A fraud alert is a notice you can put in place that requires lenders to contact you for authorization before a new line of credit can be opened in your name. This can help protect you from identity theft.
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Compared to some other forms of payment, credit is actually quite safe. That’s mainly because the money isn’t actually yours—it’s the lender’s. “If someone looks over my shoulder, copies down my credit card number and uses it to charge $1 million worth of merchandise, by federal law I am not liable for one dime,” explains Frank Abagnale, former credit fraudster turned credit fraud expert. However, credit lines aren’t risk-free. In fact, nearly 400,000 people were victims of credit card fraud in 2021.
Fortunately, you can avoid being a victim in the future by adding a fraud alert to your credit reports today. Learn about the three different types of fraud alerts and which one might be right for you.
How do fraud alerts work?
A fraud alert is a notice you can put in place that requires lenders to contact you for authorization before a new line of credit can be opened in your name to reduce your chances that an unauthorized party is able to access credit in your name. Fraud alerts also require that you be removed from preapproved credit offer lists for things such as credit cards and insurance.
Fraud alerts can last from one to seven years, depending on the type, and they don’t cost you anything. You can request a fraud alert with any of the three credit bureaus online or by phone, and whatever bureau you contact should inform the other two to set a fraud alert. You’ll receive confirmation in a few weeks once the fraud alert has been activated.
Standard fraud alerts
A standard fraud alert lasts for one year from the time it’s implemented. With this type of fraud alert, lenders are supposed to reach out to verify your authorization before a new credit line can be opened. These basic fraud alerts are renewable annually, and you also receive a free copy of your credit report when you place a fraud alert.
Extended fraud alerts
Extended fraud alerts last for seven years and are helpful if you’ve been a victim of credit fraud or identity theft in the past. Obtaining an extended fraud alerts requires you to submit a copy of your identity theft report to the credit bureaus.
Active-duty fraud alerts
Military members are more susceptible to fraud while they’re deployed. Fortunately, by placing an active-duty fraud alert on their credit reports, military members can protect their credit during their service time and reduce their chances of being victims of identity theft.
An active-duty fraud alert remains in effect for one year, although it can be extended beyond that if the individual is still serving. Likewise, it can be manually removed before a year is up if the service member contacts a credit bureau and requests that the fraud alert be lifted. A spouse or another trusted person can be designated as a personal representative and be granted permission to authorize credit activity.
Active-duty fraud alerts also limit the number of preapproved credit card offers military members receive for two years. To place an active-duty fraud alert on their credit reports, service members will need to provide detailed information about themselves, including their military ID number.
Do fraud alerts affect credit?
Placing a fraud alert has no effect on your credit. You won’t be penalized for placing a fraud alert—it simply lets credit bureaus know that you want extra protection on your credit reports. In fact, fraud alerts can actually benefit your credit by preventing unauthorized users from taking out credit lines in your name and potentially causing problems for you.
Are there any downsides to fraud alerts?
The main downsides to fraud alerts come in the form of possible inconveniences when attempting to open new credit lines. For example, if you’re at a store and want to open a new credit card to take advantage of a discount, the process will be slightly delayed in order for the lender to confirm your identity. However, you can help speed it up by keeping your contact information up to date and requesting that lenders contact you via cell phone.
Another issue is that not all creditors will abide by the fraud alert. Some creditors don’t run credit checks and therefore won’t take the extra step of verifying your identity before proceeding with opening the credit line. Be aware that, although fraud alerts are helpful, they aren’t 100 percent reliable.
Fraud alerts vs. credit freezes vs. credit locks
Fraud alerts are one option for protecting your credit, but there are other options too: credit freezes and credit locks. Here are some key differences between these types of protections.
Credit freezes
Credit freezes are federally regulated safeguards on your credit that prevent credit issuers from checking your credit when attempting to extend a new line of credit. A credit freeze restricts lenders from accessing your credit report, and you have to manually lift the freeze in order to obtain any new line of credit. It differs from a fraud alert because it never expires, but credit freezes are also free to use and don’t impact your credit.
Credit locks
The first difference with credit locks is that you can instantly manage credit locks via a website or app. The second difference is that, unlike credit freezes and fraud alerts, credit locks are a paid service. Typically, you pay a monthly fee for the convenience of being able to lock and unlock your account yourself.
How to place and remove a fraud alert
There are three major credit bureaus that handle your credit information: Experian, Equifax and TransUnion. All three credit bureaus communicate and share information, so as we mentioned, you only need to contact one bureau to have a fraud alert placed at all three. However, if you want to be extra sure the fraud alerts have been placed at all bureaus, you can contact each one individually.
| Credit Bureau | Online Information | Phone Information |
| Experian | Experian Fraud Center | 888-397-3743 |
| Equifax | Equifax Customer Service Center | 800-685-1111 |
| TransUnion | TransUnion Fraud Alerts | 888-909-8872 |
Removing a fraud alert before it expires requires you to contact the credit bureaus and make this request. Be prepared to verify your personal information in order to remove the fraud alert.
Protect your credit
Fraud alerts are one of the many tools you have for protecting your credit. By placing a fraud alert, you can rest assured that it will be much harder for anyone to fraudulently access your account and ruin your credit. For more tips related to managing your credit and finances, check out Lexington Law’s credit repair services and financial literacy resources.
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