What is Fraud Alert?

What is fraud alert?

When fraudulent activity is observed on a financial account, a fraud alert is initiated to prevent further obstruction. The alert will secure your account, informing you of transactions which are performed without proper verification.

There are two types of fraud alerts – initial alert and extensive alert.

An initial alert will comprise of a 90 day vigilance period, during which verification will be necessary before credit is issued. With this alert, creditors are allowed to use "reasonable policies and procedure" to determine to authenticity of credit activity. This form is especially functional in minor cases, such as a wallet or purse theft. It also used by victims of phishing scams, as a precaution for identity theft.

An extensive alert will comprise of a seven year protection period. To initiate an extensive alert, you are required to produce proof of privacy penetration, which is most often identity theft. As a prerequisite, you must complete an Identity Theft Report, and have it properly reviewed. With this alert, creditors are obligated to contact you before issuing credit to your name. Additionally, during your period of protection, you are entitled to bi-annual credit reports.