If the consumer has reason to believe that their personal information has been compromised so much so that they may be a victim of fraud, or know for sure that they have been victimized then taken at a fraud alert to the credit report. There are basically two ways of placing a fraud alert on a credit report. If you suspect that your personal financial information has been compromised and you have been targeted for credit fraud then you may request the credit bureau to place the fraud alert on your credit report. This kind of an alert lasts for three months from the date is that it is placed. When this alert is present on the credit report it informs the credit that he should take special and extra precaution to verify the identity of any individual making an application for credit using that credit report. If your suspicions of fraud seemed to be unfounded you can remove the fraud alert from your credit report or wait for it to be removed on its own after the period of three months is over.
However if you find evidence of credit fraud, then you can add a statement called the fraud victim statements to your credit report as well. This is usually done after filing a report with the police about the identity theft and fraud. A victim’s statement will inform every creditor accessing your credit report for purpose of approving a credit application that he should call you to verify your identity for approving the loan. A victim’s statement remains of the credit report for a period of seven years. There is no cost involved in placing a fraud alert on a credit report.
A fraud alert on your credit report is provided to every lender when they access your credit report so that they can take the appropriate action to verify your identity.
You can place a fraud alert on your credit report by writing to the credit bureaus or even online through their website is.