🚨 Scams & Fraud · Lesson 6 of 7 · 8 min
Lock Down Your Identity
🔒 Someone can open a credit card, drain your bank account, or file a tax return — all as YOU — without ever touching your wallet. All it takes is a few details that have probably already leaked in some data breach. Here's how to lock that door.
💡 Key idea
Identity theft = someone using your info to open accounts/charges. Defenses: unique passwords + 2FA, locked-down privacy, and a free credit freeze at all 3 bureaus.
🧠 Why it matters
IDENTITY THEFT is when someone uses your personal info (Social Security number, card numbers, logins) to open accounts, make charges, or file fake tax returns in your name. They get your info from data breaches, phishing, and oversharing online. Prevention basics: use STRONG, UNIQUE passwords (a password manager makes this painless) and turn on TWO-FACTOR AUTHENTICATION everywhere; lock down social-media privacy (scammers mine it); and consider a CREDIT FREEZE with all three bureaus — Equifax, Experian, and TransUnion — which blocks new credit from being opened in your name and is free to place and lift. Monitor your accounts and check your credit report. The less personal info you leak, the smaller a target you are.
🌍 In the real world
💡 A credit freeze is one of the most powerful free tools most people never use — it stops thieves from opening new accounts in your name, and you can unfreeze it in minutes when you actually need credit. Two minutes now beats months of cleanup later.
📌 Takeaways
- Identity theft uses your personal info to open accounts in your name
- Use unique passwords plus two-factor authentication everywhere
- Freeze your credit (free) at Equifax, Experian & TransUnion
📖 Terms in this lesson
Identity theft: Someone using your personal details to open accounts or borrow money in your name.
Two-factor authentication (2FA): A second check at login, like a code on your phone, so a stolen password alone isn't enough.
Credit freeze: Locking your credit report so nobody can open new accounts in your name; free, and easy to lift.
✅ Test yourself
What does a credit freeze do?
- Lowers your score
- Blocks new credit accounts from being opened in your name
- Closes your cards
- Costs a monthly fee
Answer: B · Blocks new credit accounts from being opened in your name
A freeze stops new accounts being opened in your name; it's free to place and lift at all three bureaus.
A strong defense against account takeover is...
- Reusing one easy password
- Two-factor authentication plus unique passwords
- Sharing your codes
- Posting your info publicly
Answer: B · Two-factor authentication plus unique passwords
Unique passwords and 2FA make it far harder for thieves to access your accounts.
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