How an Equifax Fraud Alert Can Save You from Identity Theft
The Fair Credit Reporting Act (FCRA) gives you the right to request a "fraud alert" from any or all of the 3 major credit bureaus. For the purposes of this article, we will use the example of the Equifax credit reporting agency and an Equifax fraud alert, though the same basic information pertains to the other two credit reporting agencies as well.
Most credit card companies will only limit your liability in cases of fraud to $50 and still others have instituted "Zero Responsibility" protection, which has given many consumers the false impression that they are thus safe from credit card fraud. But that couldn't be farther from the truth.
Credit card fraud is a gateway to identity theft. Sure, your credit card company may forgive you the debt accrued in a case of credit card fraud, but there's nothing to say that fraudster hasn't also (and already) used your credit report information to open new accounts, taken out car loans, gotten a job, or rented an apartment all in your name.
An Equifax fraud alert, however, can protect you from that. An Equifax fraud alert notifies creditors (and potential creditors) that you may have been the victim of identity theft.
The credit bureaus will now be obligated to follow certain heightened security procedures any time an inquiry is made of your credit file. Immediately, any further fraudulent action your identity thieves attempt to perpetrate will be much more difficult as your credit file will have now been flagged for potential trouble.
A side effect of an Equifax fraud alert, however, is that it may also delay your ability to legitimately get credit yourself. However, this is a price worth paying. Think of it like heightened airport security post-9/11 (or at least the intended, proper, honest implementation of it); it may be inconvenient, but it's ultimately been put there to protect you (and us).
To place an Equifax fraud alert, call the Equifax credit reporting agency at 1-800-525-6285 and request one. The credit bureau will probably ask you to provide valid proof of ID, like your social security number. In most cases, you will be granted an initial Equifax fraud alert for 90 days.
What's more, once they grant you the alert, the Equifax credit reporting agency will then contact the other two credit bureaus and notify them of the request. The other two credit bureaus will then either grant you a 90-day fraud alert as well, or request more information from you before then doing so.
You will get a confirmation once an Equifax fraud alert is implemented.
You may also request an extended Equifax fraud alert which lasts for a full 7 years. In order to get one of these, you'll have to present an "Identity Theft Report" that includes a copy of an identity theft report filed with a local, state, or federal law enforcement agency along with any extra credit report information the Equifax credit reporting agency might request. You can find out more about the identity theft report at: www.consumer.gov/idtheft.
When you place an initial Equifax fraud alert, you are entitled to receive a copy of all the information in your file at all three major credit bureaus. An extended Equifax fraud alert also lets you request two more free disclosures of your credit reports within a 12-month period following your placing the alert.
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