How to Protect Your Credit From Fraud and Scams 

Credit fraud happens more often than you might expect. Sometimes it’s a charge you don’t recognize. Other times, a new account opened in your name that you never applied for. Whatever way it happens, catching it early and knowing what to do makes a big difference. 

Check your credit report regularly 

Your credit report is your first line of defense. Reviewing it regularly is the most reliable way to catch fraud early. 

You can pull free credit reports from each of the three credit bureaus at annualcreditreport.com. (In the past, you could only get one free credit report from each bureau per year. Now you can pull credit reports as often as every week.) Look for any accounts, inquiries or addresses you don’t recognize. 

If your financial institution offers free credit monitoring, turn it on. It won’t prevent fraud, but it will alert you quickly when something changes on your report. 

Know what you’re watching for 

It’s helpful to understand what fraud looks like so you can identify it before it’s too late. Credit fraud generally falls into two categories.  

• Account takeover: when someone gains access to an existing account and uses it fraudulently. This can happen through data breaches, phishing scams or stolen card information. 

• New account fraud: when someone uses your personal information to open new credit accounts in your name. This is a form of identity theft and often goes undetected longer because it doesn’t involve an account you’re actively monitoring. 

Regardless of the type of fraud, here are some red flags to watch out for: 

• Unfamiliar accounts or inquiries on your credit report 

• Bills or collection notices for accounts you didn’t open 

• Charges you don’t recognize on existing accounts 

• Unexpected drops in your credit score. 

If see any of these warning signs, you may need to freeze your credit. 

Freeze your credit 

A credit freeze is one of the most effective things you can do to prevent new account fraud. It restricts access to your credit report so that lenders can’t pull it, which means anyone trying to open a new account in your name will be denied. 

A credit freeze is: 

• Free to place and lift at any time 

• Available through each of the three bureaus separately (Equifax, Experian and TransUnion) 

• Reversible when you need to apply for credit—you can lift it temporarily and restore it after 

If you’re not actively applying for credit, a freeze costs you nothing and significantly reduces your exposure. It’s a somewhat underused and underappreciated protection tool. We recommend you take advantage of it! 

Watch out for phishing and impersonation scams 

Credit fraud often starts with a scam—someone impersonating a bank, credit bureau or government agency to get your personal information. 

A few things to keep in mind: 

• Your credit report comes from annualcreditreport.com. Not from a link in a text message, an email from an unfamiliar sender or a phone call offering to pull it for you. 

• Real financial institutions won’t ask for your full Social Security number, PIN or password over the phone or via text. 

• If you get an unexpected call claiming to be from Horizon, hang up and call us directly using the number on our website or the back of your card. 

• Be skeptical of urgent messages claiming there’s a problem with your account that requires immediate action. Scammers use urgency to get people to act before thinking. 

What to do if you think you’ve been a victim 

Place a fraud alert 

A fraud alert notifies lenders to take extra steps to verify your identity before opening new accounts in your name. Placing one with any of the three bureaus automatically notifies the other two. An initial fraud alert lasts one year; if you’ve confirmed identity theft, you can place an extended alert that lasts seven years. 

Report the identity theft 

The Federal Trade Commission (FTC) is the primary federal agency for identity theft reports. You can file at identitytheft.gov, which will walk you through a personalized recovery plan. This report can also be used as documentation when disputing fraudulent accounts with the bureaus. 

Dispute fraudulent accounts 

If a fraudulent account appears on your credit report, dispute it directly with the bureau. Include your FTC report and any supporting documentation. The bureau is required to investigate and respond within 30 days. The CFPB offers detailed guidance on this process at consumerfinance.gov. 

Contact your financial institution 

Your bank or credit union can help secure your accounts and prevent further fraud. They will also want to know to help protect other members and customers.  

Secure your personal information 

Preventing fraud starts with how you handle your personal information day to day: 

• Use unique, strong passwords for financial accounts and enable two-factor authentication wherever it’s available 

• Be cautious about what you share on social media. Answers to common security questions like your mother’s maiden name, your first pet or your high school could be used to impersonate you 

• Shred documents containing personal or financial information before discarding them 

• Review your account statements regularly, not just when something seems off 

Horizon is here to help 

If you suspect fraud on a Horizon account, contact us right away. We take security seriously and have team members available to help you protect your accounts and navigate next steps.