At Peak Wealth Planning, we continue to encourage our clients to take proactive steps in protecting their credit, and one of the most effective ways to do that in 2024 is by placing a fraud alert on your credit file. In today’s digital world, It is nearly impossible to prevent your personal information, such as your Social Security number, from being exposed or compromised. A fraud alert provides an extra layer of security by instructing creditors to verify your identity before processing any credit application in your name. Best of all, this service is free!
A fraud alert provides an extra layer of security by instructing creditors to verify your identity before processing any credit application in your name. Best of all, this service is free!
What does a fraud alert do?
A fraud alert adds an additional verification step to the loan application process, helping to prevent criminals from opening accounts or taking out loans using your information. When a lender requests access to your credit report from one of the national credit bureaus (Experian, TransUnion or Equifax), a fraud alert prompts the lender to confirm your identity before proceeding.
Once you place a fraud alert with any one of the three major credit bureaus, it will automatically apply to all three. There are several types of fraud alerts available depending on your situation:
Initial Fraud Alert. This type lasts one year and can be renewed as often as needed. It is a great option if you suspect your information has been exposed but don’t have confirmation of identity theft.
Active-Duty Fraud Alert. This is designed for active-duty service members and also lasts for one year. It offers extra protection while deployed or away from home.
Extended Fraud Victim Alert. If you have been a victim of identity theft and have filed an official report, you can apply for this seven-year alert by submitting your identity theft report to the credit bureaus.
How does a fraud alert affect your credit?
The great news is that placing a fraud alert will not impact your credit score or the information on your credit report. However, it may affect the ability to get instant approval for certain credit offers, such as those you encounter online or in stores, as the automated systems may require additional identity verification.
While this extra step may delay approval for instant credit, it will not prevent you from being approved; it simply adds a verification process to help keep your information safe.
When should you set up a fraud alert?
If you have reason to believe that your personal information, such as your Social Security number or credit card details, have been compromised – whether due to a data breach, theft, or phishing scams – a fraud alert is a wise precaution. Even if you haven't been directly affected, taking this step can provide peace of mind and protection from future threats.
In today’s environment, where cybersecurity threats are increasing, setting up a fraud alert should be part of your annual financial check-up. It’s quick, free, and can significantly reduce your exposure to identity theft.
How to set up a fraud alert
Setting up a fraud alert in 2024 is easier than ever. You can do so by visiting any of the three major credit bureaus. Once you place an alert at one bureau, it will be applied to your reports at all three bureaus:
Experian: Visit Experian’s Fraud Alert Center to follow their step-by-step guide and upload the required documents, such as your government-issued ID and proof of address.
Equifax: Call Equifax at 1-800-685-1111 or visit Equifax’s Fraud Alert page.
TransUnion: Go to TransUnion’s Fraud Alert page and follow the instructions to activate your alert.
Protect yourself in 2024
A fraud alert is a smart and simple way to protect your financial identity from scammers and unauthorized access. With the rise of data breaches and identity theft, it’s more important than ever to take steps to safeguard your credit. Placing a fraud alert is an easy way to give yourself peace of mind without major inconvenience.
We recommend setting a reminder to renew the fraud alert annually to ensure that your personal information remains protected.
Final thought.
Are you confident in your financial security as you approach retirement? If you have accumulated more than $2 million and are looking for expert wealth management guidance, the Peak Wealth Planning team is here to help. Schedule a call to learn more today to learn more about how we can assist you in reaching your financial goals.
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About the Author
Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind.
Peak Wealth Planning offers personalized concierge services to meet your wealth management needs, including financial planning, investment management, ESOP diversification, retirement income, insurance, and estate planning. As a fee-based financial advisor based in Chicago, Peak Wealth Planning serves a select group of clients in Illinois and across other states.