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IDENTITY THEFT INFO > LEARN the Truth > The Truth About Fraud Alerts

The Truth About Fraud Alerts

What is a Fraud Alert?

A fraud alert is a notification, or a “flag,” used by the major credit bureaus (Equifax, Trans Union and Experian) to call attention to potentially suspicious activity on your credit report.  When you or someone else tries to open a new account (for instance, by applying for a new credit card, car loan, cell phone), the creditor will be required to contact you by phone to verify that you really want to open a new account. If you aren’t reachable by phone, the account should not be opened.

BUNK ALERT:  Be aware, however, that a credit issuer is NOT required by law to contact you – even if you have fraud alert in place.

How do I set up a Fraud Alert?

It’s fairly simple – and it’s free. All you need to do is contact each of the consumer fraud departments at each of the three major credit bureaus and ask them to flag your credit file for fraud.

BUNK ALERT:  The three major bureaus claim to share fraud alert data once you contact one of them. However, studies have shown that this process doesn’t always work, so your best option is to contact each bureau individually to place an alert.

What happens when I activate a Fraud Alert?

Within 24 hours, your alert should be activated at the credit bureau. You should receive a confirmation in the mail a week or two after your call. If you don’t receive this confirmation, call and place the alert again.

BUNK ALERT:  Think you’re safe from here to eternity? Nice try. Be aware: your fraud alert will only be effective for 90 days.  After that, you’ll need to repeat the process.

Is my identity safe once I’ve placed the Fraud Alert?

It is true that your credit information is more secure. But fraud alerts are still not foolproof. A fraud alert can be, and sometimes is, ignored by creditors.

BUNK ALERT:  If you suspect you’re a victim of identity theft, or have already become a victim, fraud alerts are only a start in trying to protect your credit. You also need to pay close attention to your credit report to make sure no new credit inquiries or credit accounts are being opened.

I protect my credit file by issuing Fraud Alerts every few months.  Isn’t that enough?

The idea that consumers can continue to issue fraud alerts against their credit files is currently being tested in court. It should also be pointed out that getting a copy of your credit report after identity theft has occurred - whether it is through a credit monitoring service or on your own - is akin to closing the barn door after the horse has already gotten out.

BUNK ALERT:  Neither practice will prevent you from becoming an identity theft victim, nor will they help you clean up the mess after you have been victimized.

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