Fraud Alert vs. Credit Freeze

With over 1.2 million Nevadans affected by the recent Equifax data breach, many Nevada consumers are rightfully concerned about how to protect their identities. There are two main options to protect yourself from future fraudulent credit reporting: a fraud alert or a credit freeze. 

Fraud Alert

• A fraud alert notifies lenders and creditors who pull your reports that they must take additional steps to verify your identity before extending credit. An initial fraud alert lasts 90 days and consumers can extend the alert up to 7 years. To extend the fraud alert, consumers must provide the credit bureau with an identity theft report. Consumers who initiate an extended fraud alert have the right to two credit reports from all three national bureaus over the span of 12 months.

Credit Freeze

• Unlike a fraud alert, a credit freeze locks a consumer's credit profile from new data or information being added and prevents lenders from accessing your credit profile. While a credit freeze prevents new accounts from being opened, there is no affect on existing accounts. Once initiated, the consumer is provided a PIN to unfreeze the credit report with each bureau.

​The decision regarding which option is best comes down to the personal financial situation and preference of the consumer. If you are planning to open credit accounts in the near future, it may be advisable to initiate a fraud alert rather than a full credit freeze. Consumers should consult their attorneys and financial advisors to discuss their best options to stay protected.