Fraud Alert: Process, Types, Credit Reports

What is a Fraud Alert?

Fraud Alerts are warnings to potential creditors about a customer's identity theft. The customer's identity theft alerts the potential creditors to take extra steps in verifying the identity of the customer. Verifying the identity of the customer is a crucial step to recognizing whether the credit application is from the person who really owns the account or from a fraudster. A fraudster can be successful in opening credit accounts or taking out loans without fraud alerts. Fraud alerts can also be placed if a customer thinks of possible identity theft. An identity thief uses stolen personal data to defraud financial institutions. Scammers often target American consumers through various fraudulent schemes. The Office of Inspector General investigates scams that affect consumers nationwide. The OIG works with law enforcement to prosecute scammers who use telephone and email to defraud victims.

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Fraud Alerts

How does a Fraud Alerts Work?

Fraud Alerts work by making it difficult for criminals to open a new credit account under the customer's name. A new credit account under the customer's name can only be issued upon verification of identity. Verification of identity is done by the business or creditor that will issue a new credit account. A new credit account cannot be pursued automatically with fraud alerts. Please verify your telephone number with lenders before they process applications. Don't click on suspicious email links that claim to be from your lender. A thief may use a fake scheme to obtain your credit score information.

Fraud alerts add another layer of security to the loan and credit card application process. The layer of security prevents fraudsters from opening credit accounts. Opening credit accounts usually starts with the creditors doing a credit check. A credit check is a process of accessing customers' credit files from the three credit bureaus. The three credit bureaus, Equifax, Experian, and TransUnion, pause the credit check in the presence of fraud alerts. Fraud alerts also make the three credit bureaus instruct the creditors to do an identity verification process before proceeding with the credit check. Telephone scams like fraudulent calls from fake lenders are common in the United States. The Department of Justice prosecutes scam operations that target united consumers across multiple states.

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What are the Type Of Fraud Alerts On Credit Reports?

The types of fraud alerts on credit reports are the following:

An Initial Fraud Alert is a warning placed for 90 days and lasts for one year on the credit report. The credit report customer who placed this fraud alert is entitled to one free credit report from each of the three credit bureaus. The three credit bureaus will put an initial fraud alert on the credit report if the customer believes in potential identity theft.

An Extended Fraud Alert is a warning placed that lasts for seven years on the credit report. The credit report with this alert will remove the name of the customer from the marketing lists. The marketing lists include pre-approved credit card offers for five years. Pre-approved credit card offer list removes the name of the customer because of actual identity theft. The actual identity theft victim is entitled to receive two free credit reports from each of the three credit bureaus within 12 months upon the receipt of the extended fraud alert. The extended fraud alert requires the customer to file a Federal Trade Commission (FTC) report or a police report. Know that you can freeze your credit to help prevent further fraudulent activity. The Inspector General recommends that consumers verify all requests for personal data at this time.

An Active Duty Alert is a warning placed and lasts for a year on the credit report. The credit report customer is a member of the military who is on active duty. The active duty alert removes the name of the customer from marketing lists. The marketing lists consist of pre-approved credit card offers for two years. Privacy protection laws help consumers fight back against scam attempts
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How to get a Fraud Alerts with Equifax

To request an initial one-year fraud alert or an active duty alert on Equifax, a customer needs to create an online myEquifax account. The myEquifax account registration requires the following information:

  • First and Last Name
  • Date of Birth
  • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  • Mobile Number
  • Current Address

The myEquifax account will display the status of the requested initial fraud alert or active duty alert by the customer. The customer can also call Equifax or send a request by mail using the downloadable fraud alert request form. The fraud alert request form for the extended fraud alert can also be downloaded and to be submitted by mail together with the required documents for each category in photocopy form:

  • Identity
    • Social Security Card
    • Pay stub with social security number
    • W2 or 1099 form
  • Address
    • Driver’s License
    • Rental lease agreement/house deed
    • Pay stub with address
    • Utility bills such as gas, electric, water, cable, or residential phone bill

    • How to get a Fraud Alerts with Experian

    To request a fraud alert in Experian, the customer can access Experian's Fraud Center. The Experian's Fraud Center is an online resource for requesting any of the three types of fraud alerts. The three types of fraud alerts require the customer to accomplish an online form for initial fraud and active duty alerts using the following information:
    ‍

