Identity theft can be prevented by a credit bureau fraud alert. An alert will prevent you from applying for new credit accounts until you have been verified by the company that you are who you claim to be. This verification is done usually by phone. In some cases, you will need to indicate the date that the alert was issued. The alert comes with certain benefits.
Alert for active duty
The service member can request a free credit bureau fraud warning to help them protect themselves from identity theft or fraud. It stops your name being listed on pre-approved cards for a year, and can be renewed for as long you serve. This service is available from TransUnion, Equifax, and Experian. You can send a fraud alert via mail or phone. To make the alert last longer, request an extended alert, which will prevent the name from showing up on pre-screened offers for two years.
Once you have requested an alert, you should notify the other two national credit reporting agencies. You must provide proof of identity before an active duty alert is placed, which might include your name, address, and Social Security number. It is also important to keep your contact information current before the alert expires. If you don't do so, your name will remain on pre-screen marketing lists for two years.
Initial fraud alert
An initial fraud alert is a warning on your credit report that will prevent identity thieves from opening new accounts in your name. The alert is kept on your credit file for 90-days, while others can last up to one year. This alert can be requested if you suspect identity fraud, have lost or stolen your wallet, or were the victim of phishing scams. 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 slow down the loan process. Credit monitoring is an alternative.
Dispute a fraud alert
You have the right to contest any credit bureau fraud alerts you receive. Write to the agency who sent you the alert. The agency will then delete the inaccurate information and mail a notice to all creditor companies that received the alert. Include your name and phone number in the dispute.
A fraud alert notifies creditors that someone is trying your identity to purchase goods. This does not preclude creditors from obtaining your credit file, or issuing credit cards. It is important for you to know that a fraud alert only lasts for a short time.
Removing a fraud alert
Removing a credit bureau fraud alert is a fairly simple process. You can do it online, over the phone or by postal mail. The alert should be removed within days after you've completed the process. If you do NOT wish to remove the alert you can opt to let it expire. A fraud alert will automatically expire after one year for an initial alert and seven years for an extended alert.
You can contact the credit bureaus to request a removal of your alert sooner. For fraud alerts to be removed earlier, agencies may require that you provide proof of identity.