Credit Bureaus Are on the Guard of Their Customers' Credit Reports
Security and Protection
These days the one who has information can become the Lord of the world. Information is one the most precious treasures you can have. Even if you do not work in FBI or CIA and do not possess any secret and very important information, if you have a credit card you have something to value.
Your personal credit card information is what you have to cherish as the apple of your eye. Otherwise you risk falling a victim to a credit card fraud. According to the statistics, credit card fraud is the most widespread form of identity theft.
The escalating number of credit fraud victims proves the problem of identity theft to be very serious. The statistics figures show that over 200,000 credit card owners suffered from identity theft cases in 2007. Credit card companies are greatly concerned about this high credit card crime rate, as well as credit bureaus. They keep working on new alert systems to guarantee their customers a reliable credit crime protection.
So, let's figure out how exactly fraud alert systems protect you from credit card scammers.
When fraud alert is set on your credit file, no one can open a new account in your name or change your credit limit. Before someone gets your credit file on request, your creditor verifies if the inquirer is authorized to do it or not. Though it will take you more time to get to your credit report info undergoing these official testing procedures, you can feel safe about your credit file. Fraudsters will not be approved to get your report.
So, the three major credit bureaus - Equifax, Experian, and Trans Union - develop new fraud alert systems.
Equifax has recently launched online fraud alert products available to credit consumers for free.
Initial Fraud Alert
One of the programs enables you to set a 90 days fraud alert - an initial fraud alert, or the one that will last for 7 years, that is an extended fraud alert. Those who are on active duty in the military can get the same option, but it will last for 12 months. You can set this kind of alert by phone, online, or you can send a letter with your request.
Extended Fraud Alert
If you are up to setting an extended fraud alert, wait for your lender to contact you and verify your request. But to qualify for the extended fraud alert you need to be a victim of identity theft. Only a person that can provide evidence of the fact that he or she fell victim to credit card scammers' fraudulent activities with a police report can get this option. That is a bit disappointing for card users that were lucky to avoid ID theft.
Extra Fraud Alerts Options
However, you never know when fraudsters attempt to steal your identity. Besides, a 3 month guaranteed fraud protection is better than living by a hit-or-miss principle. And after your initial fraud alert expires, you can set a new one.
When you sign up for any of these two fraud alert programs, you also get two free extra copies of your credit report, a 5 years insurance, and your name will be struck off the list of pre-approved credit card offers.
In case you set a fraud alert on your Equifax credit report, your credit file gets protected at the other two bureaus automatically.
You perfectly realize what adverse consequences credit card fraud and ID theft cases are fraught with. Damaged credit score, ruined credit history, enormous credit card debts, and even bankruptcy - that is what an unprotected credit report can result in.
Of course, setting a fraud alert is not a panacea from all types of credit fraud. But it significantly reduces your chances to become a victim of credit card scam. But after you suffer from fraudsters' predatory practices you will be sorry. And, as the proverb goes, it is better to be safe than sorry.
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Comments
Jenniffer, 05:48 AM, April 03, 2008
thanks for the information on fraud alert systems. I'm figuring out on my new credit card protection. placing a fraud alert on my credit file is a good idea
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