Fraud alerts are notices on credit reports to indicate potential identity theft, reducing the risk of further incidents. They can be requested by those at risk and do not affect credit. Credit bureaus offer extended fraud alerts and credit freezes to restrict access to credit reports.
A fraud alert is a notice attached to someone’s credit report that indicates that he or she has been or may become a victim of identity theft. Fraud alerts are put out at the request of people who want to notify creditors to be careful when opening new accounts in their names. They can be used as a tool to reduce the risk of identity theft and prevent further incidences of identity theft and do not negatively affect someone’s credit.
Someone who thinks they may be at risk of identity theft should request a fraud alert. Some things that can put someone at risk include: stolen mail, a lost or stolen wallet, or a phishing scam. By placing a fraud alert, the consumer will ensure that all companies asked to open accounts on the consumer’s behalf exercise special due diligence to confirm that those accounts are legitimate. Once someone becomes a victim, placing a fraud alert notifies companies that some of the activity on the credit report may be fraudulent and in dispute, and ensures that special care is taken by companies opening new accounts on the consumer’s behalf. .
People can place a fraud alert by calling any of the three major credit bureaus and asking for one. The representative will ask for some information to verify the caller’s identity, to confirm that the caller is authorized to place a fraud alert. This clerk will then notify the other two credit bureaus so they can send out fraud alerts as well. Once a fraud alert is placed, it lasts for 90 days and the consumer can request a free report from each agency to look for fraudulent activity.
An extended fraud alert 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 that they cannot fall victim to identity theft while on active duty.
Another option is a credit freeze, which restricts authorized access to someone’s credit report. When a credit freeze is used, the consumer must lift it so that companies have access to the credit report when applying for credit, and someone who tries to use that consumer’s information to create a fraudulent account will not be able to lift it. , which will result in a denial of credit.
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