in-the-wallet
Fact and Myth on Fraud Alerts
Fraud alerts are getting some buzz lately as an identity theft prevention strategy. Consumers who are relying on this as a means of protection should be warned that they can still become victims of identity theft. What does a fraud alert do? Well, it signals to a credit grantor that they should double check that you are in fact you, often by calling you at your home. Anyone, even if not a victim of identity theft, is able to place a 90 day fraud alert on his or her credit records free of charge.
It’s important to keep in mind though, that a fraud alert does not 100% prevent thieves from still tricking the credit grantor, nor does it prevent thieves from committing fraud on your existing accounts. If you’re super-concerned about thieves trying to open accounts in your name, you may want to consider a credit freeze as a means of protecting yourself. This completely prevents any new credit accounts from being opened. You can still use your active credit accounts, such as credit cards, but cannot open a new account until you unfreeze your credit. Freezing and unfreezing your credit if you have not been a victim of fraud can get pricey though, depending on which state you live in, so it’s a good idea to carefully consider this option before taking any action.
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