PERSPECTIVES FROM THE CAMPUS
One of the strengths of Indiana is that we bring together a variety of perspectives from the plethora of areas that touch the field of cyber, especially through the colleges, universities, and other institutions of higher education throughout our state. Hence the name, “Perspectives from the Campus”, we invite experts – immersed in the pursuit of educating their students – to offer their knowledge for finding solutions in cybersecurity that benefit all Hoosiers.
In the latest installment of this series, David Dungan, who serves as the executive director at the Center for Security Services and Cyber Defense at Anderson University, discusses the importance of understanding – and protecting -- your credit score. He also offers some helpful tips and what to look for if you’re contacted by someone representing a credit bureau and what to do if they offer to “fix” or repair your credit.
By David Dungan
It’s fair to say that when it comes to a number that can have impact on our everyday life, there are, arguably, few things that could be considered more impactful than the three digits that represent our credit score.
And given the fact that a credit score represents the likelihood that you’ll repay the cash you borrow, understanding the importance of those scores (from the 3 different credit bureaus) is vital, as it can affect your ability to get a loan, rent an apartment, or purchase a home. In some cases, it can be even used to qualify for employment or to determine your eligibility to purchase an insurance policy.
Originally, It was created to represent your credit risk which is composed into a credit score. Scoring ranges can vary but often follow from high being the best.
For instance, Equifax scores:
- 850-800: Excellent
- 799-740: Very Good
- 739-670: Good
- 669-580: Fair
- 579-300: Poor
By becoming aware of your overall credit, you can make more informed decisions, manage your finances better, and decrease the possibility of going into debt. It’s important to know, too, the factors that can impact your credit score, including:
- Payment history: Any open credit accounts under your name and is the most significant factor in determining your score.
- Types: Different types of credit accounts often show that you are able to manage multiple credit types
- Length: Age of credit history.
- Recent request: A hard inquiry is triggered on your credit report when applying for new line of credit and multiple attempts within a short time period can hurt your score.
- Credit used vs. total available credit: Commonly called credit utilization rate or debt-to-credit ratio, it is shown as a percentage and is your used revolving credit, which are credit cards, divided by the total revolving credit you are allowed.
Of course, as with any data that involves our personal and financial information, it has to be handled in a way that’s secure. At the same time, it is why cybercriminals are running all sorts of email scams with the fraudsters posing as credit bureaus, banks, or scoring services like FICO to steal your personal information, login credentials, and/or your money.
There are three common tactics that are being used to run the scams, including:
- Fake Alerts: Emails claiming your credit score has increased, dropped, or that an account has been suspended.
- Urgent Action: Pressuring you to click a link, call a phone number, or download remote-access apps (like WhatsApp) to "fix" a virus or security breach.
- Impersonation: Using look-alike sender addresses, stolen logos, or fake domains mimicking Experian, Equifax, TransUnion, or PayPal.
To protect yourself, be sure to follow these tips:
- Do not click links or call numbers provided in unsolicited emails.
- Go direct: Log in to your accounts by typing the official website directly into your browser or using the official mobile app.
- Know your rights: Real credit reports are completely free through AnnualCreditReport.com.
- Spot the signs: Legitimate bureaus will never threaten you, demand immediate payment, or ask you to download third-party communication apps.
Just as the scammers will try to mislead you when it comes to your credit score, they will pretend as though they are a representative from one of the legitimate credit bureaus such as Equifax, Experian, or TransUnion to steal your money or personal information with tactics such as:
- Charging upfront fees: Scammers demand payment before fixing your credit or placing a freeze. Real credit freezes and fraud alerts are 100% free.
- Sending fake alerts: You receive a call, text, or email claiming suspicious activity on your account, asking for your Social Security number or password to "fix" it.
- Guaranteeing results: Companies promise to erase bad credit history or bankruptcy immediately. No one can legally remove accurate, negative information from a real credit report.
To protect yourself, it’s a good idea to:
- Contact Bureaus Directly: Manage your credit reports safely through official sites like Annual Credit Report.com for free weekly reports.
- Never Pay for Free Services: Placing a credit freeze or a fraud alert costs nothing through the official bureau sites or the Federal Trade Commission.
- Report Imposters: If you spot a scam, report it immediately to the Consumer Financial Protection Bureau or the Identity Theft Resource Center.
Here in Indiana, if you believe you are a victim of identity theft or fraud, or you need to know who to contact to file a report, be sure to visit the Report a Cyber Incident page on the Indiana Cyber Hub website.
While it’s true that there are steps you can take to help improve your credit score, you can stay ahead of the process by routinely monitoring your credit. In doing so, you’ll be in a better position to protect your personal and financial information by using best practices such as multi-factor authentication (MFA) to make those three digits are properly secured.