Quick overview

Fraud alerts and credit freezes are low-cost, high-impact actions you can take immediately after you suspect identity theft or learn your personal data has been exposed. A fraud alert adds a warning to your credit report that tells lenders to verify your identity before approving new credit. A credit freeze — sometimes called a security freeze — restricts access to your credit file so most lenders cannot view it and therefore can’t open new accounts in your name.

In my work advising clients on identity-theft responses, I commonly recommend a fraud alert as a fast, short-term step while investigating suspected fraud. If there’s clear evidence of identity theft or a major data breach, a credit freeze provides stronger, long-lasting protection. Both are free under federal law (see FTC and CFPB guidance) and are available from the three national credit reporting agencies: Equifax, Experian, and TransUnion.

(Authoritative guidance: Federal Trade Commission and Consumer Financial Protection Bureau.)

When should you choose a fraud alert vs. a credit freeze?

  • Use a fraud alert when you want quick protection with minimal friction. An initial fraud alert lasts one year and can be placed by contacting just one credit bureau; that bureau is required to notify the other two. An active-duty military alert lasts one year. If you can prove you are a victim of identity theft, you can place an extended fraud alert that lasts seven years. (FTC; CFPB)

  • Choose a credit freeze when you want more robust, longer-term protection. Freezes remain in effect until you lift them (they can be indefinite) and must be requested with each bureau. They are the better option if identity theft has already been confirmed, you were part of a large data breach, or you want to block most attempts to open new accounts.

How to place a fraud alert — step by step

  1. Decide which alert you need: initial (1 year), extended (7 years with proof), or active-duty (1 year for military service members).
  2. Contact any one of the three credit bureaus: Equifax, Experian, or TransUnion. That bureau must notify the other two. Provide your name, current address, Social Security number, date of birth, and a copy of a government ID if asked. You can file online, by phone, or by mail.
  3. After placing the alert, request free copies of your credit reports and review them carefully for unfamiliar accounts or inquiries. You can get free reports at AnnualCreditReport.com (required under the FCRA).
  4. If you find fraud, report it to the FTC at IdentityTheft.gov and consider filing a police report and an identity theft affidavit to support an extended fraud alert or disputes with creditors. (FTC — IdentityTheft.gov)

Practical notes: Placing an initial fraud alert is often the fastest first step because you only need to contact one bureau. However, fraud alerts do not stop credit checks entirely — they only require additional verification steps by lenders.

How to place a credit freeze — step by step

  1. Gather documents: full legal name, Social Security number, date of birth, current address, and a copy of a government-issued ID and proof of address (utility bill or bank statement).
  2. Contact each bureau individually (Equifax, Experian, TransUnion). As of 2018, freezes are free nationwide and can be initiated online, by phone, or by mail. When you freeze your file, each bureau will confirm the freeze and give you a unique PIN or password, or let you create an account to manage the freeze online. Keep this securely.
  3. To temporarily lift (thaw) the freeze for a specific creditor or period, use the PIN/password or the bureau’s online portal to authorize a lift. You can also schedule an automatic expiration for a temporary lift.
  4. Keep records of the freeze confirmation and the PIN/password. If you lose the PIN, you can contact the bureau to reset it, but that may require identity verification and extra time.

Important: A freeze prevents most lenders from accessing your credit report but does not stop companies from reporting fraudulent activity to the bureaus. It also does not affect your ability to use existing credit cards or accounts.

What a freeze or alert will not do (common misconceptions)

  • They won’t remove fraudulent charges on existing accounts. You still must dispute charges with the card issuer or lender.
  • They won’t stop all types of fraud, such as tax refund fraud, medical identity theft, or unemployment benefits fraud — those may require separate steps with the IRS, medical providers, or state agencies.
  • A fraud alert is not a freeze. Alerts ask for verification, while freezes block access.
  • Credit freezes don’t affect credit scores or ongoing relationships with existing creditors.

Credit locks, identity locks, and paid services — how they differ

Credit locks are often offered by credit bureaus or private companies and function similarly to freezes but are governed by contract rather than federal law. Locks can be convenient (managed via an app) and may include monitoring features, but they are not subject to the same legal protections as a freeze. If you want the strongest, regulator-backed protection, use a credit freeze. (CFPB)

Special situations

  • Children: Parents or guardians can place freezes on a minor’s credit file to prevent identity theft. This typically requires proof of guardianship and the child’s identifying information.
  • Active-duty military: The active-duty alert was created to help service members; it lasts one year and can be renewed while deployed.
  • Businesses: Business credit files are separate; freezes and alerts on consumer files don’t cover business credit.

Costs, duration, and how to lift protection

  • Cost: Free. Credit freezes and fraud alerts are free under federal law. (FTC)
  • Duration: Initial fraud alert—1 year; extended fraud alert—7 years with proof of identity theft; credit freezes—indefinite until lifted.
  • Lifting: Use the bureau-specific PIN or online account to lift a freeze temporarily or permanently. For fraud alerts, you may need to contact the bureau again or wait for the alert to expire.

Practical checklist after a data breach or suspected theft

  • Change passwords for financial and email accounts immediately.
  • Place an initial fraud alert if you suspect misuse — contact one bureau.
  • Consider a credit freeze if you know your Social Security number or other key identifiers were exposed.
  • File a report at IdentityTheft.gov, gather documentation, and consider an extended fraud alert if you become a verified victim.
  • Check bank and credit card statements and dispute unauthorized charges promptly.
  • Order and review your free credit reports at AnnualCreditReport.com.

Sample contacts and official resources

Additional reading on FinHelp.io

Final tips from practice

  • Treat the freeze PIN like a bank password: store it in a password manager or a secure location.
  • If you sign up for paid credit-monitoring services, remember these supplement but do not replace freezes or alerts.
  • If you suspect large-scale exposure of your Social Security number, consider both a freeze and monitoring, and consult a qualified attorney for targeted legal help.

Disclaimer: This article is educational only and does not constitute legal or financial advice. For advice tailored to your situation, consult a qualified financial counselor or attorney. Sources: FTC and CFPB guidance on fraud alerts and credit freezes; AnnualCreditReport.com. (Information current to 2025.)