If you are a victim of identity theft, place fraud alerts or security freezes on your credit reports, file a report at IdentityTheft.gov, and take steps to protect your credit history and finances.
Why should I set up a fraud alert?
A fraud alert requires creditors, who check your credit report, to take steps to verify your identity before they open a new account, issue an additional card, or increase the credit limit on an existing account based on a consumer’s request. When you place a fraud alert on your credit report at one of the nationwide credit reporting companies, it must notify the others.
There are two main types of fraud alerts: initial fraud alerts and extended alerts. Servicemembers also have the option of an active-duty alert.
When should I place an initial fraud alert?
You can place an initial fraud alert on your credit report if you believe you are, or are about to become, a victim of fraud or identity theft. Credit reporting companies will keep that alert on your file for one year. After one year, the initial fraud alert will expire and be removed. You have the option to place another fraud alert at that time.
When you place an initial fraud alert, creditors must take reasonable steps to make sure the person making a new credit request in your name is you before granting that request. If you provide a telephone number, the creditor must call you or take reasonable steps to verify whether you are the person making the credit request before granting the credit.
When you place an initial fraud alert on your file, you’re entitled to order one free copy of your credit report from each of the nationwide credit reporting companies. These free reports do not count as your free annual report from each credit reporting company.
When should I place an extended alert?
If your identity has been stolen and you have filed an identity theft report at IdentityTheft.gov, you can place an extended alert on your credit report.
An extended alert is good for seven years. If you have an extended alert, a creditor must contact you in person, on the telephone, or through another contact method you choose to verify if you are the person making the credit request before extending new credit.
When you place an extended fraud alert on your file, you’re entitled to order two free copies of your credit report from each nationwide credit reporting company over a 12- month period. Your name will also be removed for five years from the nationwide credit reporting companies’ pre-screen marketing lists for credit offers and insurance.
Information provided by the Consumer Financial Protection Bureau.