NEW YORK, NY / ACCESS Newswire / June 17, 2025 / Most people never expect to be victims of financial fraud, but frequent data breaches expose many Americans to the risk of credit card fraud and identity theft. Fraudsters may use your personal information to create new loan or credit card accounts in your name, borrowing money that they'll never repay. They can also steal your existing credit card information and use it to make unauthorized purchases. If left undetected, this fraudulent activity can quickly destroy your credit. Credit damage from fraud can be reversed, but the process is often time-consuming and draining. It's much safer to take precautionary measures that can help you avoid falling victim to fraud. Here are some steps you can take to protect your credit.
Use Two-Factor Authentication Where Possible
Many financial institutions and online platforms now offer two-factor authentication (2FA), which adds an extra layer of security beyond just a password. With 2FA enabled, logging in to your accounts requires a second verification step. This could be a text message code, an authentication app, or biometric verification. This can make it harder for hackers to gain access to your accounts, even if they obtain your password.
Update Your Passwords Frequently
Reusing the same password across multiple sites increases your vulnerability to cyberattacks. If one website suffers a data breach, hackers can use the leaked credentials to access other accounts. Using strong, unique passwords for each account and changing them regularly helps protect your information. If a website or service provider lets you know that you've fallen victim to a data breach, update your passwords right away. Consider using a password manager to help you generate and store complex passwords securely.
Check Your Credit Reports Regularly
You're entitled to a free credit report from each of the three major credit bureaus once a year. Checking your reports can help you identify unauthorized accounts, incorrect information, or signs of identity theft. If you spot any payments you didn't authorize or accounts you don't recall opening, report it immediately to the credit bureau and the relevant financial institution.
Use Fraud Alerts or Credit Freezes
If you've already fallen victim to identity theft or want extra protection, you can consider placing a fraud alert or a credit freeze on your credit file. A fraud alert notifies lenders to contact you and verify your identity before opening new accounts in your name. A credit freeze, on the other hand, restricts access to your credit report, preventing anyone (including yourself) from opening new accounts without lifting the freeze. A credit freeze is particularly useful for children who are often at risk of identity theft. Both options are free and can help prevent unauthorized credit activity.
Consider Using an Identity Protection Service
Identity protection services can alert you to suspicious activity, monitor the dark web for stolen data, and (in some cases) provide insurance in case of identity theft. These services are often bundled with other benefits including credit monitoring. They offer greater peace of mind to those facing a high risk of fraud, but they do come at a cost. Identity protection is a useful investment for some, but a free fraud alert makes more sense for others.
Protecting your credit requires some precautions, but over time, these habits can become second nature to you. Being proactive with your financial safety and taking the right precautions can help you avoid fraud and credit damage in the long run.
Disclaimer: This content is sponsored by myFICO and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about myFICO's services, including credit scores and monitoring tools, please visit the myFICO website or reach out to a myFICO representative.
CONTACT:
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com
SOURCE: iQuanti
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