How to Place a Fraud Alert: When to Use One vs. a Freeze

By Tom Reardon

A fraud alert is the protection people reach for when a credit freeze feels like more than they want to deal with. It’s free, you can set it up in a few minutes with a single credit bureau, and it does one specific thing: it tells any lender who pulls your credit to verify your identity before opening a new account in your name.

It’s also a lighter tool than a freeze, and that difference is the whole point. A freeze blocks access to your credit file. A fraud alert leaves the file open and adds a verification step at the moment someone applies for credit. That trade, less protection in exchange for less hassle, is exactly why an alert is the right call in some situations and the wrong one in others.

I spent more than 20 years on the product side of identity protection, and “freeze or alert?” was one of the most common questions I heard. Here’s the straight answer, plus how to actually place an alert at each bureau.

What a Fraud Alert Actually Does

A fraud alert is an application-stage control. When it’s on your credit report, any business that checks your report before opening new credit, issuing an additional card, or raising a credit limit is supposed to take reasonable steps to confirm you’re really you. If you include a phone number with the alert, that usually means calling you first.

What it does not do is block anyone from seeing your credit report. Lenders can still pull your file. The alert just adds a verification step on top. That’s the line that separates it from a freeze, which stops creditors from reaching your file at all.

A fraud alert also has no effect on your credit score or on what’s in your report. Experian is explicit that an alert neither helps nor hurts your scores. It’s a flag for lenders, nothing more.

There are three types, and which one you can use depends on your situation:

  • Initial fraud alert. Lasts one year and renews for free. Anyone who suspects they’re at risk of fraud or identity theft can place one, with no proof required beyond identifying yourself. Placing it also entitles you to a free credit report from each of the three bureaus.
  • Extended fraud alert. Lasts seven years. Available if you’ve been a victim of identity theft and have an identity theft report, either an FTC report from IdentityTheft.gov or a police report. It also gets you two free credit reports from each bureau over the next year and removes you from prescreened credit and insurance offer lists for five years.
  • Active-duty alert. Lasts one year and is meant for servicemembers deployed away from their usual duty station. It removes you from prescreened offer lists for two years, and a deployed servicemember can name a personal representative to manage it.

Fraud Alert vs. Credit Freeze

The short version: a fraud alert tells lenders to verify, a freeze tells them no. Here’s how the two compare on the points that actually matter.

Fraud alert Credit freeze
What it does Tells lenders to verify your identity before granting new credit Blocks creditors from accessing your credit file at all
Cost Free Free
Where you place it One bureau, which notifies the other two Each bureau separately, all three
How long it lasts One year (initial) up to seven (extended) Until you lift it
Your own credit applications Go through, with an added verification step Blocked until you thaw the freeze
Effect on credit score None None

Which one is right depends on what you’re trying to do.

  • Choose a fraud alert when you want a fast, free response to a suspected risk and you might apply for legitimate credit soon. You won’t have to thaw anything to do it.
  • Choose a freeze when your goal is to stop new accounts as firmly as possible, your data has been exposed, or you’re already seeing misuse. The FTC calls a freeze the best way to keep an identity thief from opening new accounts in your name.
  • Use both when theft has already happened or the exposure is serious. You’re allowed to place a fraud alert even if a freeze is already on your file.

You don’t need to pay for a “credit lock.”

A credit lock is a paid product the bureaus market alongside the free freeze. For the job of blocking new credit, a freeze is a legal right and costs nothing. The CFPB has said paid locks are no more effective than free freezes. If someone’s steering you toward a monthly lock subscription, that’s a sales pitch, not a security upgrade.

What a Fraud Alert Won’t Do

A fraud alert is built for one kind of fraud: someone opening new credit in your name. That’s a real risk, but it’s not the most common one.

The federal protections behind a fraud alert apply to new accounts, additional cards, and requested credit-limit increases. They do nothing for fraud on accounts you already have. If someone is draining your checking account, running up your existing credit card, or pulling money by ACH transfer, an alert won’t touch it. For that, you call the bank or card issuer directly.

