Fraud alerts and security freezes are often mentioned together, but they do different jobs. Before you choose a fraud alert, run through these questions so you pick the right level of protection.
What does a fraud alert actually do? It tells potential lenders that you may be a victim of identity theft, so they should take extra steps to verify your identity before opening a new account. Unlike a freeze, it does not block access to your file — it adds a warning flag.
Which type do I need? There are three main types. An initial fraud alert lasts one year and is available to anyone who suspects fraud. An extended fraud alert lasts seven years but requires an identity theft report, such as the one from IdentityTheft.gov. Active-duty military members can place a one-year active-duty alert while deployed.
Do I have to contact all three bureaus? No — and this is a key difference from freezes. When you place a fraud alert with one bureau, that bureau is required to notify the other two. One call covers all three files.
Will it stop legitimate applications? It can slow them down. A lender seeing the alert should contact you to verify your identity before approving credit, which may add a step or a phone call to your application. Most people find the trade-off worthwhile during a fraud scare.
Does it cost anything? Fraud alerts are free, and you can renew an initial alert when it expires if you still have concerns.
Can I use both a freeze and a fraud alert? Yes. Many identity theft victims place a freeze for strong protection and add a fraud alert as a second signal to lenders. The two tools work well together, and neither affects your credit score.
Join the conversation
Load Facebook comments to read and reply using your Facebook account.