I Put a Fraud Alert on My Credit Reports. Here's Why You Should, Too

As a growing number of Americans fall prey to scams each week, protecting yourself from financial harm is essential. One simple yet effective way to safeguard your personal info is by placing a fraud alert on your credit reports.

With scammers becoming increasingly sophisticated and targeting individuals through various means such as email, phone calls, and texts, it's easy to feel like you're constantly at risk. According to a recent CNET survey, an astonishing 96% of Americans are targeted by scammers each week.

Data from the Federal Trade Commission reveals that financial losses due to fraud reached $12.5 billion in 2024 – a 25% increase from the previous year. While reporting fraud is crucial for helping law enforcement catch criminals and inform the public about popular scams, it may not offer much protection on an individual level.

However, placing a fraud alert on your credit reports can serve as a vital layer of defense against identity theft and financial exploitation. This simple yet effective measure can prevent scammers from opening new accounts in your name, giving you peace of mind knowing that extra precautions are in place to safeguard your personal info.

To understand the benefits and process of fraud alerts, let's dive deeper into this essential step in protecting your credit reports.

What Can a Fraud Alert Do?

A fraud alert on your credit report is essentially a message that warns lenders to verify your identity before approving any new accounts. This layer of protection helps prevent scammers from taking advantage of you by opening new accounts in your name.

When setting up a fraud alert, it's essential to note that all three major credit bureaus – Experian, Equifax, and TransUnion – must be alerted simultaneously. This ensures that any potential issues with your account are promptly identified and addressed.

A fraud alert is categorized into three types:

Types of Fraud Alerts

* Initial Fraud Alerts: These alerts last for one year and alert businesses to check with you before opening a new account in your name. They can be set up by anyone, regardless of whether they've been the victim of identity theft. * Extended Fraud Alerts: This type of alert lasts for seven years and is only available to individuals who have experienced identity theft or filed an FTC identity theft report at IdentityTheft.gov or completed a police report. These alerts are more comprehensive than initial fraud alerts, but require specific documentation to establish eligibility. * Active Duty Alerts: For active-duty service members, these one-year alerts can be used to protect credit while deployed. They're automatically renewable for the length of deployment after year one.

To set up a fraud alert on your credit reports, you'll need to contact all three major credit bureaus using the provided information:

Experian: Visit their website and click on "fraud alerts," then create an account or sign into an existing one. Follow the prompts to select the type of fraud alert you want to set up.

Equifax: Contact Equifax directly via phone, email, or online chat to request a fraud alert. You can also use their website's credit help page to initiate the process.

TransUnion: Reach out to TransUnion through their website, phone, or in-person at one of their local offices. Follow the on-screen instructions to set up a fraud alert.

After setting up a fraud alert, you'll need to confirm your phone number and place it on file with each credit bureau. This step ensures that if someone tries to open an account using your info, they'll be notified to verify your identity first.

Once the process is complete, you can rest assured that your credit reports are protected by a layer of extra security – one that will alert lenders to double-check your identity before approving any new accounts in your name.

A fraud alert doesn't replace freezing your credit entirely; however, it provides an additional layer of protection and flexibility. If your credit is already frozen, you can still set up a fraud alert without having to unfreeze your reports first.