A credit fraud alert, or fraud alert, is a method that consumers can use to alert potential lenders that their identity may have been stolen. Credit fraud alerts are placed on credit reports by consumers, and remain in place for 90 days.
A credit fraud alert is activated by a consumer, usually in writing, with a credit reporting agency when the consumer believes their identity may have been put at risk by identity thieves. This can happen when credit fraud has taken place, or when a consumer loses their credit card or has the credit card stolen.
Credit fraud alerts warn potential lenders that the person applying for credit or changing an existing credit account may not be the rightful owner of that information. When the credit fraud alert is in place, merchants and lenders are supposed to verify that the person applying for credit or changing an existing credit account is the authorized user or owner of that account.