This matters more than it sounds. The Bureau of Justice Statistics found that about 24 million Americans experienced identity theft in 2021, and in roughly 85% of victims’ most recent incidents, the fraud involved an account they already had. Only about 3% involved a new account alone. An alert-only plan misses most of what identity theft actually looks like.

An alert also doesn’t clean up damage that’s already on your report. If fraudulent accounts or inquiries are already showing up, you’ll need to file a report at IdentityTheft.gov and use the dispute and blocking process. With an identity theft report, proof of who you are, and a letter naming the fraudulent items, a credit bureau has to block that information within four business days.

There’s a smaller trade-off too. Because the alert tells lenders to verify you, instant-approval systems behind online or in-store credit offers sometimes can’t handle the extra step, so a legitimate application can take longer. That’s not a reason to skip an alert when you need one. It’s just worth knowing going in.

How to Place a Fraud Alert, Step by Step

The fastest route is to start with one bureau, not all three, because the bureau you contact is required to notify the other two.

1. Decide which alert you’re placing. Use an initial alert if you suspect risk or had information exposed. Use an extended alert if you already have an identity theft report. Use an active-duty alert if you’re an eligible deployed servicemember.

2. Gather what you’ll need. Have your full legal name, Social Security number, date of birth, current address, a former address if you’ve moved recently, and the phone number you want lenders to use to verify you. For an extended alert, also have your IdentityTheft.gov or police report, a government ID, and proof of address ready. The exact document list varies a little by bureau, but it points the same direction everywhere.

3. Contact one bureau. Each one offers a free online route:

Equifax. Place an initial or active-duty alert online through a myEquifax account, by phone at 888-378-4329, or by mail using the form on its fraud alert page. For a seven-year extended alert, Equifax asks for an FTC Identity Theft Report or a valid police report, plus proof of identity and proof of current address.

Experian. Create or sign in to a free account and place the alert on your file. Experian says it then notifies the other two bureaus. Initial and active-duty alerts go through in real time online. Extended alerts require proof of identity theft, uploaded or mailed, which Experian reviews after it arrives. You can start at the Experian fraud alert center.

TransUnion. Use the TransUnion fraud alert center online. For an extended alert, log in, choose Fraud Alert and then the extended option, add the phone number lenders should use, upload one document showing you were a victim of identity theft, and submit. TransUnion reviews it, activates the alert, and forwards the request to Equifax and Experian.

4. After it’s placed, don’t stop there. Pull your credit reports and read them for accounts, inquiries, or address changes you don’t recognize. You can get free weekly reports from all three bureaus at AnnualCreditReport.com. If you spot fraud that’s already happened, file at IdentityTheft.gov and start the blocking process. And keep your phone number current, since lenders may use it to verify legitimate applications later.

Placement is one call. Maintenance isn’t.

Placing an alert at one bureau spreads it to all three automatically. Removing or editing it later usually doesn’t. Experian and TransUnion both note that if you change your contact details or lift an alert, you may have to do it at each bureau separately. Plan to manage three files, not one, after the initial setup.

The Honest Bottom Line

A fraud alert is a free, fast speed bump for new-credit fraud. It’s a good fit when you want some protection without the freeze-and-thaw routine, especially if you expect to apply for a loan, card, or apartment soon. One online form covers all three bureaus, and it costs nothing.

It’s not a lock, though. If your real worry is someone opening accounts in your name and you’re not about to apply for anything, a freeze is the stronger default. If you want both the block and a visible verification flag, place a freeze and add an alert on top. They work together.

If you’re still deciding, the credit freeze guide walks through placing a freeze at each bureau, and this breakdown of whether paid identity protection is worth it covers what the monthly services do and don’t add. And if the damage is already done, if someone has already opened a credit card in your name, start there instead, because an alert alone won’t fix an account that’s already open.

Tom Reardon spent over 20 years in product and operations at major identity protection providers. He writes at MyScamGuide.com to give consumers the honest picture the industry’s marketing never did. About Tom Reardon.

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