In this article:
Identity theft and fraud protection for your finances, personal info, and devices.
Hold On To Your Money (And Your Identity)
Kevin Lee — a former employee of an agency under the Department of Defense (DOD) — first began applying for fraudulent loans in September 2019 [*].
By September 2020, he had used the stolen identities of 37 individuals at 16 financial institutions and fleeced his victims out of nearly $250,000 via bank and loan frauds.
But while some of those fraud victims had credit monitoring services in place and avoided identity theft, others weren’t so lucky.
One of the easiest ways to protect your credit report from fraudsters opening new accounts is by implementing a fraud alert.
In this guide, we’ll cover fraud alerts, which type is best for you, and how to set one up.
What Is a Fraud Alert? How Does It Work?
A fraud alert is a protective measure noted on your credit file that requests lenders to verify your identity before issuing new credit. It can help stop identity theft — like when fraudsters try to apply for credit cards in your name.
How does a fraud alert work?
Upon request, all three major credit bureaus (Equifax, Experian, and TransUnion) place a fraud alert on your credit report. This means lenders will confirm that you’ve approved a credit application before they move forward. Typically, the lender will call you and have you verify your identity.
It’s important to note that a fraud alert doesn’t have legal teeth, so to speak. It doesn’t limit who can see your report; and it only asks — but doesn’t require — that lenders contact you. But because lenders are usually liable for fraudulent credit accounts, they’re generally willing to take this extra step.
Who is a fraud alert for?
Anyone can set up an initial fraud alert, whether they’ve been a victim of identity theft or not. It lasts for one year and can help protect you against identity theft and scams.
There are also special types of fraud alerts designed for identity theft victims and military personnel.
How much does a fraud alert cost?
It’s free to set up a fraud alert. Previously, credit bureaus charged a small fee for this service; but a new 2018 law mandated better consumer credit protections, which included removing these small fees.[*]
Will a fraud alert affect your credit score?
No, a fraud alert has zero impact on your credit score. Lenders can see that you have a fraud alert, but it’s common and won’t increase or decrease your eligibility for credit.
Know Your Protection Options: Types of Fraud Alerts
There are three types of fraud alerts: initial, extended, and active duty. All three offer the same type of protection but have different eligibility requirements and last for different periods of time.
1. Initial fraud alert
Anyone is eligible for an initial fraud alert. You don’t need any special documentation to set it up — just proof of your identity. An initial fraud alert lasts for one year, and you can renew it indefinitely. It doesn’t offer extra benefits, but it’s a good place to start if you aren’t eligible for an extended or active duty alert.
2. Extended fraud alert
If you’re a victim of identity theft, you can request an extended fraud alert. You’ll need to prove the identity theft by submitting an official report (we’ll explain how to get one in the next section). An extended fraud alert lasts for seven years and can be renewed indefinitely.
Extended alerts offer two additional benefits to lower your risk of identity theft.
- First, you are removed from pre-screened marketing lists for five years.
- And second, you receive an extra annual free credit report from each major credit bureau, for a total of six. (Everyone has the right to one free copy per bureau per year.)
3. Active duty alert
An active duty fraud alert, as the name suggests, is for military service members serving remote deployment. You’ll need to prove your eligibility with your military ID.
An active duty fraud alert lasts for one year, and you can renew it as long as you’re deployed. The active duty fraud alert removes you from pre-screened offers for two years.
To File for a Fraud Alert, Do This
Setting up a fraud alert shouldn’t take more than 30 minutes. If you set it up online or by phone, it goes into effect almost immediately. You can also apply by mail, though it may take a few days to go into effect.
You only need to contact one of the three credit bureaus, which will contact the other two. To set up the alert, you’ll need to answer security questions or present documents proving your identity.
Each bureau has slightly different requirements — but they generally ask for a total of two documents, from one or more of these categories:
- Government-issued ID, like a passport or driver’s license
- Proof of your Social Security number (SSN), such as your Social Security card, a previous tax return, or an employer tax form (like a 1099 or W2)
- Proof of address, such as a utility bill
If you’re applying for an active duty alert, you’ll need to share your military ID. And if you’re applying for an extended fraud alert, you’ll need to provide an identity theft report proving you’re a victim of fraud.
