A security freeze or credit freeze is a step allowed under most state laws that blocks access to your credit report by most third parties or creditors. Certain organizations and individuals may still be allowed access to a frozen credit report depending on the laws in your state, such as potential landlords or employers. Check with your State Attorney General's office for a list of security freeze exceptions in your state.

If you are a victim of identity theft, you have the right under state law to place a security freeze on your credit via all three credit reporting agencies. That way, no one will be able to apply for credit in your name. In order to process a new credit application, you must request that the freeze be temporarily lifted. The freeze will remain in place until you request its removal. There may be a fee associated with placing a security freeze.

Identity theft is a serious event, but it does not have to ruin your finances or your good name. Taking the right steps to protect your personal information can keep it from ever happening to you. If you do become a victim, immediate action can put a stop to financial loss or damage to your credit, and put you on the road to restoring your good name and reputation. The best defense against identity theft is information combined with common sense.