Identity theft can be prevented by a credit bureau fraud alert. The alert will prevent new credit account applications until the company has verified your identity. This verification is done usually by phone. In some cases, you will need to indicate the date that the alert was issued. However, this alert has some benefits.
Alert for active duty
An active duty credit bureau fraud alert is a free service that service members can get to protect themselves from fraud and identity theft. It stops your name being listed on pre-approved cards for a year, and can be renewed for as long you serve. TransUnion, Equifax, or Experian can provide this service. You can call or write to place a fraudulent alert. You can request an extended alert to make your alert last for longer. This will prevent the name from appearing on pre-screened offers and keep it there for two years.
After you request an alert, notify the two national credit reporting agencies. Before an alert for active duty is placed, you must show proof of identity. This could include your name, address and Social Security number. Your contact information must be updated before the alert expires. Your name will be retained on pre-screen marketing lists up to two years after expiry if you do not update your contact information.
Alert for fraud detection
An initial fraud alert is a warning on your credit report that will prevent identity thieves from opening new accounts in your name. This alert is stored on your credit file for 90 calendar days. Some extend the validity of the alert to a full year. If you suspect identity theft or have lost or stolen money, or if someone has phished you, this alert may be requested. The alert gives you the right to request a free copy your credit report from each one of the four major consumer reports agencies.
This alert signifies that lenders are watching you closely and may need to verify your identity before granting you credit. These alerts can often slow down loan processing. Credit monitoring might be an option.
Dispute a fraud alert
You can always dispute a credit bureau alert if you receive it. This can be done by writing to the agency sending the alert. The agency will then erase the incorrect information and mail a notice for all creditor businesses that received the notice. In the dispute, include your name as well as your telephone number.
A fraud alarm is a notification to creditors of someone trying to use your name to make purchases. This does not preclude creditors from obtaining your credit file, or issuing credit cards. It is important that you understand that a fraud alert can only be temporary.
Removing a fraud alert
It's very easy to remove a fraud alert from your credit bureau. You can do it online, over the phone or by postal mail. Within a few days, you will receive the alert. You can choose to allow the alert to expire if you don't want to remove it. A fraud alert will automatically expire after one year for an initial alert and seven years for an extended alert.
Contact the credit bureaus directly if you want to remove your alert faster. Most agencies will require you to provide proof of your identity in order to remove a fraud alert earlier.