  • Full name, including the middle name
  • Address with ZIP Code
  • SSN
  • Date of Birth
  • E-mail Address

    • For extended fraud alerts, a letter is required containing the same information above, plus the additional photocopy of one document per each category, such as:
    ‍

  • Government Issued Identification Card
    • Driver’s License
    • State ID Card
  • Document with Name, Address, and Recent Date of Issue
    • Bank Statement
    • Utility Bill
    • Insurance Statement

    • Documents with name, address, and recent date of issue that are not accepted by Experian are:
    ‍

  • Credit Card Statements
  • Voided Checks
  • Lease Agreements
  • Magazine Subscriptions
  • Postal Service

    • How to get a Fraud Alert with Transunion

    To request a fraud alert on TransUnion, the customer needs to create a free TransUnion Service Center account. The TransUnion service center account registration requires the following personal details:
    ‍

  • First and Last Name
  • Address with ZIP Code
  • E-mail Address
  • Mobile Number
  • Date of Birth
  • Last four digits of the SSN

    • After the fraud alert has been placed, the customer will be notified via e-mail by TransUnion. TransUnion will also notify Equifax and Experian about the fraud alert. Fraud alerts can also be placed by phone or mail, with the exception of the extended fraud alert.

    Extended fraud alerts can only be requested via mail because of the needed documentation. The documentation will prove the identity of the customer. The customer needs to provide the following:
    ‍

    • Full Name
    • Current Address with City, State, and Zip Code
    • Former Address with City, State, and Zip Code
    • SSN
    • Date of Birth
    • Phone Number

    For the documentation, customers need to provide one for proof of identity and two for the address:
    ‍

  • Identity
    • Social Security Card
    • Letter from Social Security Administration
    • Military ID
    • Medicaid or Medicare Card
  • Address
    • Driver’s License
    • Utility Bill
    • Bank or credit union statement
    • Canceled Check
    • Signed homeless shelter letter
    • Stamped post office box receipt
    • Government-issued ID
    • State ID card
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    How to Place a Fraud Alerts On Credit Reports

    iSoftpull’s Identity Risk Suite offers fraud alert products from the credit bureaus that can easily be appended to a credit report. Learn more about adding Fraud Alerts to credit reports by checking out iSoftpull’s Identity Risk Suite here.

    How Long Does A Fraud Alert Usually Appear On Your Credit Report?

    The Fraud alert on the credit report lasts depending on the type of fraud alert:
    ‍

    • Initial fraud alerts last for a year and can be renewed many times in order to keep them active.
    • Extended fraud alerts last for seven years. Within seven years, they can be removed or suspended upon request. The request involves notifying each of the three credit bureaus separately of the removal of the extended fraud alert. Extended fraud alerts can be renewed upon expiration. Upon expiration, the customer needs to resubmit the eligibility documents. Eligibility documents include the FTC report or police report.
    • Active duty alerts last for one year unless removal is requested. Removal can be done by phone or mail at any of the three credit bureaus. The three credit bureaus may require a Power of Attorney for the personal representative of an active service member of the U.S. military. An active service member of the U.S. military can renew the active duty alert if their deployment is continuing.

    What is an Extended Fraud Alert?

    The Extended Fraud Alert is available for the customer with a confirmed identity theft case. For a confirmed identity theft case, the customer is required to file FTC identity theft reports or police reports. The FTC identity theft reports or police reports place the credit reports with extended fraud alerts.

    Extended fraud alerts add another layer of security from people who will try to open accounts under the names of the identity theft victims. Identity theft victims’ personal credentials can be used for borrowing money or opening credit card accounts.

    What is an Active Duty Fraud Alert?

    The Active Duty Fraud Alert is available for a customer who is an active duty service member. An active duty service member is given an extra layer of protection from people who will open new credit accounts under his or her name. For new credit accounts, businesses are notified that the owner is a member of the U.S. military currently on active duty. A member of the U.S. military currently on active duty is verified first through the creditor before getting approved under the active duty alert.

    Active duty alert allows an active duty service member to acquire free electronic credit monitoring. Electronic credit monitoring can detect problems regarding identity theft.

    For more information contact the professionals at iSoftpull today.

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