A fraud alert is a notice on a credit report warning of identity theft. Consumers can request one if they suspect they are at risk. It does not affect credit and lasts 90 days. An extended fraud report lasts seven years and requires proof of identity theft. A credit freeze limits access to a credit report.
A fraud alert is a notice attached to someone’s credit report indicating that they have been or may be the victim of identity theft. Fraud reports are placed at the request of individuals who wish to warn creditors to be careful when opening new accounts in their name. They can be used as a tool to reduce the risk of identity theft and to prevent further incidences of identity theft and do not negatively affect someone’s credit.
Someone who thinks they are at risk of identity theft should request a fraud alert. Some things that could put someone at risk include: stolen mail, a missing or stolen wallet, or a phishing scam. By placing a fraud alert, the consumer will ensure that all companies applying to open accounts in the consumer’s name exercise special care to confirm that such accounts are legitimate. Once someone has become a victim, sending a fraud alert informs companies that some of the activity in the credit report may be fraudulent and controversial, and ensures that companies will open new accounts in the consumer’s name.
People can submit a fraud alert by calling one of the three major credit bureaus and requesting one. The representative will ask for some information to verify the identity of the caller, to confirm that he is authorized to send a fraud alert. Then, that officer will notify the other two credit bureaus so they can send you fraud alerts as well. Once a fraud alert is entered, it lasts for 90 days and the consumer can order a free report from each bureau to look for fraudulent activity.
An extended fraud report lasts for seven years. This option usually requires proof that someone has been a victim of identity theft, such as a police report. Many credit bureaus also offer deployment fraud alerts to members of the military so they can’t be a victim of identity theft while on active duty.
Another option is a credit freeze, which limits authorized access to someone’s credit report. When a credit hold is used, the consumer must lift it in order for companies to have access to the credit report when applying for credit, and someone attempting to use that consumer’s information to create a fraudulent account will not be able to lift the hold, which will result in a denial of credit.
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