The Free Credit Perk Most Military Families Miss Out On

Deployment and data breaches both raise the odds that a service member’s personal information ends up in the wrong hands. The good news is that military families have access to protections civilians don’t, starting with a free active duty credit alert that requires lenders to verify your identity before opening new credit in your name. Combine that with a credit freeze, a designated personal representative, and a close eye on your DEERS records, and you can significantly cut your risk of identity theft.

This guide walks through exactly what to set up before you leave, what to do the moment you learn your information was exposed, and how spouses can keep monitoring the family’s credit while a service member is overseas.

Why Military Families Face a Higher Risk of Identity Theft

Identity thieves target military families for a few specific reasons. Deployment often means unmonitored mail at a home address, a change of duty station that scatters paperwork, and long stretches where a service member can’t check their own accounts or credit reports in real time. On top of that, military personal information has been swept up in a string of high-profile data breaches over the years, including breaches affecting the Defense Department and major credit bureaus.

The numbers back this up. According to the Consumer Financial Protection Bureau (CFPB), military consumer complaints tied to identity theft debts climbed nearly fivefold between 2014 and 2022, from just over 200 a year to more than 1,000. In 2021 alone, military consumers filed roughly 50,000 identity theft reports with the Federal Trade Commission (FTC). For service members, the stakes go beyond a damaged credit score: unresolved debt or fraud on your record can complicate a security clearance review.

What Is an Active Duty Credit Alert?

An active duty credit alert is a free protection built specifically for military personnel. Once it’s on file, any lender or business has to take extra steps to verify your identity before opening a new account, issuing an additional card, or raising a credit limit in your name.

Here’s how to place an active duty alert on your credit report:

1. Contact just one of the three major credit bureaus, Equifax, Experian, or TransUnion. That bureau is required to notify the other two.
2. Provide identifying information to confirm you’re an active duty or activated National Guard or Reserve member.
3. The alert stays active for one year and can be renewed for as long as your deployment lasts.

Placing the alert also removes your name from prescreened credit and insurance offer lists for two years, which cuts down on the kind of mail that’s easy for someone else to intercept.

Credit Freeze vs. Fraud Alert: What’s Better for a Long Deployment?

Families often ask whether a credit freeze beats a fraud alert during a long deployment. The honest answer is that they solve slightly different problems, and many military families use both. The table below compares different options side-by-side.

A credit freeze is the strongest option because it locks your credit file completely. Nobody, including you, can open new credit without temporarily lifting it first. That makes it a good fit for a long deployment where you don’t expect to apply for a loan, a new phone plan, or an apartment.

An active duty alert is a lighter-touch option that still requires verification but doesn’t require you to remember to lift it if a legitimate credit check comes up unexpectedly, like a landlord running your credit for base housing. Both are free under federal law, and you’re allowed to use both at the same time.

If you learn your Social Security number or other personal data was exposed in a Defense Department or military-adjacent data breach, here’s what to do:

• Confirm the breach and what was exposed. Look for official notification from DoD, your service branch, or the affected agency rather than relying on secondhand news.
• Place a credit freeze with all three bureaus. This is the fastest way to stop new accounts from being opened while you sort out the rest.
• Pull your free credit reports from all three bureaus and scan them for accounts or inquiries you don’t recognize.
• Change passwords on financial, email, and DEERS-linked accounts, and turn on two-factor authentication wherever it’s offered.
• Report identity theft if you find fraudulent activity. A formal identity theft report makes it easier to dispute fraudulent transactions later.
• Watch for tax and benefits fraud, not just credit card fraud. Stolen Social Security numbers are often used to file fraudulent tax returns or claim benefits.

Assigning a Personal Representative Before You Deploy

If you’re deployed, you can’t always manage your own credit alert from overseas, especially with limited internet access or an unpredictable schedule. Federal law lets you name a personal representative, someone authorized to place, renew, or remove an active duty alert on your behalf while you’re deployed. Set this up before you leave by:

• Confirming with your bank or the credit bureaus what documentation they require to recognize a personal representative.
• Making sure the representative (often a spouse) has your basic identifying information on hand, including your Social Security number.
• Pairing this with a broader financial plan, since your representative may also need account access for managing household finances during deployment

Protecting Your DEERS and DMDC Information

Your Defense Enrollment Eligibility Reporting System (DEERS) and Defense Manpower Data Center (DMDC) records hold sensitive personal information for you and every dependent tied to your ID card. If that data is compromised or a dependent’s information is stolen, someone could potentially misuse it to file fraudulent TRICARE claims or attempt to access base services.

