What Does a Security Alert on My Credit Mean?

The number of identity theft victims dropped 28 percent between 2009 and 2010, but the decrease was mostly due to a lack of large-scale security breaches, according to a report by Javelin Strategy & Research. Fraud by people the victim knows, however, went up 7 percent. One way to add extra protection to your credit profile is a security alert. Security alerts on credit reports are a way to ask creditors to double-check the identity of borrowers suspected of using stolen data.

Identification

A security alert on your credit report means you might be a victim of identity fraud and the lender should take extra precaution to verify your identity. Usually, this means requesting a drivers license and Social Security card. The major credit bureaus share security alerts, so you only need to ask one agency to grant your request. The credit bureaus do not place security alerts unless you initiate such an alert.

Effectiveness

As of 2010, there are no hard and fast rules as to how a lender must go about verifying the identity of someone with a security alert on his credit profile. Lenders often ignore a warning on a report, according to MSN Money Central. This is why some security experts, such as Michelle Jun, a staff attorney for Consumers Union, suggest placing a freeze on your credit report, which prevents lenders from viewing it unless you give explicit permission.

Time Frame

The credit bureaus put a security alert on your report for 90 days. If you want to keep it on your profile, you must call and renew it quarterly for as long as you need the alert to remain in effect. Victims of identity theft who have a police statement can request an fraud victim statement. With such a police report, you can ask the credit bureau to place an extended fraud alert on your report. This asks lenders to call before granting credit and lasts for seven years.

Tip

Military personnel can request an alert that lasts as long as they serves on active duty. They can also receive an extended fraud alert without proving identity theft. Even if you use a security alert, a freeze or signing up for credit monitoring might be a wise move, because thieves might just wait to use your information or you could forget to renew the alert.