Going to War by Freezing Your Credit

Your identity is priceless—to you—and to hundreds of thousands of hackers around the globe. They find ways to capture your information, hijack your money and credit and plunder them like conquering soldiers carrying off the spoils of war.

The number of victims in this cyber war is growing at an alarming rate. The  latest figures indicate that identity theft in the U.S. occurs every 4.9 seconds. In 2024 it cost Americans more than $47 billion. And that’s only what was reported. The Federal Trade Commission (FTC) says there may be that much more that’s not reported because of ignorance or embarrassment.

In the first half of 2025, the Federal Trade Commission (FTC) received 748,555 reports of identity theft. That’s up more than 196,000 from the first half of 2024. When the final numbers are tallied, it’s expected there will be more reported cases of identity theft in 2025 than ever before.

Data source: Federal Trade Commission (2025).

But in the words of an old rock-n-roll song, ”You ain’t seen nothin’ yet.” The “Good Guys” have been using artificial intelligence to enhance cybersecurity. Now, AI is being used by the dark side in nefarious and devastating ways to launch sophisticated cyberattacks on you, your finances and your future.

Research by Qi Liao, professor of computer science at Central Michigan University, found hackers using AI to:

• Generate spam emails that bypass spam filters by making the filters classify harmful messages as legitimate.
• Automate social engineering attacks by analyzing social media data, and generating deepfakes, including realistic audio, video and images. For example:
• AI-generated deepfake videos can impersonate you instructing your bank to transfer funds.
• AI can clone your voice and perpetrate scams such as the grandparents scam, when a voice claims to be a grandchild in trouble and asks for money; the advanced fee scam, when you’re told you’ve won a major sweepstakes and that if you pay a small fee the prize money will be sent to you; or the imposter scam when a voice on the phone tells you they represent the government and you must pay your back taxes immediately or be arrested.
• AI-driven attacks can compromise bank security questions by analyzing publicly available personal data, enabling identity theft and opening fraudulent accounts in your name.
• AI can automate ransomware attacks that steal financial information, such as credit cards, bank details and high-value cryptocurrency wallets.
• Even beyond the dangers of identity theft, AI is being used in much more diabolical ways, being trained to encourage suicide and homicide. There is currently a bill before the Tennessee state legislature that would outlaw that kind of AI programming.

While this all sounds ominous, there is at least one major weapon you can use to protect your finances and credit profile. Go on the offense with a credit freeze.

Freezing your credit with all three major credit bureaus is one of the strongest and most effective ways to protect your personal financial information.  By placing a freeze on your credit reports, you can prevent unauthorized access by lenders and scammers who might try to open accounts in your name.

What Is a Credit Freeze

A credit freeze restricts access to your credit report. When you freeze your file, the reporting bureaus (Equifax, Experian, TransUnion) will not provide information to lenders unless you unfreeze your information. That makes it harder for identity thieves to open fraudulent accounts because lenders want to see if you are credit-worthy.

Equifax

Freezing your credit at Equifax can be done online or by phone. You’ll need to provide personal details such as full name, address, date of birth, Social Security number, and other identifying information. After verification is complete, you’ll receive a PIN or password which allows you to manage or lift the freeze in the future.

Experian

Experian offers an online process for freezing your credit, too. Similar required information includes personal identification details and contact information. Once you’ve passed verification checks, you’ll be issued credentials necessary for unfreezing if needed later on.

TransUnion

TransUnion’s process mirrors that of Equifax and Experian; fill out an online form or call their customer service line and provide accurate personal data for identity verification. Once approved, you’ll receive unique login credentials allowing you to control when a freeze is lifted and put back in place. Here are the official credit agency websites.

TransUnion: transunion.com/credit-freeze

Experian: experian.com/freeze/center.html

Equifax: https://www.equifax.com/personal/credit-report-services/credit-freeze/

You don’t have to be a paid subscriber to the three credit bureaus in order to request a freeze. By federal law, credit reporting agencies must provide free freezes and unfreezes. And for couples, each person will have to request their own freeze because credit is based on individual social security numbers.

It’s a good idea to check your credit report regularly. You are entitled to one free report every year from each of the three reporting agencies. The only site authorized by federal law to provide those reports is AnnualCreditReport.com. And even if you have a credit freeze in place it does not prevent you from getting your free credit reports.

Disclaimer:

This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors; all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investments at 1-888-777-0970 or email us at info@alhambrapartners.com.