Is an Online Credit Report or a Mailed Credit Report Safer?

With Internet crime on the rise---the Federal Bureau of Investigation's Internet Crime Complaint Center reached the 2 million-complaint mark in 2010---consumers have legitimate reasons be concerned about the safety of pulling a credit report online. This fear, however, is unfounded. Except in a few rare cases, online credit reports are almost the safest way to receive one.

Identification

Online credit checks are the safest way to request a report, according to Experian, one of the major credit bureaus in the U.S. The major credit bureaus all use secure servers that encrypt data as does the Annual Credit Report website, which provides every consumer in the U.S. a free credit report from each of the three major credit bureaus annually. Mailed reports, on the other hand, are usually much easier to compromise. The mailman, for example, could accidentally deliver it to the wrong address or a thief might steal it from a mailbox.

Considerations

It only makes sense to order a report via mail when the consumer's identifying information is different from that in the bureau's database or the customer cannot pass a verification test. The bureaus require customers to answer questions about their financial background to verify their identity, such as how much the consumer pays in monthly debt charges. If the customer cannot answer this information he must verify his identity by mail.

Considerations

A major part of identity fraud involves a human intercepting a person's private data. A common email scam, for instance, involves the fraudster sending out messages purporting to come from the consumer's financial institution. Online reports transfer almost instantly and even if a thief were to intercept the encrypted communication in that small time frame he would need special software to decode it.

Tip

Customers that run a report through someone other than the major credit bureaus or Annual Credit Report should research the security of the site. Secured websites have an address that starts with "https" and a lock icon at the bottom of the browser, warns PrivacyMatters.com. Also, reputable companies have a clearly stated privacy policy that includes actions the consumer can take if he feels the company uses his data in violation of the privacy agreement.