- A fraud alert is a free service credit bureaus offer to protect fraud victims against identity theft.
- If a lender sees a fraud alert on your credit report, they must confirm your identity before opening your account.
- You only need to place a fraud alert with one bureau, as it must notify the other two of the alert.
Introduction to fraud alert
Identity theft is often a crime of opportunity as hackers exploit weaknesses in your digital security. The best identity theft protection services and best credit monitoring services can give you a solid wall of protection and some recourse for identity theft recovery.
However, the credit bureaus also offer free tools that go a long way toward preventing identity theft, such as a fraud alert.
What is a fraud alert?
A fraud alert is a free service offered by credit bureaus that acts as a red flag to any third parties pulling your credit report. If a creditor sees a fraud alert when viewing your credit report, they're required to confirm your identity, usually through a phone call, before issuing credit in your name.
The importance of fraud alerts in identity protection
While anyone can place a fraud alert on their credit report to mitigate the risk of identity theft, they especially benefit people who have already been targeted or believe they will be targeted. This is because identity theft victims are often targeted repeatedly. According to the Identity Theft Resource Center, 29% of identity theft victims were repeatedly targeted.
Types of fraud alerts
There are three types of fraud alerts that you can place on your credit: initial, extended, and active duty. They all perform similar functions but differ in how long they last and who can sign up for them.
Initial fraud alert: Anyone can place an initial fraud alert on their credit, and this is the most common type of fraud alert. They last one year before the credit bureaus automatically remove them, at which point you will have to place another fraud alert on your credit. When you place a fraud alert on your credit report, you are given a free credit report for review.
Extended fraud alert: Extended fraud alerts were made specifically for people who have already been the victim of identity theft. Extended fraud alerts last seven years, and anybody who signs up gets two free credit reports in the first year. To sign up for an extended fraud alert, you will need a copy of a law enforcement agency report or an identity theft report from the Federal Trade Commission.
Active duty alert: This fraud alert is meant for members of the military going into active duty. Like an initial fraud alert, active duty alerts last one year. They also prevent insurance and credit card companies from contacting you with promotional offers for two years.
Steps to set up a fraud alert
Contacting one of the major credit bureaus
Setting up a fraud alert is quick and easy. You just need to contact one of the three credit bureaus, Experian, Equifax, or TransUnion. The bureau you call is legally required to tell the other two about the fraud alert.
Here's the contact information for each of the three bureaus:
- Equifax— Call 800-525-6285 or add a fraud alert through your online Equifax account
- Experian— Call 888‑397‑3742 or add a fraud alert through Experian's Fraud Alert Hub
- TransUnion— Add a fraud alert by calling (800) 680-7289 or through TransUnion's online account
What to do after setting up a fraud alert
After you set up your fraud alert, be sure to monitor your credit reports for potential fraudulent activity and you may want to employ other identity protection services.
Benefits of setting up a fraud alert
A fraud alert isn't an airtight defense against identity theft, nor does it remedy any damage that an instance of identity theft has already caused. However, placing a fraud alert can offer some peace of mind and stop any further damage to your credit, and is the first step in recovering from identity theft.
FAQs
Fraud alerts and credit freezes are both free services offered by credit bureaus. However, while a fraud alert requires creditors to take extra precautions with your credit report, a credit freeze prevents them from pulling your credit report at all. Additionally, when you place a credit freeze, you must reach out to each credit bureau individually to freeze your credit.
You'll need to provide information so that the credit bureau can verify that it is you making the request. This includes current contact information, including your name, address, Social Security number, and a proof of identity document.
Yes, you can still apply for and open new credit. A fraud alert may require lenders to take extra steps to verify your identity before approving credit, which is how identity theft is prevented, but it doesn't prevent you from obtaining new credit.
No, a fraud alert has no impact on your credit score. It is also illegal for a creditor to reject your credit application because you have a fraud alert on your credit report.
No, placing, renewing, or removing a fraud alert is free of charge.
To renew or remove a fraud alert, you'll need to contact the credit bureaus directly. If it's not an extended fraud alert, you will have to renew after one year if you wish to maintain it.
Active duty and initial fraud alerts expire after twelve months and extended alerts last 7 years. You can add a new alert after one expires.
