A new federal law that went into effect Friday extends measures meant to protect U.S. citizens from fraud and personal data breaches.
In May, Congress passed the Economic Growth, Regulatory Relief and Consumer Protection Act, calling for Equifax, Experian and TransUnion to add web pages where consumers can request credit freezes and thaws for free.
Congress passed the Economic Growth, Regulatory Relief and Consumer Protection Act, calling for Equifax, Experian and TransUnion to add web pages where consumers can request credit freezes and thaws for free.
A credit freeze blocks lenders from checking a person’s credit report, denying access to an account, even if personal information was somehow obtained.
Thawing involves unfreezing a credit report to allow access that had been blocked. However, thawing was considered a time-consuming and cumbersome process. With the new act in place, thawing of a credit report must take place within an hour’s time.
The law was created in the wake of major data breaches in the past decade, including the 2017 Equifax scandal where nearly 148 million U.S. citizens’ personal information was compromised.
“People for years have been able to freeze and thaw their credit reports, but this is about making that process easier and more efficient,” said Erin Dufner, chief marketing officer for the Better Business Bureau in Austin. “Freezing your credit will now be free. Some of these companies previously charged for that service.”
According to a 2018 survey conducted by TransUnion, 76 percent of consumers know at least one individual affected by a data breach. Seventy-five percent of consumers have become more concerned about data breaches following the 2017 Equifax event.
Additionally, only 15 percent of consumers feel they have the tools to protect their personal data, according to the same survey. In turn, the law was enacted by Congress to help alleviate some of these concerns.
Dufner said now that the law is in place, she recommends consumers freeze their credit report, just to add a sense of security and protection against identity theft. Additionally, Dufner recommends parents freeze their children’s credit report.
In Texas, credit card fraud is a state felony and can result in up to two years of jail time and a $10,000 fine.
Practices known as “phishing,” or the act of stealing credit card information online, have become more common as people store payment details on websites and personal computers.
“We have seen big data breaches reported from big companies for years,” Dufner said. “It’s good to see that the government is acknowledging that and taking measure to protect people’s data.”
