Personal info accessed; security freeze recommended.

[Greg the dogsitter]

Someone accessed some kinda database at UCLA, and now I've gotten an email recommending:

"As a precaution, I recommend that you place a fraud alert on your consumer credit file. By doing so, you let creditors know to watch for unusual or suspicious activity, such as someone attempting to open a new credit card account in your name. You may also wish to consider placing a security freeze on your accounts by writing to the credit bureaus. A security freeze means that your credit history cannot be seen by potential creditors, insurance companies or employers doing background checks unless you give consent."

Yeah? That's the thing to do? Are there any negative consequences to doing so?

Thanks much.

GtDS

[DharmaDog]

The only consequence that I can think of is that if you apply for a loan, a job, insurance, or even a credit card you may be denied or the application process may be delayed because you will need to authorize each person/company that tries to pull your credit. But the process does not affect your credit scores.

[Chupa Chupa]

Some thieves broke into my CPA's offices last year and stole a computer with one of the tax databases...password protected, but not encrypted. I set up new brokerage acct #s, but left everything else as-is and just monitored things more closely. Putting a security freeze on your credit record is a real PITA. I wouldn't advise it unless you know for sure your info is being used for identity theft, in which case you eligible for a new SS#.

You get one free credit check per year. Give your records a check in a month or so for suspicious activity...new CCs you don't have, odd credit inquiries, etc.

[olnacl]

Problem is, the alert may not be effective. My identity was stolen over a year ago and despite assurances by the reporting companies (all 3 were notified and responded in writing) accounts have been opened and puchases made by the theives. The warning is only good for 3 months and I have personally opened at least one new account without the information being "flagged" within the 3 month period. It's possible that a freeze would help, but that requires that a police report of the identity theft has been filed (done, in my case) and a written request made for the freeze with the credit agencies. I believe that a fradulent charge needs to be on record to file a police report. Having the account frozen will make future credit applications problematic, at best (except for the thieves - they seem to manage quite well in my case)
Good luck! I hope your identity is safe!