Compare Tools for Preventing New Fraudulent Accounts

One of the biggest problems of identity theft is scammers opening new accounts under your name or with your personal details. These can wreak havoc with your credit, finances, employment, and personal life. Let’s compare tools for preventing new fraudulent accounts and what to do if your identity is stolen. If you need help with your identity theft case contact our Florida identity theft lawyer today. 

What Is Florida Fraudulent Account Opening?

Fraudulent account opening, or New Account Fraud (NAF), happens when scammers create credit card, online, or other accounts with stolen information. They may use your details or create a synthetic account. The Federal Trade Commission (FTC) recorded over $12.5 billion in losses to fraud in 2024 for 2.6 million Americans, a 25% jump from 2023. 

Key Factors to Consider When Choosing a Tool 

You can use a variety of tools from vendors that monitor and prevent NAF. Factors you should consider include the cost, ease of use, real-time monitoring, and reputation. Common tools include:

Credit Freezes

The three credit reporting agencies, Experian, TransUnion, and Equifax, let you initiate a credit freeze, denying any new credit requests. You have a legal right to request a credit freeze under the Economic Growth, Regulatory Relief, and Consumer Protection Act.

Credit Locks

A credit lock is typically a paid service offered by credit reporting agencies as part of their credit monitoring package. Locks aren’t federally mandated and you often can’t have both a credit lock and a credit freeze at the same time. 

Fraud Alerts

If you’ve been a victim of identity theft, you can request a fraud alert on your accounts. This notifies potential creditors that they should use additional verification methods before extending credit. Fraud alerts are free and generally last 1 year, although you can renew them as needed. 

Credit Monitoring Services

A credit monitoring service is a paid plan that allows a company to monitor your credit reports and take action to prevent fraud. There are many to choose from, including those offered by the credit reporting agencies. 

Identity Theft Protection Plans

Identity theft protection plans, such as the one offered by Experian, are paid services that offer the perks of a credit monitoring plan, plus insurance coverage for losses you experience from identity theft.

Synthetic Identity Detection Tools

According to FICO, synthetic identities are made up of real and fake information. Providers such as ID.me, used by the federal government to protect Social Security accounts, use updated verification methods to weed out synthetic identities.

Comparing the Tools: Pros and Cons

Choosing the right tool depends on your lifestyle and risk factors. Some may offer pros such as:

• Peace of mind with little required of you
• Full coverage for all your accounts
• Up-to-date security technology
• Real-time monitoring
• Insurance coverage for losses

Cons may include high monthly prices, poor customer service, or insufficient technology. The tool may not work for transactions outside the US or it could have false positives, locking down your credit when you need it most. 

Using Multiple Tools Together for Stronger Protection

At a minimum, you should consider credit freezes from the reporting agencies. We also recommend reviewing available tools and choosing a combination that works best for your needs for a stronger defense against scammers. 

Florida-Specific Consumer Protections

The Florida Department of Agriculture and Consumer Services oversees scams and frauds in the Sunshine State. They enforce the Florida Consumer Protection Act, which regulates telemarketing and other scams, as well as unfair or deceptive practices. 

What To Do If a Florida Fraudulent Account Slips Through

If you discover someone opened a fraudulent account in your name or with your credit, the Federal Trade Commission (FTC) recommends these steps:

• Contact your banks and credit card companies to report the account.
• Report the account to the credit reporting agencies.
• Go to IdentityTheft.gov to determine whether your identity was stolen.
• Change the passwords on all your online accounts, including social media.
• Report the fraud to the FTC.

To help you find the scammers and take legal action, schedule a free consultation with Sharmin & Sharmin, Attorneys at Law,  to speak with a Florida identity theft attorney.