The Federal Trade Commission (FTC) recently shared that it received over 1 million reports of identity theft in 2025 alone. The agency estimates that these reports resulted in over $15 billion in losses. These incidents often involved fraudsters reaching out through text or email to gather personal information and then open fake or hijack current credit card accounts.
This new information is concerning, but there are ways to reduce the risk of becoming a victim. One powerful tool at your disposal is a credit freeze.
What is a credit freeze?
A credit freeze, also known as a security freeze, essentially shuts down access to your credit report. When your credit is frozen, potential creditors cannot view your credit history, which prevents identity thieves from opening new accounts in your name. The freeze remains in place until you choose to lift it, either temporarily or permanently.
When does freezing credit make sense?
You can implement a freeze at any time, but it is particularly beneficial in the following situations:
- You have been notified that your personal information was compromised in a data breach
- You are not planning to apply for new credit, loans or services that require a credit check in the near future
- You have already experienced identity theft or fraudulent account activity
- You want proactive protection against potential fraud
The process is free at all three primary credit bureaus — Equifax, Experian and TransUnion — and provides protection against unauthorized credit applications.
How do I access credit if I need it?
If you have frozen your credit and need to apply for a loan, credit card or rental application, you can temporarily lift or permanently remove the freeze. You will need to contact each credit bureau separately and use the information you created when establishing the freeze, like a password or pin. Most bureaus can lift a freeze relatively quickly for immediate access, though you should plan ahead when possible.
What if I am the victim of fraud?
Taking control of your credit security is an important step towards protecting your identity when addressing fraud. This is essential in today’s digital landscape, and understanding both preventive measures and legal recourse empowers you to protect your financial future.