How to Place a Fraud Alert on Your Credit Report
Whether you've been burned before or simply want to take extra precautions to protect your identity, placing a fraud alert on your credit reports can give you peace of mind that your credit is safeguarded against identity thieves and scammers.
The process for adding a fraud alert on your credit reports is fairly straightforward, requiring only a few steps:
1. Contact Experian, Equifax or TransUnion (you only need to contact one of the three major credit bureaus).
2. Request that the credit bureau place a fraud alert on your reports.
3. You can either let the alert remain on your file until it expires or choose to remove it early if needed.
4. Once the alert expires, decide whether to renew it or enroll in further credit protection.
Read on for detailed information and instructions for instituting a fraud alert on your credit.
What Is a Fraud Alert?
Fraud alerts make it more difficult for identity thieves to open accounts in your name. When you apply for credit, the lender checks your credit report. If you've placed a fraud alert on your credit report, the lender will be notified when it pulls your credit.
"A fraud alert is a notification on a consumer credit report alerting a lender who is checking credit that the consumer may be a potential victim of identity theft," says Robert Siciliano, a security awareness expert and CEO of Safr.Me, a security education resource. When a lender sees that a credit report has a fraud alert, it has to take extra steps to verify the identity of the applicant before moving along the application process.
There are a few key times when you may want to consider setting up a fraud alert, according to Justin Lavelle, chief communications officer with online background check service BeenVerified. One of those instances is when you've been victimized in the past. You should also consider a fraud alert if you're concerned about identity theft due to losing important financial documents, a recent data breach or other situation that could result in someone accessing your credit report without your permission.
There are three types of fraud alerts you can place on your credit reports:
-- Initial fraud alert. An initial fraud alert lasts for one year, after which it automatically expires.
-- Extended fraud alert. This type of alert lasts seven years. If you were the victim of identity theft and can provide proof, such as an official report with the Federal Trade Commission or a police report, you can place an extended fraud alert on your credit file.
-- Active duty fraud alert. Similar to initial fraud alerts, active duty fraud alerts allow military members to place a one-year alert on their credit reports. The difference, however, is that they can renew the alert to match the length of time they'll be deployed. This type of fraud alert allows service members to remove their names from prescreened credit card offers for two years.
Note that placing a fraud alert on your credit reports doesn't impact your credit score, except for limiting access by potential fraudsters who might damage it.
[Read: Best Rewards Credit Cards.]
Fraud Alert vs. Other Credit Fraud Protection Options
Fraud alerts are one way to thwart identity thieves, but they're not the only tool you have at your disposal. There are other options for monitoring and protecting your credit.
Credit freeze. A credit freeze freezes your credit so that lenders you don't already do business with are unable to view your credit reports and new accounts can't be opened in your name until the freeze is lifted. To "thaw" your credit, you'll use a special password-protected account or PIN. A fraud alert is different because it puts a red flag on your credit report, Lavelle says. A credit freeze is more like a stop sign.
While a credit freeze makes it even tougher for fraudsters to misuse your credit, Lavelle notes that it doesn't protect against all types of identity theft. "A credit freeze will not prevent a thief/hacker from using your current accounts," he says.
Credit lock. Often confused with credit freezes, a credit lock works similarly but is a different service. Credit freezes are governed by federal law, while credit locks are products offered by each credit bureau and might differ slightly. It's also much easier to unlock your credit than it is to thaw it. Equifax and TransUnion offer credit locks for free, while Experian offers it as part of a bundle that requires a fee.
Credit monitoring. If you simply want to keep an eye on your credit report activity, credit monitoring could be the right option. There are both free and paid services that provide credit monitoring. Usually, credit monitoring alerts you to possible fraudulent activity after the fact. For instance, you might find an account listed on your credit report that you don't recognize.
"By that time, the damage to the consumer's credit may have already taken place," Lavelle says. However, finding out about it early can help you mitigate the damage if you act quickly.
Identity theft protection. Though often used interchangeably, identity theft protection services are more robust than credit monitoring. "Although a credit monitoring service can alert a consumer to malicious activity on their credit report, an identity theft monitoring service would alert them to suspicious activity that involved their identity in regards to bank accounts, criminal databases and other areas where their Social Security number was utilized," Lavelle says.
[Read: Best Balance Transfer Credit Cards.]
How to Place a Fraud Alert on Your Credit Reports
Considering the many options you have when it comes to protecting your credit, a fraud alert might not always be the right choice. However, if you decide it is, instituting one is pretty easy.
"You can call any one of the credit bureaus, initiate the alert via prompts during the phone call, and that credit bureau will then communicate the fraud alert to the other two bureaus," Siciliano says. That's because under the Fair Credit Reporting Act, each bureau is required to notify the other two credit bureaus when a consumer places a credit alert on their file. It's also possible to create a fraud alert online via the bureau's website.
Equifax fraud alert. You can call Equifax at 800-525-6285 to request a fraud alert over the phone. Alternatively, you can request an Equifax fraud alert online by following these steps:
1. Visit Equifax's credit report services page.
2. Click "Get Started."
3. Create an account. First, you'll need to provide personal details such as your name, Social Security number, address and phone number. Next, enter your email address and create a password.
4. Verify your email address.
5. Select "Place or Manage an Alert."
6. At this point, you can place an initial fraud alert or active duty alert.
Note: If you want to extend an existing fraud alert, you'll need to complete an Extended Fraud Alert Request Form and mail it to the address provided.
Experian fraud alert. You can call Experian at 888-397-3742 to request a fraud alert over the phone. Alternatively, you can request an Experian fraud alert online by following these steps:
1. Visit Experian's fraud center page.
2. Click "Add a fraud alert."
3. Choose whether you want to create a temporary fraud alert, active duty fraud alert or extended fraud victim alert.
4. On the next page, you have the option to either enter information from a recent Experian credit report or enter your personal information to request the alert.
5. Agree to the terms and conditions and click "Submit."
6. At this point, you can place an initial fraud alert or active duty alert.
Note: If you want to extend an existing fraud alert, you'll need to complete an extended fraud victim alert request form and mail it to the address provided.
TransUnion fraud alert. You can call TransUnion at 800-680-7289 to request a fraud alert over the phone. Alternatively, you can request a TransUnion fraud alert online by following these steps:
1. Visit TransUnion's fraud alert page.
2. Select the "Add Fraud Alert" tab.
3. Choose whether you want to create an initial fraud alert, extended fraud alert or active duty military fraud alert.
4. Log into your existing TransUnion account or create a new account if you don't already have one.
5. Once again choose the type of fraud alert you want to create.
6. Complete the form and click "Continue."
[Read: Best Cash Back Credit Cards.]
How to Remove a Credit Fraud Alert
Once your fraud alert is in place, you don't need to do much else since it doesn't actually stop your ability to get credit, according to Siciliano. Plus, it eventually expires. "Once a fraud alert is enabled, there's really no reason to lift it," he says.
Even so, if you're in the process of shopping for a car loan or mortgage, for instance, you might not want to deal with multiple phone calls and the added hassle of verifying your identity. In this case, you can lift the fraud alert before it expires.
To remove a fraud report through Experian, you'll need to mail in a request along with documentation that proves your identity. You can also upload the documentation to remove the alert online.
The process for removing a fraud alert through Equifax is similar. Mail your written request and documents proving your identity to the address provided by Equifax.
Finally, to remove a fraud alert through TransUnion, visit the same fraud alert page and select the "Remove Fraud Alert" tab. Click "Remove Alert" and log in to your account. From there, follow the prompts to have the alert lifted.
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