Everything You Need to Know About Extended Fraud Alerts | Credit 101 Ep. 199

Extended fraud alerts are a critical resource for individuals who have been confirmed victims of identity theft or who have ongoing concerns about their credit security. Here’s a detailed guide to help you understand extended fraud alerts, their benefits, and how to use them effectively:

1. What is an Extended Fraud Alert?

• Definition: An extended fraud alert is a more comprehensive form of fraud protection compared to the initial fraud alert. It requires creditors to take additional steps to verify your identity before issuing new credit or loans.
• Purpose: Designed to provide long-term protection for individuals who have already been victims of identity theft or who are at high risk.

2. Duration and Eligibility

• Duration: Lasts for 7 years from the date it is placed on your credit report.
• Eligibility: Available to individuals who have been confirmed victims of identity theft and can provide supporting documentation, such as a police report or a Federal Trade Commission (FTC) Identity Theft Report.

3. How to Place an Extended Fraud Alert

• Contact One Credit Bureau: Reach out to one of the three major credit bureaus—Equifax, Experian, or TransUnion. The bureau you contact will notify the other two.
  • Equifax: Call 1-800-525-6285 or visit the Equifax website.
  • Experian: Call 1-888-397-3742 or visit the Experian website.
  • TransUnion: Call 1-888-909-8872 or visit the TransUnion website.
• Provide Documentation: You’ll need to provide a copy of the police report or FTC Identity Theft Report to verify that you are a victim of identity theft.
• Receive Confirmation: Once the extended fraud alert is placed, you will receive confirmation from the credit bureau, and the alert will be added to your credit report.

4. Impact of an Extended Fraud Alert

• Creditor Verification: Creditors are required to take additional steps to verify your identity before granting new credit. This might include contacting you directly and asking for additional documentation.
• Credit Report Access: Your existing credit accounts remain unaffected, and you can still apply for credit as usual. However, you may need to provide additional information to creditors.

5. Benefits of an Extended Fraud Alert

• Long-Term Protection: Provides extended protection for up to 7 years, making it ideal for individuals who have ongoing concerns about identity theft.
• Increased Security: Offers a higher level of security compared to an initial fraud alert, as creditors must follow stricter verification procedures.

6. Renewing or Updating an Extended Fraud Alert

• Renewal: An extended fraud alert lasts for 7 years, so there is generally no need for renewal within this period. However, if you need additional protection beyond 7 years, you may need to request a new alert.
• Updating Information: If your contact information or situation changes, you may need to update the extended fraud alert with the credit bureaus.

7. Fraud Alert vs. Security Freeze

• Fraud Alert: Requires creditors to verify your identity but does not block access to your credit report.
• Security Freeze: Restricts access to your credit report entirely until you lift the freeze. Provides more protection than a fraud alert but requires more management.

8. Things to Keep in Mind

• Credit Applications: Be prepared for potential delays or extra steps when applying for new credit. Creditors will need to verify your identity more thoroughly.
• Monitor Your Credit Report: Regularly review your credit reports to ensure that the extended fraud alert is working as intended and that no unauthorized activity has occurred.
• Additional Steps: Consider placing a security freeze in addition to an extended fraud alert for even greater protection.

Conclusion

Extended fraud alerts are a powerful tool for individuals who have been victims of identity theft or who have ongoing concerns about their credit security. By understanding how to place and manage extended fraud alerts, you can take proactive steps to safeguard your financial information and protect yourself from further fraudulent activity.