A person who has been the victim of a cheque fraud may experience bad cheques being made out on his savings current-account. This kind of fraud is exactly the reason why security alerts exist. However a security alert or of fraud alert on the credit report will not be able to help a person who is the victim of a cheque fraud. Since a cheque fraud that does not involve credit it will not be reported to the credit reporting agencies. If a transaction is not reported to the credit bureau and there is very little or nothing that the credit bureau can do about it. Credit alert all security alert on a credit report exists for the purpose of letting the lenders that the person who the credit report belongs to may be in the danger of already a victim of credit fraud. Furthermore, the fair credit reporting act strengthens the system that mandating that the lender takes certain precautionary steps to verify the identity of the applicant which may involve making direct contact as per the contact information on the credit report as well as asking for the documents to prove the identity of the person.
If you have been the victim of a cheque fraud you can add a security alert to your credit report in order to prevent the information that has been stolen from being used to commit further credit fraud. The initial security alert lasts for a period of 90 days and has a statement attached to the credit report that is phased somewhat like this:
Fraudulent applications May be submitted in my name or identity may be used without my consent to fraudulently obtained goods or services. Do not extend credit without first verifying the identity of the applicant. I can be reached at XXXXXXXXXXXXXXXXXX. This security alert will be maintained for 90 days beginning MM-DD-YY.
A security alert like this cannot be ignored and the lender is required by the federal law to take appropriate action. In case evidence of identity theft and credit fraud is found during the first 90 days of the security alert you can file a report with the police and attach a victim’s statement to your security alert. The security of the statement reads something as follows:
Fraudulent applications May be submitted in my name or identity may have been used without my consent to fraudulently obtained goods or services. Do not extend credit to the first contacting me personally in verifying all my application information at DAY XXXXXXXXXXXXXXXXXX or EVENING XXXXXXXXXXXX. This with alert will be maintained for seven years beginning DD-MM-YY.
All the three national credit reporting companies Experian, Transunion and Equifax share the initial security alert and fraud victims’ statement. So all that you need to do is file the request with any one of the credit bureaus. The other two credit reporting agencies will take up the fraud alert automatically.