Learn About Fraud Alert Information and Protection

Understanding What a Fraud Alert Is and How It Works

A fraud alert is a notice placed on your credit report that tells lenders and creditors to take extra steps before opening new accounts in your name. When a fraud alert is active, anyone trying to use your personal information to open credit cards, take out loans, or make other financial transactions will be flagged to verify your identity first. This verification step creates a barrier that makes it harder for fraudsters to commit identity theft using your name and credit information.

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The three major credit reporting agencies—Equifax, Experian, and TransUnion—maintain these fraud alerts. When you place a fraud alert with one agency, that agency must notify the other two within one business day. This means your protection spreads across all three reports simultaneously. The alert typically lasts for one year from the date you place it, though you can renew it when it expires if you believe you still face fraud risk.

Fraud alerts come in different types depending on your situation. An initial fraud alert is used when you suspect your information may have been compromised but fraud has not yet occurred. An extended fraud alert is used when you have already been a victim of identity theft and have filed a report with the Federal Trade Commission (FTC). The extended alert lasts seven years instead of one year. Active duty military members can also place a military fraud alert, which lasts two years.

Unlike a credit freeze, which completely locks your credit report so new accounts cannot be opened at all, a fraud alert still allows you to open new accounts—it just requires extra verification. This means you maintain more flexibility in your financial life while still gaining protection. Legitimate creditors who already know you, like your bank or credit card issuer, may not even be affected by the alert since they have other ways to verify your identity.

Practical Takeaway: If you suspect your personal information has been exposed or compromised, placing a fraud alert with one of the three credit agencies is a simple first step that spreads protection across your entire credit report within one business day.

Signs That You May Need Fraud Protection

Recognizing warning signs of identity theft or fraud exposure helps you take action before significant damage occurs. One of the earliest indicators is receiving bills or statements for accounts you did not open. This might include credit card statements arriving at your address for cards you never applied for, medical bills from healthcare providers you never visited, or utility bills for services you did not authorize. These notifications suggest someone used your name and personal information to create accounts.

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Another warning sign is finding unfamiliar inquiries on your credit report. When lenders check your credit to decide whether to approve a loan or credit application, this creates a "hard inquiry" that appears on your report. If you see inquiries from companies you never contacted, this could mean someone applied for credit in your name. You can request a free copy of your credit report from AnnualCreditReport.com—the only government-authorized source for free reports—and review it for unfamiliar accounts or inquiries.

Sudden changes in your credit score without explanation warrant investigation. If your score dropped significantly and you have not recently applied for new credit or missed any payments, fraud may be the cause. Fraudsters opening accounts in your name and then not paying those accounts can severely damage your credit score. According to the FTC, identity theft is the most common type of fraud complaint, with over 4 million reports filed in 2023.

Other red flags include being denied credit when you expected approval, receiving collection notices for debts you do not recognize, being contacted by debt collectors about accounts you never opened, noticing missing mail or mail arriving late, receiving tax documents for income you did not earn, or seeing unauthorized withdrawals from your bank accounts. Additionally, if you have been notified that your information was involved in a data breach, you should monitor your accounts carefully for suspicious activity.

Practical Takeaway: Review your credit report annually from AnnualCreditReport.com and monitor your bank and credit card statements monthly for unfamiliar transactions or accounts you do not recognize. These simple habits catch most fraud early when damage is limited.

Steps to Place a Fraud Alert on Your Credit Report

Placing a fraud alert requires contacting one of the three major credit reporting agencies directly. You do not need to contact all three—when you contact one agency, it must alert the other two. However, you can choose to contact all three if you prefer additional documentation showing when the alert was placed with each agency.

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To place an initial fraud alert, you can contact Equifax, Experian, or TransUnion by phone, mail, or online. Equifax can be reached at 1-800-525-6285 or online at equifax.com/personal/credit-report-services. Experian's fraud alert line is 1-888-397-3742 or online at experian.com/fraud-alert. TransUnion's number is 1-800-680-7289 or online at transunion.com/fraud-alert. When you contact an agency, they will typically ask for your name, address, date of birth, and Social Security number to verify your identity and locate your credit file.

You may be asked to provide additional identifying information to confirm you are the legitimate account holder. The agency may ask questions only you would know the answers to, such as details about accounts on your credit report or previous addresses. This verification process is designed to prevent fraudsters from placing false alerts on someone else's account. Once verified, the fraud alert is placed on your report within one business day.

If you have already been a victim of identity theft, you can place an extended fraud alert that lasts seven years. For this type of alert, you will need to file a report with the FTC at IdentityTheft.gov and provide a copy of that report to the credit agency. The FTC report documents the theft and serves as proof that you have taken official action. Keep a copy of your FTC report for your records, as you may need it when dealing with creditors or disputing fraudulent accounts.

Practical Takeaway: You can place a fraud alert within minutes by calling one of the three credit agencies. Write down the name of the representative you spoke with, the date, time, and confirmation number for your records.

Understanding Credit Freezes and How They Differ From Fraud Alerts

A credit freeze is a stronger form of protection than a fraud alert. While a fraud alert still allows creditors to access your credit report (they just have to verify your identity first), a credit freeze completely locks your credit file. When your credit is frozen, creditors and lenders cannot access your report at all without your permission, which makes it nearly impossible for fraudsters to open new accounts in your name.

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The trade-off with a credit freeze is that it affects your own ability to get new credit. If you want to apply for a credit card, auto loan, or mortgage, you must temporarily unfreeze your credit, allow the lender to access your report, and then refreeze it afterward. This requires extra steps and planning on your part. For this reason, many people use a fraud alert first and only move to a credit freeze if they have already been a victim of identity theft or believe they face significant fraud risk.

Credit freezes are placed with the same three credit reporting agencies as fraud alerts. You can place a freeze by contacting Equifax, Experian, and TransUnion directly through their websites or by mail. Unlike fraud alerts, you must contact each agency separately to place a freeze on all three reports. When you place a freeze, each agency provides you with a personal identification number (PIN) that you must use to unfreeze your credit later. Store this PIN in a safe place—you will need it if you want to temporarily lift the freeze.

Freezes are permanent until you remove them. You can unfreeze your credit temporarily for a specific time period (usually 30 to 90 days) or permanently at any time by contacting the agencies again and providing your PIN. Some states offer free freezes to all residents, while other states may charge a small fee (typically $5 to $10 per agency). However, freezes are always free for people over age 65 and for victims of identity theft who have filed a report with the FTC.

Practical Takeaway: A fraud alert is appropriate if you want basic protection while keeping your credit available for new accounts. A credit freeze is stronger protection if you do not plan to apply for new credit soon or have already experienced identity theft.

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