What is fraud protection?
Definition
Fraud protection means the steps, tools and services that make it harder for someone to use your identity, accounts or money without your consent, such as credit freezes, fraud alerts, account alerts and strong logins.
- Category
- Security
- Also called
- fraud prevention, identity fraud protection
- Last updated
Fraud protection is a set of habits and tools rather than a single product. It covers stopping a criminal from opening credit in your name, from taking over your accounts and from tricking you into sending money.
The main tools
The FTC says credit freezes and fraud alerts can help protect you from identity theft by making it harder for scammers to open new credit accounts in your name.
A credit freeze means nobody can open a new credit account in your name, including you, while it is in place. It is free to place or lift, does not affect your credit score, lasts until you lift it, and anyone can place one at any time. You place it with all three credit bureaus: Equifax, Experian and TransUnion.
A fraud alert tells businesses to check with you before opening a new credit account. It does not stop them from seeing your credit report. An initial alert lasts one year and is free. You contact one bureau and it must tell the other two. An extended alert, for people who have experienced identity theft, lasts seven years and needs an FTC identity theft report or police report.
Other layers
Alerts from your bank or card issuer for large or unusual transactions, two-step verification on your accounts, and unique passwords all work alongside credit tools. Credit freezes cover new credit only, so they do not stop someone using an existing account.
A concrete example
Your Social Security number appears in a breach. With a freeze in place, a thief who tries to open a card in your name is turned away at the credit check. Without it, they might succeed before you notice.
Fraud protection vs. identity theft protection services
Paid services usually bundle monitoring and alerts. The credit freeze and fraud alert are free to do yourself. These are the US tools; other countries have their own credit file and fraud services.
How to protect yourself
- 1
Freeze your credit at all three bureaus
Contact Equifax, Experian and TransUnion. It is free and lasts until you lift it. Lift it temporarily when you apply for credit, a job, a flat or insurance.
- 2
Add a fraud alert if you are affected
If you are or suspect you are a victim of identity theft, place an initial fraud alert with one of the three bureaus. It lasts one year and you can renew it.
- 3
Turn on account alerts
Set up text or app alerts for card transactions, logins and password changes.
- 4
Secure your logins
Use unique passwords and two-step verification, and be wary of calls, texts and emails that press you to act quickly or move money.
- 5
Limit the personal details available about you
Scammers use public details to pass identity checks. Serus finds where your address and phone number are listed and removes them.
See where your personal data is exposed
Serus finds it on data brokers and people-search sites and removes it.
Frequently asked
What is the difference between a credit freeze and a fraud alert?
A freeze blocks new credit accounts in your name until you lift it. A fraud alert lets lending go ahead but asks the business to check with you first. You can use both.
Does a credit freeze cost money or hurt my credit score?
No. The FTC says it is free to place or lift a credit freeze and that it doesn't affect your credit score.
Does fraud protection stop all fraud?
No. A credit freeze covers new credit accounts but not misuse of an account you already have, and no tool stops scams where you are tricked into sending money. Several layers work best.
Sources
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