Glossary

Fraud Alert

An FCRA-mandated flag on a consumer's credit file requiring identity verification before new credit is extended.

A fraud alert is an FCRA §605A flag on a consumer's credit file. Two types: initial (90 days, no documentation required) and extended (7 years, requires FTC affidavit). When a fraud alert is in place, lenders are required to take "reasonable steps" to verify the consumer's identity before extending new credit.

You only file with one bureau; they're required to notify the other two. Free. Doesn't lower credit scores.

Also called

initial fraud alertextended fraud alert

Related terms

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