Here are a few tips for protecting your data:

• Log in to milConnect periodically to verify your family’s information is accurate and hasn’t been altered without your knowledge.
• Update DEERS promptly after a marriage, divorce, or new dependent so old records don’t linger as a target.
• Never share ID card or DEERS details over email or phone unless you initiated the contact with a verified official number.
• Shred or securely store any printed TRICARE or benefits paperwork that lists a dependent’s Social Security number.

Use a Special Power of Attorney, Not a General One

A general power of attorney (POA) gives someone broad authority over your finances and legal affairs, which sounds convenient, but it’s also a bigger risk if that document is lost, stolen, or misused. A special (or limited) POA restricts your representative’s authority to specific tasks, like managing a single bank account or handling a car sale, which limits your exposure if something goes wrong.

Every installation’s Legal Assistance Office can draft a free special POA tailored to what your spouse or representative actually needs to handle while you’re gone, rather than handing over blanket authority you don’t need them to have.

Does USAA Include Identity Theft Coverage?

USAA doesn’t automatically bundle identity theft protection with a checking account or general membership. Instead, USAA identity theft coverage typically shows up in one of two places:

• Homeowners insurance: Standard USAA homeowners policies generally include identity theft recovery coverage, often up to a few thousand dollars, to help cover the cost of restoring your identity after fraud.
• Optional cyber or identity protection add-ons: USAA also offers individual identity and cyber protection products that expand coverage for things like fraudulent loans, data restoration, and recovery services.

If you’re not sure what your policy includes, it’s worth a quick call to confirm, especially before deployment. And if you’re renting rather than owning, check whether your renters policy includes similar identity theft language.

Best Identity Theft Protection Options for Deployed Service Members

Military families don’t have a single “best” option for avoiding identity theft, but a solid deployment identity protection setup usually includes:

• An active duty credit alert or credit freeze, placed before you leave.
• A personal representative authorized to manage that alert while you’re gone.
• Free credit monitoring, which some banks and credit unions offer automatically to military members.
• A mail plan, such as a trusted neighbor collecting mail or a temporary hold with USPS, so sensitive documents don’t sit in an unattended mailbox.
• Two-factor authentication on banking, email, and DEERS-linked accounts.

Paid identity monitoring services can add peace of mind, especially the kind that watches for your Social Security number on the dark web, but treat them as a supplement to the free federal protections above, not a replacement for them.

How Military Spouses Can Monitor Family Credit While the Service Member Is Overseas

Spouses handling the home front don’t need to wait for a monthly statement to catch a problem. A few habits make ongoing monitoring manageable:

• Check joint accounts weekly for unfamiliar charges or new account notifications.
• Set up account alerts for large transactions, new credit inquiries, and login attempts from unrecognized devices.
• Pull a free credit report every few months (federal law entitles everyone to free weekly reports from the major bureaus).
• Keep a shared list of which alerts or freezes are active, so nothing lapses without either spouse noticing.

FAQ

Q: What Is an Active Duty Credit Alert and How Does It Protect Deployed Service Members?

An active duty credit alert is a free, one-year protection that requires lenders and businesses to verify your identity before opening new credit, issuing a card, or raising a credit limit in your name. It’s designed for deployed and activated service members and can be renewed for as long as deployment lasts. It also removes you from prescreened credit and insurance mailing lists for two years.

Q: Is a Credit Freeze Better Than a Fraud Alert During a 9-Month Deployment?

For most nine-month deployments, a credit freeze offers stronger protection because it blocks all new credit access until you lift it. A fraud alert still requires verification but allows lenders to view your report. If you don’t expect to apply for credit while deployed, a freeze is usually the safer default. If you want a more flexible option that doesn’t require remembering to lift it, an active duty or fraud alert may be more practical.

Q: How Can Military Spouses Monitor Family Credit When the Service Member Is Overseas?

Spouses can monitor joint accounts directly, set up transaction and login alerts, and pull free credit reports regularly. If the service member sets up a personal representative designation before deploying, the spouse may also be able to manage or renew credit alerts on their behalf without needing to reach the service member overseas.

Q: What Should a Military Family Do Immediately After a Defense-Related Data Breach?

Confirm the breach through an official source, place a credit freeze with all three credit bureaus, pull your free credit reports to check for unfamiliar activity, and change passwords on financial and DEERS-linked accounts. If you find signs of fraud, file an identity theft report so you have documentation to dispute any fraudulent charges or accounts.