What Is a Fraud Alert: Do You Need It and How to Set It Up 

A fraud alert is a message on your credit reports that informs anyone who checks the reports that you may have been a victim of identity theft. Creditors and lenders are then alerted and may take extra steps, such as calling to confirm your identity, before giving you credit. It’s an added layer of protection that actually forces creditors to ensure they’re not dealing with a cyber criminal pretending to be you.

Fraud Alert [Definition]

A credit alert, or fraud alert, is a notice on your credit report that informs credit card companies and other potential creditors that you may have been a target of identity theft or fraud. This serves as a warning to them to be careful when offering credit to you. And it is available for free through the three major credit bureaus, Experian, Equifax and TransUnion.

What Is the Purpose of a Fraud Alert?

A fraud alert is a crucial tool that helps safeguard consumers against identity theft or credit card fraud. It acts as a notification to creditors and lenders that they must verify a consumer’s identity before granting them credit to prevent fraud.

Here are the top benefits of credit alerts:

• Forces creditors to confirm that they are not dealing with an identity thief
• Helps protect against future identity theft
• Helps prevent your credit file from being accessed by cybercriminals

Ultimately, a fraud alert serves to help protect and uphold your identity, which comes with a myriad of benefits.

Types of Alerts

There are two types of fraud alerts: initial alerts which last 90 days and extended alerts which last for seven years. If you were the victim of identity theft and reported it to the Federal Trade Commission, you are eligible for the extended, seven-year alert. If not, you can request the initial, 90-day alert.

Here are the two main types of fraud alerts:

1. 90-day alert — An initial fraud alert is a short-term alert that lasts for 90 days. This is usually placed on a credit file after someone believes they have experienced identity theft–but does not have evidence of it. After 90 days, you will have to request another 90-day alert to continue to help protect against fraud.
2. 7-year or extended alerts — The extended, seven-year alert can only be requested after you have reported an instance of identity theft to the Federal Trade Commission (FTC).

Sometimes you’ll also need to file a report with local law enforcement. With an extended alert, a creditor must contact you in person or through your designated contact method to make sure that you’re actually the person trying to request credit.

How to Set Up Fraud Alerts In 3 Steps

It’s easy to set up fraud alerts on your credit file. To do so, you will need to request a fraud alert with each of the three major credit reporting bureaus, Experian, Equifax and TransUnion. From there, indicate which type of alert you are requesting (90-day or 7-year). And finally, renew your alert upon expiration (or let it expire if you’re no longer concerned about being at heightened risk of identity theft).

Here’s how to set up fraud alerts in three steps:

1. Contact each credit bureau separately

To request an alert, you will need to set that up separately with each of the three major credit reporting bureaus, Equifax, TransUnion and Experian. You can make this fraud alert request online or by phone.

Here’s how to contact the three major credit reporting bureaus:

• Equifax — Via the Equifax website or by phone at 888-836-6351
• Experian — Via the Experian website or by phone at 888-397-3742
• TransUnion — Via the TransUnion website or by phone at 800-680-7289

2. Indicate which type of fraud alert you would like

It is important to specifically request the action you need. A fraud alert lasting for 90 days or seven years will notify creditors that you may be a fraud victim. However, it differs from a credit freeze. With a fraud alert, a new account can still be opened once the creditor verifies and communicates with you.

• 90-day fraud alert — Anyone can request a 90-day alert.
• 7-year fraud alert — If you have reported your identity theft to the FTC, then you can request a seven-year alert.

3. Renew the fraud alert (or let it expire)

If you chose the 90-day fraud alert, then you have the option to renew it after it expires in 90 days.

Additionally, you can request an extended alert that can last for seven years. But to do so, you need to create an identity theft report with the Federal Trade Commission first. Keep in mind that some credit reporting companies or creditors may need a police report before accepting an extended alert.

Bottom Line

If you’re worried about identity theft or fraud, it’s always a good idea to regularly check your credit reports for suspicious activity. Credit Karma makes it easy to get free access to your TransUnion and Equifax credit reports with daily monitoring. With Credit Karma, you can also set up alerts so that you know when your credit report changes. That way, you can take immediate action if something seems off. Get started with Credit Karma today.

Frequently Asked Questions (FAQs)

What’s the difference between a fraud alert and a credit freeze or lock?

A fraud alert tells creditors that you are at heightened risk of identity theft. And therefore, the creditor is required to take extra measures to confirm your identity. A credit freeze and a credit lock both effectively restrict others’ ability to request your credit file. And when your credit report cannot be accessed, new accounts cannot be opened. Learn more about what is a credit freeze or get the complete breakdown of credit lock vs credit freeze.

Will a fraud alert prevent a phishing attack?

A fraud alert won’t necessarily prevent a phishing attack. However, in the instance where you have fallen victim to a phishing scam, it will make it more difficult for cybercriminals to apply for new loans or credit cards in your name. Learn more about phishing and how to help prevent it.

Will a fraud alert affect my credit score?

No, setting up a fraud alert will not affect your credit score. Learn more about your FICO score and what impacts it.