Should you apply a credit block for your security?

Medicare, Optus, Latitude and more large companies in Australia (and throughout the world) have succumb to cyber attacks and data breaches this year alone, which begs the question should you apply a credit block for your security.

There has been a significant increase in cyber attacks targeting large companies in Australia over the last 5 years. According to various reports and statistics, the scale and frequency of cyber attacks have been growing rapidly. According to the Office of the Australian Information Commissioner (OAIC), the number of data breaches reported in Australia has increased from 114 in 2016 to 518 in 2020, representing a 354% increase in just four years.

What is a Credit Block

A credit block is a restriction that can be placed on your credit file, preventing credit providers and hackers from accessing your credit report and credit score. The three main credit reporting agencies in Australia are Equifax, Experian, and Illion, a credit block can be obtained through any of these agencies.

What are the benefits of a Credit Block?

There are several benefits of a credit block, including:

1. Protection from identity theft: A credit block can prevent fraudulent credit applications from being made in your name, which can protect you from identity theft.
2. Increased privacy: A credit block can help protect your personal information by limiting who can access your credit report.
3. Better control over your credit file: With a credit block in place, you can have greater control over who can access your credit file and when.
4. Protection from predatory lending: A credit block can prevent predatory lenders from accessing your credit file, which can help protect you from high-interest loans and other unfair lending practices.
5. Peace of mind: Knowing that your credit file is protected can give you peace of mind and reduce your overall stress level.

It is however important to note that if you put a block on your credit file you are unable to apply for finance while the block is in place.

This can also impact any current finance applications you are in the process of, so do not block your credit file if you are currently going through the process of applying for finance, or think you may need to in the near future.

For more information on whether a credit file block is right for you visit https://www.equifax.com.au/eform/submit/credit-ban