How Do Fraud Alerts Work?

Placing a fraud alert is a straightforward and free process. You only need to contact one of the three major credit bureaus (Equifax, Experian, or TransUnion). Under the Fair Credit Reporting Act (FCRA), the bureau you contact is legally required to notify the other two, ensuring the alert appears on all three of your credit reports.

When a lender or creditor pulls your credit file to evaluate an application, the fraud alert notifies them to take extra steps to verify your identity. This verification is typically a phone call to a number you provide. This simple step can stop a criminal from successfully opening an account in your name.

Types of Fraud Alerts Explained

There are three types of fraud alerts, each designed for a specific situation:

  • Initial Fraud Alert: If you suspect you might be a victim of identity theft—for instance, if you lost your wallet or were notified of a data breach—you can place an initial fraud alert. It lasts for one year and can be renewed. Placing this alert also entitles you to a free copy of your credit report from each bureau.
  • Extended Fraud Alert: This alert is for confirmed victims of identity theft and lasts for seven years. To qualify, you must submit an Identity Theft Report, which you can create at IdentityTheft.gov. An extended alert requires creditors to contact you directly before issuing any new credit. It also removes your name from prescreened marketing lists for five years.
  • Active-Duty Military Alert: This alert is available for service members on active duty. It lasts for one year (renewable) and requires lenders to verify your identity. As an added protection, it also removes your name from prescreened credit offer lists for two years.

Fraud Alert vs. Credit Freeze: What’s the Difference?

A fraud alert and a credit freeze are often confused, but they function very differently.

  • A fraud alert acts as a red flag, signaling lenders to verify your identity before approving new credit. You can still apply for and receive credit without any extra steps on your part, though the lender’s verification process might add a slight delay.
  • A credit freeze is more restrictive. It locks down your credit file, preventing most third parties from accessing it to open new accounts. While it offers stronger protection, you must temporarily “thaw” the freeze yourself before applying for a loan, credit card, or even some utilities.

How to Place or Remove a Fraud Alert

You can place a fraud alert online or by phone. Remember, you only need to contact one of the following bureaus:

  • Equifax: Place an alert online or by calling 1-800-525-6285.
  • Experian: Visit the Experian Fraud Alert Center or call 1-888-397-3742.
  • TransUnion: Set up an alert through their online service center or by calling 1-800-680-7289.

An initial or active-duty alert expires automatically after one year unless renewed. To remove an alert early, you must contact each bureau individually. Importantly, placing or removing a fraud alert has no impact on your credit score.

For more comprehensive help and to create a recovery plan if you are a victim of identity theft, visit IdentityTheft.gov, the federal government’s official resource.