Free Buyer GuidesCalifornia ID Theft Attorney
Fraud Alert
Finding out that you have been the victim of identity theft may be one of the most confusing, and overwhelming moments of your life. But, it's important to remember that there are effective steps that you can take to ensure that your identity is no longer used for fraudulent credit activity. One such step is a "fraud alert."
What is a Fraud Alert?
If you learn or suspect that there has been fraudulent activity on your credit cards, you can place a fraud alert on your credit report with one of the three major credit bureaus, Equifax, TransUnion, or Experian. The company you contact is required to give notice of the fraud alert to the other two. Although it's not foolproof, the alert lets creditors know that they should take steps to confirm the account holder's identity before approving any action on the account. The fraud alert also entitles you to a free credit report, which should be scrutinized for fraudulent activity. If you find fraudulent activity with your credit, you must have it removed.
Types of Fraud Alerts
When the term "fraud alert" is used, it usually refers to credit accounts, although it could also be placed on your DMV records. There are two types of fraud alerts that can be placed on your credit report: an initial alert and an extended alert.
Initial Alert
An initial 90-day fraud alert is usually a preventative measure when you suspect you have been the victim of identity theft or believe you will be a victim of identity theft. The circumstances surrounding an initial alert are usually a lost or stolen wallet or a phishing scam. With this type of alert, potential creditors cannot issue new accounts without first confirming the person's identity. Unfortunately, creditors do not always catch identity fraud. This type of alert also makes available one free credit report so that the person can monitor their accounts.
Extended Alert
An extended alert is placed on a credit report if you have been the victim of identity theft and have provided the consumer reporting company/credit bureaus with an Identity Theft Report (police report). With this type of fraud alert, creditors must contact you or even meet with you in person before issuing credit. The extended alert provides two free credit reports from each of the three major credit bureaus within a one year period.
Fraud Alert is Not a Solution
Fraud alerts do not stop the fraudulent use of existing accounts; they only stop the opening of new credit. As such, they are used as a prevention or warning system and cannot actually fix any damage done by an identity thief. If you have confirmed fraudulent activity through fraud alerts, you must follow-up with the necessary steps to remove the fraudulent accounts and activity from your credit report. Creditors, credit bureaus, debt collectors and other third parties may illegally continue to pursue fraudulent debt, however.
To protect California identity theft victims, laws have been passed that provide victims with civil remedies including monetary compensation and attorney's fees. Howard D. Silver, an ID theft attorney in California, is committed to protecting the rights of California consumers including identity theft victims. For a free consultation about your rights as a consumer, call Mr. Silver today at 866-495-3666.