#1 Method to Protect Your Identity

Protect Your Identity: Why You Should Lock Your Social Security Number Today

Your Social Security number (SSN) is one of the most important pieces of financial information in your life. It helps you file taxes, receive income from your job, open credit accounts, qualify for retirement benefits and identify yourself to the government. Why is protecting your identity interwoven with your SSN?

Identity theft is a growing concern in our digital age, affecting millions of people each year. One of the most effective ways to safeguard yourself against identity theft is by locking your SSN. This comprehensive guide will delve into the benefits of freezing your SSN, real-world examples of SSN theft, and provide a step-by-step process for doing it yourself.

What Does Locking Your Social Security Number Mean?

Locking your Social Security Number prevents anyone, including you, from accessing or changing your Social Security record. You can lock your SSN online at E-Verify or by calling the Social Security Administration at 1-800-772-1213.  This makes it significantly harder for criminals to assume your identify or open new accounts, loans, or credit cards in your name.

Top 10 Benefits of Locking Your Social Security Number

 

1. Protects Against New Account Fraud

One of the primary benefits of locking your SSN is the protection against new account fraud. According to the Federal Trade Commission, new account fraud occurs when a thief uses your personal information to open new accounts, such as credit cards or loans. When your SSN is locked, even if a thief has your SSN, they cannot access your credit report to open these fraudulent accounts.  Protect Your Identity

2. Reduces the Risk of Identity Theft

Locking your SSN significantly reduces the risk of identity theft, one of the fastest-growing crimes worldwide. In 2022, over 1.4 million cases of identity theft were reported in the United States alone. By preventing unauthorized access to your credit report, you make it substantially more difficult for criminals to steal your identity and wreak havoc on your financial life.

3. Safeguards Your Credit Score

Your credit score is crucial for obtaining loans, mortgages, and even certain jobs. Identity theft can severely damage your credit score, taking years to rebuild. By freezing your SSN, you protect your credit score from unauthorized inquiries and new accounts, ensuring that it remains intact and unaffected by criminal activity.

4. Provides Peace of Mind

One of the most overlooked benefits of freezing your SSN is the peace of mind it provides. Knowing that your personal information is secure can help reduce stress and anxiety related to potential identity theft. With your SSN frozen, you can feel confident that you’ve taken a proactive step to protect yourself against one of the most common forms of financial fraud.

5. Prevents Unauthorized Use of Personal Information

Thieves often use stolen SSNs for various purposes beyond just opening new credit accounts. They can use your SSN to file false tax returns, claim government benefits, or even commit crimes in your name. Locking your SSN makes it significantly harder for criminals to misuse your personal information in these ways.

6. Saves Money and Time on Fraud Resolution

Resolving identity theft can be both time-consuming and expensive. Victims often spend months or even years trying to clear their names, repair their credit, and resolve fraudulent activities. By locking your SSN, you can prevent identity theft before it happens, saving yourself from the financial and emotional toll of resolving fraud.

7. Protects Your Children’s Future

Children are often prime targets for identity thieves because their credit is usually unmonitored and unblemished. By locking your child’s SSN, you ensure their credit remains clean until they are old enough to use it themselves. This proactive measure can save them from potential issues later in life when they apply for their first credit card, student loan, or mortgage.

8. Acts as a Strong Deterrent to Thieves

A frozen SSN is less attractive to thieves. If they know they cannot easily access your credit report or open new accounts, they are more likely to move on to an easier target. This deterrent effect alone can reduce your risk of becoming a victim of identity theft.

9. Protects Against Synthetic Identity Fraud

Synthetic identity fraud is a sophisticated type of fraud where criminals combine real and fake information to create a new identity. Your SSN can be used as the foundation for these synthetic identities. Freezing your SSN prevents criminals from using your number in these schemes, protecting both your financial stability and your reputation.

10. Complements Other Security Measures

Locking your SSN complements other identity protection measures, such as using strong passwords, enabling multi-factor authentication, and regularly monitoring your credit report. It adds an additional layer of security, making it even harder for criminals to access your personal information and commit fraud.

Protect Your Identity

Three Real-Life Examples of SSN Theft and Its Consequences

Example 1: The Infamous Equifax Data Breach

In 2017, Equifax, one of the three major credit reporting agencies, experienced a massive data breach that exposed the personal information, including SSNs, of over 147 million Americans. The breach resulted in billions of dollars in losses, countless hours spent on credit monitoring, and a surge in identity theft cases. Many victims had their identities stolen and suffered significant financial harm. If these individuals had locked their SSNs, they could have mitigated some of the risks and potential damages caused by this breach.

Example 2: The IRS Tax Fraud Scheme

In 2016, the Internal Revenue Service (IRS) detected a significant tax fraud scheme where criminals used stolen SSNs to file fraudulent tax returns and claim refunds. Victims of this scheme faced delayed tax refunds, extensive paperwork, and months of investigation to prove their identity and clear the fraudulent claims. A frozen SSN could have helped prevent these fraudsters from filing taxes in the victims’ names.

Example 3: Synthetic Identity Fraud Using Children’s SSNs

In 2019, a report by Javelin Strategy & Research found that over 1 million children were victims of identity theft, with two-thirds of those cases involving synthetic identity fraud. In many cases, thieves used stolen SSNs from children to build fake identities, which were then used for financial gain. Freezing these SSNs would have rendered them useless to criminals, preventing the fraudulent activity from occurring.

Final Thoughts on Freezing Your Social Security Number

Locking your Social Security Number is one of the most effective steps you can take toward robust identity protection. With identity theft on the rise, it’s crucial to proactively protect your personal information and minimize the risk of financial loss, stress, and long-term damage to your credit. By understanding the benefits and following the simple steps outlined in this guide, you can take control of your financial security and enjoy the peace of mind that comes with knowing you’re protected.

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http://www.mollyblomquist.com

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