The Federal Trade Commission (FTC), the nation's consumer
protection agency, says before you pay for an identity theft prevention
product or service, make sure you understand exactly what you're paying
for. Many people find value and convenience in paying an outside party
to help them exercise their rights and protect their information.
At
the same time, some rights and protections you have under federal or
state laws can help you protect your identity and recover from identity
theft at no cost. Knowing and understanding your rights can help you
determine whether - or which - commercial products or services may be
appropriate for you.
Fraud Alerts
A fraud alert is a signal
placed in your credit report or credit file to warn potential creditors
that they must use what the law calls "reasonable policies and
procedures" to verify your identity before they issue credit in your
name.
Fraud alerts may be effective at stopping someone from
opening new credit accounts in your name, but they may not prevent the
misuse of your existing accounts.
Under the federal Fair Credit Reporting Act (FCRA), you may be entitled to two kinds of free fraud alerts: initial and extended.
You
may ask a consumer reporting company to place an initial fraud alert on
your credit report if you suspect you have been, or are about to be, a
victim of identity theft. This may be appropriate after your wallet or
another source of personal information is lost or stolen.
An
initial fraud alert is good for 90 days, and can be renewed when
appropriate. To place an initial fraud alert, call the toll-free fraud
number of any one of the three national consumer reporting companies.
The
company you call is required to contact the other two; they, in turn,
will place an alert on their versions of your report. Expect to receive a
confirmation from each of the companies.
When you place an initial fraud
alert on your credit report, you're entitled to order one free credit
report from each of the consumer reporting companies; if you ask, only
the last four digits of your Social Security number will appear on your
reports.