Security Freeze Can Protect Oklahomans' Financial Security
By: Source: AARP.org Date Posted: 2007-04-05 11:49:07.181816-04:00
A new state law is taking aim at identity thieves by giving Oklahoma consumers the right to place a freeze on their credit reports. The Oklahoma Consumer Report Security Freeze Act, passed during the 2006 legislative session, allows Oklahomans to place a freeze on their credit files upon written request to the three credit reporting agencies—TransUnion, Equifax and Experian.
The cost for placing or lifting a freeze is $10, but the fee is waived for Oklahomans 65 and older and identity theft victims who have a police report on file. The new law took effect January 1.
“Thanks to the new security freeze law, the party is over for imposters who use the credit files of unsuspecting consumers to open bogus accounts,” said Bob Bristow, AARP Oklahoma State President. “The security freeze represents a proactive solution to a growing problem.
AARP estimates the annual cost of identity theft is about $50 billion for businesses and $5 billion for individuals. According to the Federal Trade Commission, Oklahoma reported more than 2,400 cases of identity theft in 2005, ranking 18th out of the 50 states. Oklahoma City had the most complaints (484) followed by Tulsa (366); Edmond (97); Norman (81); and Broken Arrow (66).
Through a security freeze, a consumer can prevent anyone from looking at his or her credit files for the purpose of authorizing new accounts unless the consumer decides to lift the freeze for a specific party or period of time. If the consumer’s credit files are frozen and an impostor applies for credit in their name, the application cannot be processed. Oklahoma is one of 25 states to pass security freeze legislation.
“One by one, states are enacting security freeze legislation to provide an important new identity theft protection tool for consumers” said State Senator Randy Bass (D) of Lawton, who authored the Oklahoma law in the Senate. “I encourage all Oklahomans to be well informed about the contents of their credit files and weigh the options to see if a security freeze is right for them.”
An AARP survey conducted last year indicated strong support among Oklahomans for a security freeze. "Security Freeze Legislation and Consumer Attitudes on Paying Activation and Lifting Fees: An AARP Survey of Oklahoma Adults 18+" found that a majority of Oklahoma respondents strongly (52 percent) or somewhat (27 percent) supported security freeze legislation and would sign up to place a freeze on their credit files if that service were available to them.
“I’ve seen new account fraud firsthand and it can create real hardships for consumers," said the House author of the legislation, State Representative Terry Ingmire (R) of Stillwater. “Enacting a security freeze is a good first step to preventing new account fraud.”
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