6. Security Freeze

Identity theft is one of the fastest growing financial crimes. Nearly 10 million Americans fall victim each year. The Identity Theft Resource Center reported in 2005, on average, an ID theft victim of new account and other fraud spent 60 hours resolving problems brought on by ID theft, those victims of existing accounts spent an average of 15 hours resolving problems. A 2003 Federal Trade Commission study found that identity theft also costs U.S. businesses nearly $48 billion annually, and consumers an additional $5 billion per year.

A security freeze lets consumers stop thieves from getting credit in their names. A security freeze locks, or freezes, access to the consumer credit report and credit score. Without this information, a business will not issue new credit to a thief. When the consumer wants to get new credit, he or she uses a PIN to unlock access to the credit file. These states give consumers this important weapon to prevent identity theft:

For more information on security freezes, see the Consumers Union/U.S. PIRG Model State Clean Credit and Identity Theft Protection Act.

Nebraska

Eligibility: All consumers.
Fees: No fees for identity theft victims and minors. All others pay a one time $15 fee to place the freeze. No fee for lifting the freeze temporarily or removing it altogether.
Effective: September 1, 2007
Note: Security freeze automatically expires after 7 years from date of placement.
Copy of Nebraska’s security freeze law Instructions for using Nebraska’s security freeze law

Wyoming

Eligibility: All consumers
Fees: No fees for identity theft victims. All others pay $10 to place the freeze, lift it temporarily, or remove it altogether.
Note: Requires electronic and telephone methods to lift, imposes the 15 minute lift timeframe starting September 1, 2008.
Effective date of law: July 1, 2007
Permanent freeze remains until removal requested by consumer.
Copy of Wyoming’s security freeze law Instructions for using Wyoming’s security freeze law