Fraud Alert vs. Credit Freeze: Which is Best?
Victims of identity theft have two primary options to protect themselves from further fraud: a credit freeze or a fraud alert. Both options make it harder for someone else to open a new account in your name, but they don't offer the same level of protection.
A fraud alert is a warning added to your credit report that you are a victim of identity theft. If a fraudster tries to open a new account in your name, a lender will pull your credit report, see the warning, and is then supposed to take extra measures to verify that you are truly the person opening the new account.
Fraud alerts last for 90 days, although victims of identity theft have the option to place an extended fraud alert on their credit report that will last for seven years. Sticking with a 90-day option does require you to keep renewing the fraud alert. However, every time you renew the alert, you're eligible for an extra free credit report from each of the major credit bureaus. That means you could check all three of your credit reports every three months for free, which is a wise precaution if you've already suffered identity theft.
Source: Fool.com
