Credit Fraud Alert
A credit fraud alert is a notice sent to a credit reporting bureau that a consumer’s identity may have been stolen, and a request for new credit in that consumer’s name may not be legitimate. A credit fraud alert is a notice sent to a credit reporting bureau that a consumer’s identity may have been stolen, and a request for new credit in that consumer’s name may not be legitimate. While the credit fraud alert is in effect, if anyone, including you, attempts to apply for credit in your name, the financial institution receiving the credit request is expected to take additional steps to verify the applicant’s identity. When you set up a credit fraud alert, you are entitled to free credit reports from each major credit bureau. A credit fraud alert can protect you and your credit from someone opening fraudulent credit accounts under your name.
What Is a Credit Fraud Alert?
A credit fraud alert is a notice sent to a credit reporting bureau that a consumer’s identity may have been stolen, and a request for new credit in that consumer’s name may not be legitimate. A credit fraud alert can protect you and your credit from someone opening fraudulent credit accounts under your name. You should let one of the major credit bureaus (Experian, TransUnion, and Equifax) know if your card has been stolen, and they can put a credit fraud alert out.
Understanding Credit Fraud Alert
A credit fraud alert can be enacted by an individual to the credit reporting bureaus at no charge to the person submitting it. To complete this process, the person will be required to submit proof of identity so the credit reporting bureau can confirm the request is valid.
Types of Credit Fraud Alerts
There are three types of credit fraud alerts — initial, extended, and active military.
Initial Alert
An initial alert is valid for 90 days and can be renewed for 90-day terms thereafter.
Extended Alert
An extended alert is valid for seven years. It requires you to submit a police report to the credit bureaus notifying them that you have been a victim of identity theft and have reported the crime to the authorities.
Active Military Alert
An active military alert is valid for one year and can help protect your credit while you’re deployed. People commonly file credit fraud alerts if they believe they are victims of identity theft or if their information was compromised as part of a data breach.
For even greater protection, when you are certain your identity has been stolen, consider a credit freeze.
Special Considerations
If you believe someone may have stolen your personal or financial information and could use it to open fraudulent accounts in your name, contact one of the three major credit bureaus: Experian, Equifax, and TransUnion. Request that they place a credit fraud alert on your account. You can usually complete the process online, but you can also do it by mail or phone. The bureau you contact is supposed to then notify the other two about the fraud alert, but you may want to contact all three yourself to cover your bases. When you set up a credit fraud alert, you are entitled to free credit reports from each major credit bureau.
Examine your credit report for signs of fraud, such as accounts you don’t recognize. While the credit fraud alert is in effect, if anyone, including you, attempts to apply for credit in your name, the financial institution receiving the credit request is expected to take additional steps to verify the applicant’s identity. Thus, a fraud alert can create a bit of a hassle if you want to open a new account yourself, but it may also make enough of a hassle to prevent a thief from opening a fraudulent account in your name.
Related terms:
Checking Account
A checking account is a deposit account held at a financial institution that allows deposits and withdrawals. Checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods. read more
Consumer Credit File
A consumer credit file contains data about a consumer’s past borrowing and repayment history, and is used to determine their credit score. read more
Credit Freeze
A credit freeze is an anti-fraud measure in which a credit bureau refrains from sharing a consumer’s credit report with any third parties. read more
Credit Bureau
A credit bureau is an agency that collects and researches individual credit information and sells it to creditors for a fee. read more
Credit Report
A credit report is a detailed breakdown of an individual's credit history, provided by one of the three major credit bureaus. read more
Identity Theft
Identity theft occurs when your personal or financial information is used by someone else to commit fraud. read more
Synthetic Identity Theft
Synthetic identity theft is a type of fraud in which a criminal combines real (usually stolen) and fake information to create a new identity. read more