Fraud Alerts Definition
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.