- You can get an official report from the Federal Trade Commission (FTC) at IdentityTheft.gov.
- You can also file a police report with local law enforcement. We recommend filing both, even if the bureau only requires one.
Once you’ve gathered everything you need, you can request the fraud alert using the contact information below:
- Equifax: 800-685-1111
- Experian: 888-EXPERIAN (888-397-3742)
- TransUnion: 888-909-8872
To Remove a Fraud Alert, Do This
Generally, we don’t recommend removing a fraud alert from your credit file. If you don’t feel you need the alert, you can just wait until it expires automatically.
But if you’re frustrated with phone calls every time you request credit (or just don’t want the alert anymore), you can remove it by following the same steps you took to set up the alert.
You can request removal online, by phone, or by mail. The alert will be removed almost immediately via online or phone requests, and take up to a few days if by mail.
Call the number or visit the website of a credit reporting agency and request to remove the alert. You’ll also need to prove your identity just as you did to set up the alert.
Related: How To Tell If a Check Is Fake (With Examples) →
Other Ways To Protect Your Identity
Setting up a fraud alert can help protect you from identity theft, but it’s only one tool of many.
- Claim your “my Social Security” account. One way to protect your SSN is to claim your my Social Security account. This gives you access to your Social Security data and can help you spot suspicious activity.
- Protect your tax return. Identity thieves can file fraudulent tax returns in your name and collect your refund. Protect your return by filing as early as possible, and by setting up an Identity Protection PIN (IP PIN). It’s like a password for your taxes.
- See if a credit freeze might be right for you. A credit freeze, also known as a security freeze, seals your credit report completely. It offers better protection than a fraud alert, but requires that you remove the freeze any time you apply for credit. You’ll also need to set up the freeze individually with all three credit reporting companies.
- Review your credit report. One of the best ways to see if thieves have opened new credit accounts in your name is to review your credit report. By law, you’re allowed one free copy of your credit report from each bureau every year. (If you’ve set up an extended fraud alert, you’re eligible for two free copies a year.) You can see your reports at AnnualCreditReport.com.
- Sign up for credit monitoring. An alternative to reviewing your credit report manually is to sign up for credit monitoring with a company like Identity Guard. This service scans your credit report for any suspicious activity and sends you alerts automatically.
- Check for fraudulent transactions. It’s a good idea to review your credit card and bank statements each month for any unfamiliar transactions. Even small purchases can be red flags — thieves often test stolen cards with small amounts first. Also consider setting up transaction alerts via SMS or email, if your financial institution allows it.
- Close any inactive bank accounts. Accounts you’re not using can be targets for credit fraud. Close inactive bank, investment, and credit accounts.
- Scan the Dark Web for compromised accounts and passwords. Each year, cyber thieves steal the information of millions of innocent users. You can scan the Dark Web to see if your information has been exposed in a data breach.
- Update all your passwords and add 2FA. Use long passwords (at least 12 characters), and make sure they’re different on every website. You can use a password manager to keep track of them. We also recommend two-factor authentication (2FA). When possible, choose authentication through an app instead of through text messages, as your phone number may be more vulnerable than you think.
- Scan your devices for malware and set up antivirus. Even savvy internet users can fall prey to malware attacks. Use a strong antivirus software that scans and removes viruses before they pose a threat.
- Replace lost or stolen government-issued IDs. If you’ve lost your wallet or purse, or know that it’s been stolen, take steps as soon as possible to replace your IDs to invalidate the missing copies. Identifying documents are among the most valuable commodities on the black market.
- Protect your family from identity theft. Consider signing up for identity theft protection to safeguard your family against fraud. Identity Guard monitors your personal information, registered accounts, credit, and more to detect fraudulent activity.
Identity Theft Is a Problem That Isn’t Going Away
About 50% of Americans were victims of financial identity theft in the last two years; their combined losses are in the billions [*]. Like most people, you probably think identity theft could never happen to you — until it does.
But with the right safeguards — like fraud alerts and identity theft protection — you can rest easy knowing that your financial information is not out there for the taking.
