial.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.