A fraud alert tells potential lenders that you suspect you’re a victim of fraud. If you attempt to buy a car, open a credit card account, or just increase the amount on an existing credit line, the fraud alert is there to ensure the lender double checks your identity. Should an identity thief attempt to open an account under your name, he may be foiled by the extra security measures. Today, setting up a fraud alert is quick and convenient.
Initial Fraud Alert
An initial fraud alert is temporary and lasts for one year. It’s the first fraud alert applied to an account. All national credit reporting companies – Equifax, Experian, and TransUnion – have an online system for setting up initial fraud alerts, so they can be placed within seconds. However, it’s important not to abuse the system by setting up fraud alerts without good reason. Experian once sued a credit monitoring service for activating false fraud alerts. Fraud alerts are a fail-safe meant to be used under specific circumstances.
Initial Forms
All three credit reporting agencies work together to place fraud alerts. Setting up a fraud alert with Experian, for example, automatically notifies the other two companies.
Extended Fraud Alert
An extended fraud alert is similar to an initial alert but is considered permanent because it lasts for seven years. Requesting an extended fraud alert is more involved than an initial alert, however. No major credit reporting company has an online process for extended alerts. You must print and complete a short form, and then mail it to the respective reporting company. Include two documents that verify your identity; the type of documents needed are listed on each form.
Extended Forms:
Active Duty Alert
An active duty alert is also similar to an initial fraud alert, and it lasts for 12 months as well. This alert is for military members who are placed on active duty and therefore won’t have the time to monitor their credit for potential fraud. Like with extended fraud alerts, active duty alerts usually can’t be set up online.
You’re often required to print, complete, and mail a form along with proof of identity. However, Equifax allows you to complete the request online with the Equifax Active Duty Alert form.
This alert is also passed on to the other credit bureaus. Experian offers an online Active Duty Alert Form as does TransUnion here.
Alternatively, you can call a credit reporting company to set up a fraud alert over the phone. Be prepared to offer proof of identity, such as your current address and social security number.
Contact the Credit Bureaus by Phone
- Experian: 1-888-397-3742
- Equifax: 1-800-525-6285
- TransUnion: 1-800-680-7289
Conclusion
You have up to three ways of going about setting up a fraud alert, depending on its type. Choose what’s most convenient for you, and rest assured that the reporting companies will share the information between them. Unfortunately, while fraud alerts are helpful, they can’t prevent fraud entirely. It’s up to you, the consumer, to monitor your credit report and bring attention to errors.