Credit Report Fraud Alerts and Security Freezes

Credit Report Fraud Alerts and Security Freezes

Protecting your credit should be near and dear to your heart for homebuyers, and all other consumers, unless you plan to live off the grid. Below are resources to help protect yourself and your credit, and contact information if your identity or credit has been compromised. We also recommend that you join an identity and credit protection program, there are several out there including nationally advertised organizations that will provide such services for less than $10 a month. You can also proactively do it your self for far less, which will be covered in a future blog.

Fraud Alerts - Overview

Fraud alerts can help prevent unauthorized opening of new accounts under a consumer’s name. The Fair and Accurate Transaction Act (FACTA) added a new section to the Fair Credit Reporting Act (FCRA) that provides for three versions of fraud alerts consumers may add to their files with nationwide consumer reporting agencies:

• Fraud Alert
• Extended Fraud Alert
• Active Duty Fraud Alert
• Security Freeze

The alerts differ in their initiation requirements, time periods, and limits on creditors.

Each alert must state the consumer does not authorize new credit (other than the extension under an existing open-end credit account, e.g. credit card); an additional card on an existing account; or any increase in the credit limit of any existing account. Below is an example of a credit report entry generated by a 90 day fraud alert:

ID SECURITY ALERT: FRAUDULENT APPLICATIONS MAY BE SUBMITTED IN MY NAME; OR MY IDENTITY MAY HAVE BEEN USED WITHOUT MY CONSENT TO FRAUDULENTLY OBTAIN GOODS OR SERVICES. DO NOT EXTEND CREDIT WITHOUT FIRST VERIFYING THE IDENTITY OF THE APPLICANT. THIS SECURITY ALERT WILL BE MAINTAINED FOR 90 DAYS BEGINNING 02/01/2014.

Once the fraud alert has been placed the consumer is entitled to order free copies of their credit report. Consumers may request only the last four digits of their Social Security to appear on the credit report.

Upon receipt, consumers should review their report carefully. Look for inquiries from unknown companies; new accounts opened without permission; and debts on accounts that cannot be explained.

Verify all personal information is correct (e.g. SSN; names and initials; addresses; etc). If fraudulent or inaccurate information is present, follow the Federal Trade Commission's guidelines on disputing fraudulent information here: http://www.consumer.ftc.gov/features/feature-0014-identity-theft

Consumers are encouraged to check credit reports periodically in order to ensure no new
fraudulent activity has occurred.

Initial Fraud Alert

• Creditors must utilize "reasonable policies and procedures" to form a reasonable belief that the creditor knows the identity of the person making a credit request.

• Alerts stay active for 90 days. Consumers may request another 90-day fraud alert by submitting a new request within 30 days of your current alert expiring.

• Consumers may request one free credit report from each bureau within the next 12 months.

• A fraud alert at any of the credit bureaus automatically initiates an alert at the other two. Call any of the following numbers 24 hours a day:

Equifax 800-525-6285

Experian 888-397-3742 (Option 2; then Option 2)

Trans Union 800-680-7289

NOTE: There is a fourth credit bureau Innovis that does not share fraud alerts with the other credit bureaus. Consumers must submit a separate fraud alert.

Innovis 800-540-2505

Extended Fraud Alert

•  Consumers may provide a telephone number in the alert which the creditor must use to verify the requester's identity unless the consumer designated another reasonable method of contact.

•  Alerts stay active for 7 years.

• Consumer must submit an identity theft report which includes a report from a law enforcement agency. Consumers are subject to criminal penalties for submitting false reports.

• Consumers are removed from marketing lists for 5 years which the bureaus sell to lenders and insurance companies for use in solicitations.

•  Consumers can request two free credit reports from each bureau within 12 months of
submitting an extended fraud alert.

Active Duty Alert

• Consumers on active military duty can add an alert of current status to their files.
• Consumers on active duty include reservists who are on duty, other than at their usual
station (aka mobilizations).

• Once a military consumer requests the active duty alert, it will become part of his/her credit report for a 12 month period.

• Military personnel may request another active duty alert by submitting a new request within 30 days of the current alert expiring.

NOTE: There is a fourth credit bureau Innovis that does not share fraud alerts with the other credit bureaus. Consumers must submit a separate fraud

Security Freezes

Security freezes are designed to prevent a credit reporting company from releasing your credit report without your consent.

To place a security freeze consumers may contact the credit bureaus at the following phone numbers and links:

• Equifax 888-909-8872

https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp

• Experian 888-397-3742 (Option 2; then Option 2)
http://www.experian.com/consumer/security_freeze.html

• Innovis 800-540-2505
https://www.innovis.com/securityFreeze/index

• Trans Union 888-909-8872

http://www.transunion.com/personal-credit/credit-disputes/credit-freezes.page

Removing Fraud Alerts

To remove fraud alerts, consumers must submit a written request to the credit bureaus that contains identifying information including:

• Consumer’s name
• Current address
• Social Security Number
• Date of birth
• Telephone number
• Two documents verifying current address, (e.g. utility or insurance bills)
• Copy of government-issued photo ID (e.g. driver’s license; passport; etc.)

Consumers may be required to send written requests to each address below, and should
consider using certified mail and/or overnight delivery since the request may contain sensitive information.

Equifax Consumer Fraud Division
PO Box 740256
Atlanta, GA 30374
800-525-6285

Experian
P.O. Box 9532
Allen, TX 75013
888-397-3742 (Option 2; then Option 2)

Innovis
P.O. Box 1640
Pittsburgh, PA 15230-1640
800-540-2505

Trans Union
P.O. Box 6790
Fullerton, CA 9283
800-680-7289