Need to freeze your credit after the Social Security number breach? Here's how.

Freezing your credit is one of the best ways to combat identity theft — and it's free to do. Security experts are advising all Americans to take a few minutes to complete what they deem an essential step in protecting one's credit files in a day and age when cybersecurity breaches are becoming increasingly common. 

At the three big credit bureaus, Experian, Equifax and TransUnion, placing a security freeze on your credit file is easy, according to cybersecurity expert David Malicoat. And the recent lawsuit claiming hackers accessed the Social Security numbers of "billions of individuals," he said, is a good reminder to do so. 

It's incumbent upon consumers to be proactive about protecting their finances before, and not after breaches take place. The consequences of not doing so can include damage to your credit and significant financial losses. 

"The options are there for a reason. I think everyone should have their credit frozen until such a time as you need it," Malicoat told CBS MoneyWatch. "You just click a button that allows no changes until you unfreeze it, and I think that's right where everyone needs to be."

Why should I freeze my credit?

On Friday, National Public Data confirmed a security incident that it said "may have involved some of your personal information." It urged the public to take a number of steps to safeguard their identities, including freezing their credit. 

"A credit freeze means potential creditors cannot get your credit report. That makes it less likely that an identity thief can open new accounts in your name," NPD said.  

Freezing your credit will prevent bad actors from taking out loans, opening credit cards or making any other transactions that might require a credit check in your name. 

To be sure, if a legitimate party needs to run a credit check and they are unable to do so, they'll likely contact you, at which point you can lift the freeze. 

"If someone tries to run it and it's a valid thing, they'll say, 'Your credit file is locked, can you unlock it?' The whole thing about locking it is you don't want people who are not authorized to have access to it." 

How do I freeze my credit? 

Go directly to the respective websites of each of the credit bureaus. Create a username and password in order to log in to your account. Once you have an account, you'll have the ability to click a button and freeze your credit. 

"At this point, if you haven't gone to the credit bureaus, go to their websites, log in and access your credit report for each one. It's free and you'll have the option to say, 'freeze my credit report' with that specific credit bureau," Malicoat said.