Whether you’ve been a victim of identity theft or you’re just worried that it might have happened to you, you have the legal right, per the FACT Act, to place a fraud alert on your credit file. The Fact Act states that to place a fraud alert on your file you must have “a good faith suspicion that you have or are about to become a victim of fraud or related crime including identity theftâ€.
What is a Fraud Alert
A fraud alert is exactly what it sounds like. It’s a warning of potential fraud that gets added as a note in your credit report. In theory, potential creditors will see this note and contact you before opening credit in your name, thus stopping identity thieves from completing their treacherous work.
However, in practice, a creditor doesn’t have to call you if you have a fraud alert on your file. All he or she needs to do is take an extra step or “reasonable measures” to verify that the applicant is really you. This could take the form of a phone call to the number you have on the fraud alert or the number on the credit application. The creditor could alternately choose to send you an email or could simply deny the application if verifying identity proves too difficult – which is excellent if the applicant isn’t you, but an inconvenience if it is.
Setting up a fraud alert is pretty easy if you just want a 90-day alert. All you have to do is call one or more of the major credit bureaus, TransUnion, Equifax and Experian, and ask to have one placed on your file. Each bureau has a dedicated number for this purpose, which you can find at the end of this article. Once you have an alert set up, you must renew it each time it expires to keep it in working order.
It gets a little trickier if you want the more comprehensive seven-year fraud alert. You’ll have to actually prove that you’ve been a victim of identity theft via a police report, court statement or other official document. This alert will include a statement that you’ve been a victim of identity theft in the past. To request an extended alert you’ll have to write a letter. Calling is not sufficient. Do a quick search and you’ll find several templates that can tell you exactly what terminology to use.
If you decide to remove a fraud alert, you’ll also need to do so in writing. This is an extra precaution in case an identity thief takes it upon him or herself to complete this step for you. However, if you simply have a 90-day alert, it may be worth it to just let it expire on its own.
To request that 90-day alert, use the following contact information:
• TransUnion, Fraud Victim Assistance Department, Phone: 800-680-7289
• Equifax, Consumer Fraud Division, Phone: 800-525-6285 or: 404-885-8000
• Experian, Experian’s National Consumer Assistance, Phone: 888-397-3742
If you don’t want to spend the time and energy, or simply want better protection, then invest in an identity theft protection plan. Though they no longer place fraud alerts on your behalf, they do monitor your credit reports and personal information for signs of identity theft and notify you of any potential risks. You can compare fraud alerts to credit monitoring here.
You may also want to read our reviews on LifeLock, TrustedID and Identity Guard for detailed information on how each service can help protect your identity. Combined with a fraud alert, which we recommend if you meet the spirit of the FACT Act, its a one two punch that should leave you standing and any identity thieves foiled.
Protect yourself today.