Fraud Alert-A Little Inconvenience Is Better Than A Lifetime of Misery!

So, the "Lifetime of misery" comment peaked your interest, but what you're really interested in knowing is, what "little inconvenience" may you have to endure to avoid the misery?  A little inconvenience to me is waiting 30 minutes at a doctor's office to be seen instead of 15.  If waiting 15 minutes is a struggle for you, then this may get painful.

Read further to find out how a fraud alert may help you.

Fraud Alert-What Is It?

A fraud alert is a request from you to the credit bureaus to place an alert on your account.  You only have to contact one, as they are responsible for notifying the other two bureaus of your request.  This alert lets the creditor know that you have requested to be contacted before any credit is issued. 

Since the creditor is aware of the alert, they may contact you personally.  This could cause some inconvenience.  For instance, if you've listed only your work number as your contact number, then the lender/creditor would not be able to reach you until you returned to work the following day.  As mentioned before, being inconvenienced by this process is much better than having your credit ruined or identity stolen.

There are three types of alerts:                 

• Initial Alert-this
• Extended
• Military 

•Initial alert. If you get a notice of a security breach, this should be your first step. The alert will remain on your credit reports for 90 days. You only have to contact one of the three major credit reporting agencies to place an initial alert (see box); it will notify the other two.

You'll be asked to provide a phone number where you can be reached so creditors can confirm your identity before opening a new account. While the alert is on your file, you probably won't be able to get instant credit.

When you file an alert, you'll also be eligible for a free credit report from each of the three credit reporting agencies. However, you may have to request it.

•Extended fraud alert. This alert remains on your credit file for seven years.

To obtain an extended fraud alert, you'll be asked to provide evidence you've been victimized, such as a police report. You can request that the fraud alert be removed before the seven-year period expires.  However, you'll need to make that request in writing and provide information to verify your identity.  Verifying your identity helps to insure that you are the one removing the alert, not a criminal trying to get around the system.

•Military fraud alert. This service is available to members of the military who are on active duty. It's designed to prevent thieves from opening accounts in their names while they're overseas.

*Active duty personnel don't have to prove they've been a victim of identity theft to request a military fraud alert. *

Additional Options Available?

Since you cannot predict when a thief may use your identity, a 90-day alert may not be long enough to protect you and without any proof of victimization, you can't get an extended alert. So, what, if any are your other available options?

•A credit freeze. A freeze allows you to block access to your credit report and score, and prevents identity thieves from opening new accounts in your name.

Because a credit freeze also prevents legitimate lenders from reviewing your credit report without your consent, it may provide more protection than you actually need.  It's most effective when you're dealing with an aggressive identity thief, or fear that someone, an angry ex-spouse, is trying to ruin your credit.

•Credit monitoring. All three credit bureaus offer credit-monitoring services. The services typically notify you when there has been a change in your credit file, such as a new account or credit inquiry.  For more information on credit monitoring services, you may want to read my "Credit Monitoring Services" guide.

If you're interested in a low-cost service that monitors all three credit reports, then you should visit Credit Protect. 

Conclusion:

A fraud alert is only available after you've already become a victim of identity theft, or have strong suspicions that you will be (unless you are a member or the military).  The only way to keep your identity safe is to be careful with your identifying information and review your credit report often.

You may want to read the following related information:

Tips To Prevent Online Identity Theft
Tips To Prevent Offline Identity Theft