How Does Fraud Alert Work?
When you put a fraud alert on you credit file it is because you obviously suspect someone is trying to steal your identity and open accounts in your name. But times are changing and more and more people are concerned about identity theft, a lot of people wonder if putting a fraud alert on their credit file is an option before the panic button is hit.
Fraud alerts aren‘t the perfect weapon to protect yourself against identity theft, however. A fraud alert can sometimes be ignored by creditors. If you think your identity has been stolen, fraud alerts are only the start in a long process of trying to protect yourself.
A fraud alert is attached to your credit report. When any person tries to open up a new credit account in your name, like a credit card or a car loan, the lender should contact you by phone to verify that it isn‘t a case of identity theft. You’ll notice the word ‘should’ not ‘must’, as creditors are not required by law to make the phone call.
Placing a Fraud Alert
To place a fraud alert, contact each of the credit bureaus (full details listed at the bottom of the page) and inform them that you want to flag your credit file for fraud. Contact each bureau individually, don’t expect that they will share information (even though they should). It’s a good idea to make a written note of the time and date you contacted each bureau in case you need that information at a later date.
An alert should be activated within 24 hours by each credit bureau and you should receive a letter of confirmation in the mail shortly after. Check with each bureau about their procedures to get a clear action plan from them and write down everything. If they inform you that you should receive confirmation in writing within a month and it doesn’t arrive, contact them immediately.
A fraud alert mean that your name will be removed from all pre-approved credit and insurance offers for a period of two years, but the fraud alert will only remain in place 90 days. You can reactivate the alert if you think it’s needed.
Going a Step Further
If you’re already a victim of identity theft you can apply for a 7-year victim statement, this keeps the fraud alert in place for 7 years, but you will need to prove that you have already been a victim of fraud.
Will a Fraud Alert Stop me Getting a New Credit Card?
It will create a small inconvenience each time you apply for any sort of credit. However, if you are applying for a major loan, like a home loan or car loan, make sure you explain to your broker that a fraud alert is in place.
The credit company lending the money should contact you first using the contact number(s) you have supplied the credit bureaus. Once you’ve authorized them to continue they will begin.
Removing a Fraud Alert
Request any fraud alert removals in writing. You’ll have to include your name, social security number, current and previous addresses, date of birth, and telephone number and send it to the fraud departments of the 3 credit bureaus.
Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
Experian
P.O. Box 2002
Allen, TX 75013
1 888 397 3742
Trans Union
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
