Fraud Alert vs. Extended Fraud Alert |
By Sybria White on November 19, 2010
.jpg.aspx?width=75&height=75) Identity theft is a legitimate fear of the information age. New technologies to make our lives easier come with a price. Unfortunately, this price for some, is the theft of personal information that put your financial accounts at risk. A fraud alert is a preventive measure taken to avoid identity theft. Fraud alerts can be placed on your credit report. This article will discuss the two types of fraud alert, and how to use fraud alerts to better protect your identity.
As mentioned above, there are two types of identity theft. The first type of identity theft, called an initial alert lasts approximately 90 days on your credit report1. This alert can be placed on a credit report if you suspect identity theft or if you have been a victim of identity theft1. An example of when you may request a fraud alert is if you have lost or someone has stolen your wallet1. Another instance in which your identity is at risk is following a “phishing” scam1. Phishing is a criminal act that involves getting access to personal information like usernames, passwords or credit card information by posing as legitimate company2. Following events like these, it is advisable to request an initial fraud alert. This alert prevents identity thieves from opening a new account in your name by requiring potential creditors to take additional measures to verify your identity. An added benefit of a fraud alert is that you also are entitled to a free credit report to monitor your credit more closely.
The second kind of fraud alert is called an extended fraud alert1. This type of alert typically remains on your credit report for 7 years1. This option is for those who have been a confirmed victim of identity theft. This can be achieved with an identity theft report. The sources section of this article will provide a link to access sufficient documentation to obtain an extended fraud alert. With an extended fraud alert, potential creditors must meet with you in person or contact you directly before issuing any new credit. Additionally, you are entitled to two free credit reports within 12 months from the time you obtain an extended fraud alert, to monitor your credit more closely.
Placing both types of fraud alerts on your credit report, require significant proof of identity. This proof may include a social security number, name, address, and other personal information.
Sources:
1 http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html#Whatisafraudalert
2 http://en.wikipedia.org/wiki/Phishing
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