For years, I have been obtaining free annual credit reports (annualcreditreport.com) which must be provided by law. Recently, for the first time, when I tried to obtain my Equifax report, I was prompted for an email address and a mobile phone number, a new requirement that apparently cannot be bypassed. The other two bureaus, and Equifax previously, confirmed identity by asking knowledge based questions. They do not need my phone or email for anything.
Next, trying to obtain the report by phone instead of web site per instructions, I got to the point where I entered my ZIP code on the phone keypad, the voice menu system correctly repeated the number back to me, but every time I press 1 to indicate it is correct, the system acts like it got an invalid response and only gives me the option to enter further information by voice, not by the phone keypad. Just as with my phone number and email, they do not need to record my voice to provide my report.
I wrote a complaint to the annualcreditreport firm earlier this week, no response yet.
They have every reason to use this reporting requirement to collect more information about you.
They have every reason to conflate credit freeze with credit hold, and confuse consumers in order to extract regular payments from them.
They have zero reason to keep sensitive data about you secure. In fact, they have every reason to promote fear and uncertainty in the public that their sensitive personal information is in the hands of criminals as a growth opportunity for their industry to sell credit monitoring services.
They have successfully convinced the public that identity theft is a separate and distinct crime done exclusively by one person to another rather than simply fraud that they are aiding and abetting.
Consumers and credit reporting bureaus have a fundamentally adversarial relationship that no legislation can harmonize. They exist because they do serve a purpose for finance, which is to give an indication of how much money they can make lending money to someone. Regardless, this reporting does not have to be done by for-profit corporations. This can just as easily be done by non-profits or government agencies. Although these are not perfect, they are free of the perverse incentives driven by for profit corporate structures.