Check Your Credit Report After Experian Credit Freeze Disruption
If you have frozen your credit at Experian after the infamous leak Equifax data in 2017, take into account: according to the report NerdWallet , a credit bureau system for verification of PIN-codes for thawing credit was a serious lack of security, making people vulnerable to scams.
According to a report by veteran writer Liz Weston, “Experian has released personal identification numbers – the PINs needed to unfreeze and freeze loans – after users answered their security questions with the general answer: none of the above.” This means that people trying to unfreeze their credit (or someone else’s) didn’t even have to guess what the answers to the user’s security questions were. In theory, a fraudster could use this workaround to unfreeze someone’s credit and open an account in their name.
“The reader has alerted us to this issue and some of us who have had a credit freeze have been able to repeat it,” Weston writes. “We asked our Facebook and Twitter followers and heard from others who also got access to their PINs.”
When contacted for comment, an Experian representative told me, “While we are confident that our authentication is secure and no credit files are at risk, we have taken additional steps to make the process more secure. We continue to monitor our systems on a regular basis, taking immediate action when necessary to enhance data security. ” He did not answer if there are further steps consumers can take to protect themselves.
As I wrote earlier this week , users who freeze their credit no longer need to use the PIN system with Equifax and TransUnion. The only thing holding Experian back is that if you froze your credit there, you should be aware of the downside. You can request a change to your PIN, which will require sending out personal identification information from Experian, another insecure system, although it is unclear how much damage this will prevent.
This is another example of the need to remain vigilant about our finances and potential fraudsters, as Weston points out. You, of course, cannot rely on credit bureaus, banks or any other institution to protect your information. This means checking your credit report periodically to find discrepancies, enabling two-factor authentication for your accounts, using a password manager to protect your information, and checking bank statements for fraud.