Seen At 11: Keeping Your Credit Card Information On Lock With A 'Security Freeze'

NEW YORK (CBSNewYork) - News of data breaches are becoming a regular occurrence, but there is a way to protect your credit from thieves.

As CBS2's Maurice DuBois reported, the "security freeze" is the number one tool to prevent crooks from stealing your credit card information. But the problem is that not many people use it.

A "security freeze," sometimes referred to as a "credit freeze," can be placed fast and easily online.

Until recently, it was only available to victims of identity theft. But now, financial experts say you can freeze your credit before any damage is done.

"It rejects any new applications for credit using your information," Neal O'Farrell of the ID Theft Network said.

Here's how it works: log on to each of the three credit bureaus -- Equifax, TransUnion and Experian -- where you'll be asked to confirm your identity. Once your confirmation is complete, you'll have to pay a fee of up to $10 for a new pin.  This pin will help you restrict access your credit report information.

If a thief wants to exploit your credit and/or credit history, for example, he or she wouldn't be able to without that new pin.

"If you don't apply for a lot of credit, that's a pretty good deal," O'Farrell said.

O'Farrell says while it's not foolproof, it's the best way to help protect your credit right now.

You can still use your existing credit cards, but if you want to open a new account or apply for a loan, you first need to lift the freeze temporarily.

The credit bureaus say it's not difficult to "thaw" your credit, but it will cost you another ten bucks.

"You can make temporary thaws for those times when you know that your credit will need to be checked," an Experian spokeswoman said.

Each state has different laws regarding freezing and thawing; a handful, like New Jersey, allow consumers to freeze their children's credit which O'Farrell recommends.

"We've seen that children as young as 3 years old have had their identities stolen," he said.

If you think one of your accounts has been compromised but don't want to fully lock down access to your credit reports, you can also place a free, 90-day fraud alert with the three credit bureaus. The alert requires all businesses to verify your identity before opening new accounts.

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