You can protect yourself from identity theft by using a credit bureau alert. The alert will prevent new credit account applications until the company has verified your identity. This verification usually takes place by phone. It may also require that you state the date when the fraud alert was placed. However, there are some benefits to the alert.
Alert for active duty
A credit bureau fraud alert for active duty service members is a free service they can use to protect themselves against 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, Experian and Equifax all offer this service. You can also place a fraud alarm by mail or phone. For two years, an extended alert can be requested to prolong the alert. It will stop the name appearing on pre-screened offer lists.
You must notify the other national credit reporting agencies once you have requested an alert. You must provide proof of identity before an active duty alert is placed, which might include your name, address, and Social Security number. You should also update your contact information before an alert expires. If you don't do so, your name will remain on pre-screen marketing lists for two years.
Alert for initial fraud
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 stays on your credit file for 90 days, and some extend 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. This alert will allow you to receive a free copy from each of four major consumer reporting agency credit reports.
This alert is a sign that lenders are monitoring your credit application and will need to verify you identity. These alerts can often slow down loan processing. Credit monitoring is an alternative.
Dispute a fraud alert
It is your right and obligation to dispute any alert from the credit bureau. The agency that sent the alert can be contacted to resolve the matter. The agency will then remove the incorrect information and send a notice to creditor companies who received the alert. Make sure to include your name and telephone number with the dispute.
A fraud alert informs creditors that someone may be trying to use you identity to make purchase. However, it does not prevent the creditors from obtaining your credit file or issuing new lines of credit. It is important for you to know that a fraud alert only lasts for a short time.
Removing a Fraud Alert
It is easy to remove a credit bureau fraud warning. You can complete the process online, over the phone, or by mail. You should receive your alert within days of completing the process. You can choose to allow the alert to expire if you don't want to remove it. A fraud alert will automatically expire one year after an initial alert, and seven years after an extended alert.
If you need to remove an alert sooner, contact your credit bureaus. Most agencies will require you to provide proof of your identity in order to remove a fraud alert earlier.