Fraud Alert or Freeze Reports

[Anonymous]

Last month I logged into one of my credit union accounts to check my credit card balance. I noticed there were two different account numbers showing with a note I would be receiving a new card bearing the new account number. I called them and was informed that it was a precautionary measure. I asked a million questions including whether or not a specific incident had occurred to cause them to take this step, whether this was something they were doing with all of their customers, did I have any reason to be concerned. I was basically just told it was a precautionary thing and that I would receive a letter. So today in the mail I receive a letter informing me that the CU experienced a security breach and that some of my personal information, which may have included my name, address, SSN and credit card #, had been improperly accessed. On top of issuing a new credit card they are offering two years of enrollment into their credit monitoring program. I'm more than a little miffed that they knew there was a problem nearly a month ago but were evasive on the phone and are just now getting an explanation letter to me. I just opened my account and got a CC with them a few months ago and they aren't giving me the warm fuzzies.

Anyway - the letter also says that if I find it necessary I can place a fraud alert with EQ/EX/TU. I'm also considering freezing my reports. Does anyone have any thoughts about if one or the other is better, or if both are necessary, or what the drawbacks might be for either? I'm not planning to seek new credit anytime soon.

[RobertEG]

This is a very subjective area.  I am sure you will get many opinions.  I can offer how I would address it, both from fraud and credit reporting perspectives.

You have evidence that information in your credit report is inaccurate.  Armed with that information, I would immediately file a direct dispute with the CU that posted that information, and require THEM to immediately delete all of this information from your credit file.  Put the burden of correction directly on them.

Pursuing a fraud alert or block on the information in your CR might be something I would consider, if I was concerned with the possibility of a recurrence of security leaks on the new card.  The old account is closed, and thus further use of it is precluded.  The remaining damage of the closed account is that it may still be included in your credit scoring, until it is finally deleted.  The CU should already have done this!!!!!  I would be hesitant to put a fraud alert or blockage on the new account.

If the CU has not yet deleted the old account, I would immediately send them a direct dispute under FCRA 623(a)(8), thus compelling the deletion of the admittedly inaccurate reporting.

[Anonymous]

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@Anonymous wrote:

Last month I logged into one of my credit union accounts to check my credit card balance. I noticed there were two different account numbers showing with a note I would be receiving a new card bearing the new account number. I called them and was informed that it was a precautionary measure. I asked a million questions including whether or not a specific incident had occurred to cause them to take this step, whether this was something they were doing with all of their customers, did I have any reason to be concerned. I was basically just told it was a precautionary thing and that I would receive a letter. So today in the mail I receive a letter informing me that the CU experienced a security breach and that some of my personal information, which may have included my name, address, SSN and credit card #, had been improperly accessed. On top of issuing a new credit card they are offering two years of enrollment into their credit monitoring program. I'm more than a little miffed that they knew there was a problem nearly a month ago but were evasive on the phone and are just now getting an explanation letter to me. I just opened my account and got a CC with them a few months ago and they aren't giving me the warm fuzzies.

Anyway - the letter also says that if I find it necessary I can place a fraud alert with EQ/EX/TU. I'm also considering freezing my reports. Does anyone have any thoughts about if one or the other is better, or if both are necessary, or what the drawbacks might be for either? I'm not planning to seek new credit anytime soon.

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It seems like you're talking about PenFed.

To be fair, it is probably quite a challenge  for a relatively small financial institution to not only properly identify and remedy and breaches (or apparent breaches) of security and then how to handle this with their customers. 

In any event, IMO a freeze is quite effective with the only major hassle I have found being the inconvenience and the fee to unfreeze when you so desire.  I have had active duty alerts (a type of fraud alert) before and not only were they a major pain in the rear, but I didn't find them as effective as a security freeze.

Whether or not you choose to implement a freeze or a fraud alert would be up to you.  If there were a chance someone got my SSN and DOB, I would probably give it serious thought.

[Anonymous]

Thank you both for the feedback. I went ahead and placed a freeze with all three CBs.

[Cory]

Hello,

I was able to freeze my Experian report, but Equifax and Transunion are giving me the creeps!

Is there a way to freeze all three or just two with one shot?

I got this letter from Penfed too, and I'm not taking anymore chances. Maybe the sites busy from all Penfed's mbr's freezing their credit reports.

Cory

[Anonymous]

I was able to freeze online with Experian and Transunion. I had to call Equifax. I don't have the number anymore; found it through a Google search.

[Anonymous]

If you subscribe to EQ or TU's credit monitoring service, you can freeze / unfreeze online easily for free.

Yes, it's another $20 per month or so, but if you need to unfreeze your reports periodically it is almost worth it.