These days, massive data breaches seem to happen with depressing regularity. From cell phone companies to healthcare providers, hackers and data thieves are penetrating so-called iron-clad security barriers and routinely stealing the data of tens of millions of American citizens. It’s only a matter of time, experts warn, before some of that sensitive data is re-sold, leaving us even more vulnerable to identity theft and financial fraud.

Is there a solution – a safeguard that the average citizen can enable to offer at least some personal protection? The answer, according to this recent Kiplinger article, is a cautious yes. You can impose what’s called a credit freeze, effectively making it difficult if not impossible for a thief to access your account with the Big Three credit agencies, Equifax, Experian and TransUnion. We say “cautious” because there are still steps you need to take to protect yourself, so a credit freeze might not be a panacea. But it’s an extremely helpful step.

The article was written by Kiplinger senior editor Alexandra Svokos. Let’s check out her advice and the reasoning behind it.

High-Profile Data Breaches Have Consumers Worried

“There have been enough high-profile data breaches so far this year to make anyone nervous,” Svokos begins. “We’ve seen some of the biggest cyberattacks in history, including a data breach at Change Healthcare and a data breach at National Public Data. Alongside these breaches have been calls to keep yourself safe by freezing your credit.”

But this begs the question: is credit freezing the right course of action when you find out about a data breach? How does a credit freeze even work?  And, in cases like the Change Healthcare and National Public Data breaches, what would freezing your credit do to help?

“Let me start by getting one thing out of the way: Kiplinger recommends freezing your credit,” Svokos emphasizes. “Now, let’s walk through why we recommend it, and why this year is a reminder of the importance of this protection measure.” 

Credit Freeze Blocks Access to Critical Data

Svokos defines a credit freeze—also called a security freeze—as an action that “blocks creditors from being able to review your credit reports.” So why is this important in the wake of a data breach?

As an example, Svokos asks us to consider the Change Healthcare breach, because in that incident, hackers gained access to people’s names, birth dates, phone numbers, addresses, Social Security numbers, and banking information.

“Assume I’m a scammer: If I have that information, I can theoretically apply for a credit card in your name,” she explains. “If you don’t have a credit freeze up, the bank may go ahead and run a credit report for that credit card. Assuming your credit is good, that card could get approved.”

The rest is obvious: the scammer could then use that credit card opened in your name to purchase things for themselves and run a far-reaching fraud, all the while posing as you. This could ruin your credit and put you at the mercy of losing money and peace of mind in a scam.

Not Guaranteed Protection – but an Important Deterrent

Does a credit freeze prevent all types of identity theft? No, according to financial planner R.J. Weiss. But, he adds, “it significantly reduces your risk by making it much harder for hackers to exploit your credit. Hackers are always looking for the lowest-hanging fruit.”

These scams are the real threat of data breaches, when bad actors have access to your information to use as they see fit. “It sounds scary because it is scary,” Svokos writes.

Credit Freeze is Easy to Impose – and It’s Free

The good news is that a credit freeze is free, does not pause regular changes in your credit score, and is very easy to undo when you’re ready. Svoko notes that this is not the same thing as a “credit lock”, which is a paid option with some extra features attached.  

“With a freeze in place, you will still be able to access your own credit report. A credit freeze does not impact your credit score,” said Margaret Poe, head of consumer credit education for TransUnion, one of the three credit reporting agencies.

Can You Leave Your Credit Freeze in Place Indefinitely?

It is theoretically possible to leave a credit freeze in place indefinitely. After all, you only need to unfreeze your report when you’re applying for credit, like for a new card or a loan.

Weiss says, “With the increasing likelihood of data breaches, especially with last week’s news, it’s becoming more sensible for most people to keep their credit frozen by default.”

Lisa Gerstner, the editor of Kiplinger Personal Finance, agrees, and calls freezes “one of the strongest tools available to consumers to prevent identity theft.” She has also written about how to freeze your credit. 

“My own reports have been frozen for years, and anytime I’ve applied for credit, it’s been simple to temporarily lift the freeze for a period that I specify. After the period ends, the freeze automatically goes back into place,” Gerstner says. 

After Initial Set-Up, Consumers Enjoy Peace of Mind

Svokos writes, “Considering that it’s free to freeze your credit and easy to unfreeze it when you need creditors to access your report, this is a simple way to protect your finances.”

To freeze your credit, you’ll need to go through Equifax, Experian and TransUnion.

Gerstner adds, “It takes a little time to set up a freeze initially with each credit-reporting company, but once it’s done, it’s well worth the peace of mind that a criminal is unlikely to open credit accounts in your name.”

The article ends with sage advice: “Stay safe out there!”

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(originally reported at www.kiplinger.com)