If a company tells you that your personal data was exposed in a breach I would normally freeze your credit. This is especially true when the stolen data contains a Social Security number or other details that could help someone open an account in your name.
Why a Credit Freeze Makes Sense
The annoying part of a data breach is that you never know what will happen next. Your information can sit idle for months before someone tries to use it. Therefore waiting for a charge or a strange account to appear is not a good strategy.
A freeze takes care of that problem early. If someone has your information and attempts to open a credit card the lender will hit the freeze and stop the transaction.
What the Freeze Actually Does
Think of a freeze as putting your credit report behind a gate. You control the key.
You will usually need to contact each credit bureau separately to place a freeze. Keep the login details or PINs that the bureau gives you in a place. You will need those details when you want to lift the freeze for a credit application.
When I’d Definitely Freeze It
Not every breach carries the risk. If a company lost your email address the situation is different from a breach involving sensitive identity information.
If your Social Security number was exposed I would freeze your credit. The same applies if the breach involved personal information to make identity theft a realistic concern.
• Your Social Security number was exposed. That is the one and I would take the warning seriously.
• You do not expect to apply for credit soon which makes the freeze easier to live with.
• The breach involved identity details and the company is not giving you much confidence about what was taken.
Don’t Forget About Existing Accounts
A credit freeze mainly protects against accounts being opened using your identity. It does not magically protect a credit card you already have.
So keep an eye on existing accounts too. If you see a charge that you do not recognize, deal with it directly through the institution.
Is a Credit Freeze Worth the Hassle?
Honestly yes. If the breach exposed information that could be used for identity theft I would rather spend twenty minutes setting up a freeze than spend weeks fixing an account later.
You can lift the freeze when you actually need to apply for credit. It may feel like one password and one more annoying task in your life but, after a while you stop noticing it.