What You Need To Know About Fraud Alerts
When you’ve been a victim of identity theft, it’s tough to know what to do first. One of the phrases you may have heard when it comes to identity theft is a fraud alert. But do you know what fraud alerts do, what types are available or how fraud alerts work?
A fraud alert is a notice that is placed on your credit report that alerts credit card companies and others who may extend you credit that you may have been a victim of fraud, including identity theft. Think of it as a “red flag” to potential lenders and creditors.
Fraud alerts are free. To place a fraud alert on your credit report, you can call any of the three credit bureaus, (Equifax, Experian, and TransUnion) or visit their official websites to learn more. Keep in mind that you only need to contact one credit bureau to place a fraud alert- the other two bureaus will be notified.
- A fraud alert encourages third parties to take extra steps to verify your identity before extending credit. With an initial one-year fraud alert, companies are encouraged to take reasonable steps to confirm you are who you say you are, such as contacting you at a phone number you provide, before completing a request for credit. However, it’s important to note a fraud alert would not prevent an identity thief from attempting to use an existing account – a credit card, for example.
- There is a seven-year fraud alert available to you. These fraud alerts are also known as extended fraud alerts. An extended fraud alert on your credit reports lasts for seven years. In order to place an extended fraud alert, a police report or a Federal Trade Commission Identity Theft Report is required.
- For service members, there is an active duty military alert. An active duty alert is an option specifically available for U.S. service men and women. Like an initial one-year fraud alert, an active duty alert encourages companies to take extra steps to verify your identity, such as contacting you by phone, before opening new accounts in your name or modifying existing ones. This type of fraud alert also lasts for one year.
- You can update or remove a fraud alert by phone or mail. Removing or updating contact information on a fraud alert—one-year, seven-year, or active duty military alert—can be done by phone or mail at any of the three nationwide credit bureaus.
- Someone else is able to manage your fraud alert on your behalf.
A “personal representative” can be designated to manage a fraud alert on your behalf with a Power of Attorney or court appointed document. The personal representative can add fraud alerts, delete them or update contact information.
Information from this article can be found on Equifax.com.
