What is a Fraud Alert?
A fraud alert is a message that credit issuers receive when someone applies for new credit in your name. The message tells creditors that there is possible fraud associated with the account and instructs them to call you before issuing new credit in your name. When you call the credit bureau fraud line, you will be asked for identifying information and will be given the opportunity to enter a phone number for creditors to call. Detailed information on requesting such an alert is located on the resources page.
A. A fraud alert is a message that credit issuers receive when someone applies for new credit in your name. The message tells creditors that there is possible fraud associated with the account and gives them a phone number to call (yours) before issuing new credit. When you call the credit bureau fraud line, you will be asked for identifying information and will be given the opportunity to enter a phone number for creditors to call. Detailed information on requesting such an alert is located near the end of the Resources page of this website.
Fraud alerts are sometimes referred to as “Security Alerts”. A Fraud Alert is placed in your credit file by consumer reporting agencies (credit bureaus). The goal of a Fraud Alert is to notify creditors (credit grantors) that you may be a victim of identity theft. Creditors who are notified of the Fraud Alert will usually take extra precautions before issuing new credit in your name. A fraud alert will let you attach a short statement to your credit file. This statement can say something like “My identity might have been stolen, before granting any new credit, contact me directly at number (XXX) XXX-XXX”. However, nothing in Canadian law obliges the creditors to take additional measures when a Fraud Alert is present in a credit file. It should also be noted that not all credit grantors will obtain a credit report before issuing new credit or opening accounts in your name. Thus a Fraud Alert is not a fail-proof protection. Back to top This page last updated: June 2, 2007 Webpage URL: ht
There are two types of fraud alerts: an initial alert, and an extended alert. An initial fraud alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you’ve been taken in by a “phishing” scam. With an initial fraud alert, potential creditors must use what the law refers to as “reasonable policies and procedures” to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you. When you place an initial fraud alert on your credit report, you’re entitled to order one free credit report from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports
A fraud alert is a notice attached to someone’s credit report which indicates that he or she has been or might be a victim of identity theft. Fraud alerts are placed by request from people who want to notify creditors to exercise caution when opening new accounts in their names. They can be used as a tool to reduce the risk of identity theft and to prevent additional incidences of identity theft, and they do not negatively impact someone’s credit. Someone who thinks that he or she might be at risk of identity theft should request a fraud alert. Some things which might put someone at risk include: stolen mail, a missing or stolen wallet, or a phishing scam. By putting in a fraud alert, the consumer will ensure that any companies asked to open accounts in the consumer’s name will exercise special diligence to confirm that these accounts are legitimate. Once someone has become a victim, placing a fraud alert notifies companies that some of the activity on the credit report may be fraudule
