South Carolina Security Freeze & Fraud Alerts: What They Are and When to Use Each
Dave Maxfield

If you live in Columbia or anywhere in South Carolina and you’re worried about identity theft, you’ve probably heard two terms over and over: security freeze and fraud alert. Both tools can reduce your risk, but they work differently.

This guide explains what each one does, when to use it, and how South Carolina law fits in—so you can protect yourself and your family and know when it’s time to get help from an experienced consumer protection attorney like Dave Maxfield Attorney LLC in Columbia, South Carolina.

What a Security Freeze Does in South Carolina

A security freeze (also called a credit freeze) blocks new creditors from pulling your credit report unless you lift the freeze. Because most lenders won’t open an account without checking your report, a freeze is one of the strongest ways to stop new-account identity theft.

South Carolina’s Financial Identity Fraud and Identity Theft Protection Act, found in Title 37, Chapter 20 of the South Carolina Code, gives you the right to place, temporarily lift, and remove a freeze with consumer reporting agencies.

  • The main freeze provisions appear in S.C. Code Ann. § 37-20-160.

  • For minors and other “protected consumers,” South Carolina provides an additional safeguard under § 37-20-161.

These sections outline your rights, the responsibilities of credit reporting agencies, and the steps to verify your identity when you place or lift a freeze.

What a Fraud Alert Does

A fraud alert is a notice on your credit file that tells potential lenders to take extra steps to verify your identity before opening new credit.

Unlike a freeze, it doesn’t block access—it simply asks creditors to be more careful. Fraud alerts are established by federal law under the Fair Credit Reporting Act at 15 U.S.C. § 1681c-1.

There are three main types:

  • Initial fraud alert – used when you suspect identity theft.

  • Extended alert – used for confirmed identity theft victims (requires a police or identity theft report).

  • Active-duty alert – designed for service members.

Fraud alerts are useful if you still plan to apply for credit soon and don’t want a full freeze, but they are not as strong as a freeze.

Security Freeze vs. Fraud Alert: Which Should You Use?

Choose a South Carolina security freeze when you want the strongest barrier to new accounts—especially after:

  • A data breach,

  • A stolen wallet,

  • Suspicious inquiries on your credit, or

  • Any situation where your Social Security number may be exposed.

A freeze is smart if you rarely apply for new credit and don’t mind taking an extra step before a mortgage, auto loan, or credit card application.

Choose a fraud alert if you plan to apply for credit soon and prefer not to lift a freeze. For those in the military, an active-duty alert offers flexible protection during deployments.

For many South Carolina consumers, combining both—a freeze for long-term protection and an alert during temporary access—offers the best of both worlds.

Cost, Timing, and Access

For South Carolina residents, placing, lifting (thawing), and removing a freeze is free.

Under § 37-20-160, consumer reporting agencies must:

  • Maintain reasonable procedures to verify your identity.

  • Process freeze requests promptly.

When you place a freeze, you’ll receive a PIN or password and instructions for lifting it for a specific creditor or time period.

Fraud alerts are also free.

  • An initial alert typically lasts one year.

  • An extended alert lasts longer but requires proof that you are an identity theft victim.

Special Protection for Minors and Incapacitated Adults

South Carolina proactively protects children and other vulnerable consumers.

Under § 37-20-161, a parent, guardian, or authorized representative can:

  • Create a credit file for a protected consumer, and

  • Immediately place a protected-consumer freeze.

This helps prevent thieves from opening accounts in a child’s name and should be done before major milestones such as applying for college or getting a driver’s license.

How to Place a South Carolina Security Freeze

  1. Gather proof of identity. Have copies of your driver’s license and proof of address ready.

  2. Contact each consumer reporting agency. You must place a freeze separately with each major bureau.

  3. Decide if you want a full or temporary freeze. Schedule a lift window if you’ll be applying for credit soon.

  4. Store your PIN safely. Keep your freeze confirmation and PIN in a secure place.

How to Place a Fraud Alert

  1. Contact any one of the three major credit bureaus. When you place an alert with one, it must notify the others.

  2. Verify your contact info. Lenders will use this to confirm your identity.

  3. Provide documentation if you’ve been a victim. For extended alerts, include an identity theft report.

When to Lift a Freeze

Lift your freeze only when necessary, such as:

  • Applying for a mortgage, auto loan, or new credit card,

  • Undergoing a background check for employment, or

  • Renting an apartment.

Afterward, re-freeze your file. Short, time-limited lifts give you access without losing protection.

Common Myths to Ignore

  • A freeze does not affect your credit score.

  • A freeze does not stop misuse of existing accounts—keep monitoring your bank and credit card statements.

  • A fraud alert is not a full lock. It helps, but lenders may still make errors—so monitor your reports regularly.

What to Do If You Suspect Identity Theft in South Carolina

  • Place a security freeze with all three bureaus right away.

  • Add a fraud alert if you expect to apply for credit soon.

  • Review your credit reports for unfamiliar accounts or addresses.

  • Document everything—keep letters, emails, and reports organized.

  • Don’t pay any debt collector for an account you don’t recognize. Preserve the evidence and seek legal help if necessary.

Why This Matters for South Carolina Residents

The South Carolina Identity Theft Protection Act works alongside federal law to give residents real power over their personal data.

Sections § 37-20-160 and § 37-20-161 ensure that freezes are:

  • Free for residents,

  • Quick to place or lift, and

  • Available to protect both adults and minors.

When credit bureaus fail to follow these rules—or when inaccurate information persists—a South Carolina consumer protection attorney can help you enforce your rights and restore your credit.

Quick Comparison

Feature Security Freeze Fraud Alert
Protection Strength Strong – blocks access Moderate – requests verification
Duration Until lifted 1 year (initial) or 7 years (extended)
Governing Law S.C. Code Ann. § 37-20-160 / § 37-20-161 FCRA, 15 U.S.C. § 1681c-1
Cost Free Free
Use When Preventing new credit after a breach Monitoring or applying for new credit soon

About This Post

This article targets key South Carolina search terms including South Carolina credit freeze, South Carolina fraud alert, protected consumer freeze, Columbia SC identity theft, and South Carolina Identity Theft Protection Act.

If you live in Columbia, Lexington, Richland County, or anywhere in the Midlands, Dave Maxfield Attorney LLC focuses on consumer protection, credit reporting errors, and identity theft issues that can damage credit and cause long-term harm.