If identity theft prevention is not enough because your identity has already been stolen, you should immediately sound an alarm. Alert the local authorities as soon as you learn that your wallet has been stolen. When that happens, you are invoking the first type of fraud alert.
- Initial fraud alert.
This alert lasts for 90 days. It will tell the authorities that your credit record ought to be on the watch list for any activity. This way, you’ll be alerting the credit card companies (for example) that they should verify the identity of the person using your account before giving approval.Unfortunately, these measures are not really enough to prevent the thieves from taking advantage of the stolen identities. The best solution is to close the account completely to avoid other people taking advantage of your account.Policies that try to give identity theft protection may not be adequate. So you really have to go the extra mile to ensure that you don’t lose much from having your identity stolen. However, at least if you give the initial fraud alert, you can request that only the last four digits of your Social Security Number should show in the credit reports. Also, they are compelled to reissue a credit card free of charge. - Extended fraud alert.
This alert can stay on your credit report for 7 years. However, you will have to file a complaint directly to the FTC—not just to the local authorities. You can file the complaint with the Federal Trade Commission online or in person. This will give you the Identity Theft Report which will be the supporting document you’ll need to get an extended fraud alert for your credit reports.If you have the extended fraud alert, potential creditors are required to meet you personally before approving any loans to your name.
These fraud alerts may mean that it would take more time before any of your loans get approved. However, at least it also means that the loan you apply for will actually be used by you. Now, there are limitations to the “Fraud Alert”.
In terms of identity theft protection, the fraud alert will prevent the thief from opening any new accounts in your name. Unfortunately, it is not the solution for all kinds of identity thefts. After all, these criminals come up with ingenious ways to take advantage of your identity.
Should the criminal be committing fraud at the time that you file your fraud alert, the alert will be unable to stop the criminal from finishing what he has already started. Clearly, the fraud alert is only a form of prevention—to stop the criminal from doing something more reprehensible with the stolen information.
What is really important is an identity theft prevention measure that will stop the crime from the very beginning. In order to nip the problem in the bud—before it gets any worse—you must remember this: protect your information, don’t give it to just anybody.
