Fraud Alert And It's Benefits
Fraud alert is one among the many last-ditch efforts to prevent identity theft. This is particularly useful when you have a strong suspicion that somebody else has access to your personal information like social security number and passwords or when you have found that somebody has actually faked your identity.
If you opt for fraud alert, it will prevent further damage.
One has to understand that this is not a foolproof option and you have to make sure that you have opted for other services like credit freeze for preventing identity theft. If you are too busy or are not interested in mundane things, it is better to opt for the full identity protection service from a trustworthy agency.
The second type of fraud alert is the extended alert, which is valid for seven years. This option is usually reserved for victims of identity theft. You have to submit proof of identity theft and an identity theft report to avail this type of fraud alert.
One has to understand that this is not a foolproof option and you have to make sure that you have opted for other services like credit freeze for preventing identity theft. If you are too busy or are not interested in mundane things, it is better to opt for the full identity protection service from a trustworthy agency.
What Is Fraud Alert?
You can request the credit rating agencies, namely, Equifax, Experian, and TransUnion, to contact you over the telephone or in person before providing your credit history report to a financial institution. You have to submit an application to the agencies and follow their instructions to activate a fraud alert against your name. This can prevent a person from faking your identity to get a loan or credit, even if the person manages to obtain your critical personal information. All reputable banks and financial institutions in the country seek credit history reports from the credit rating agencies before issuing loans or credit. In short, fraud alert will allow you to detect and block the attempt of a fraudster to avail loan or credit faking your identity.Types Of Fraud Alert
The commonly used option is the initial alert. This is valid only for 90 days. If you want to continue the alert, you have to renew the option. If you are too lazy or forgetful to renew it after every 90 days, you may seek the service of an identity protection agency. It will automatically renew your initial alert with all the three credit-rating agencies after every 90 days.The second type of fraud alert is the extended alert, which is valid for seven years. This option is usually reserved for victims of identity theft. You have to submit proof of identity theft and an identity theft report to avail this type of fraud alert.
