Social Security Freeze

What Does Social Security Freeze Mean?

A Social Security freeze refers to the action of preventing the release of a credit report to any person or company upon the request of the owner of a Social Security number. This measure is designed to prevent fraudulent transactions and protect against identity theft.

Insuranceopedia Explains Social Security Freeze

When a person’s Social Security identity is used for financial transactions without their knowledge, they can initiate a security freeze. Once the freeze is in place (typically for a fee), banks and creditors can no longer access the person’s credit report or credit score. It also prevents anyone from opening accounts in the person’s name.

However, the freeze can be lifted using a PIN number if the person who initiated it wants to apply for a loan or permit a specific creditor to view their credit file.

A credit bureau generally enacts the freeze within three days of receiving the request.