Definition
A fraud alert or security alert is a notation that a consumer may place on their credit report that requires lenders to verify the identity of applicants to prevent the fraudulent opening of accounts by identity thieves.
Analysis
Fraud alerts are free to set up. They may be placed by contacting credit bureaus and requesting a fraud alert or security alert.
An initial fraud alert may be placed if you believe that unauthorized account activity may have occurred. This listing will last for 90 days, which could protect you from any immediate threats.
If you have reason to believe that a long-term security risk exists, then you may file an identity theft report with your local law enforcement agency. You may request a copy of that report and supply it to credit bureaus so that an extended fraud victim alert may be placed on your credit report. Known as a victim statement, this extended alert will remain for 7 years.
Military servicemembers may include an active duty alert on their credit reports for free. These alerts last for 1 year, and may be extended with an additional request. This can protect servicemembers from becoming identity theft victims while they are deployed or otherwise unable to monitor their credit report activity or mailings.
