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Public Knowledge Center > Credit Reports |
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 Active Duty Alerts
(for Military Personnel)
Military personnel are particularly susceptible to Identity Theft because so many of their records, orders, and identification documents prominently display their Social Security number.
The Active Duty Alert is a new type of fraud alert established under the Fair and Accurate Credit Transactions Act (FACTA) that is intended to provide protections for military service personnel who are called to active duty or deployed away from their normal duty station.
If you are on active duty in the U.S. Armed Forces, an Active Duty Alert may be placed on your credit file for a period of at least twelve (12) months, at your request, if you supply adequate proof of your identity. You can remove the alert prior to the end of the twelve-month period if you request it and provide proof of identity.
How an Active Duty Alert Works
While the Active Duty Alert is in place, credit should not be extended in your name unless the credit grantor using the report first takes reasonable steps to confirm the identity of the person making an application for credit. In addition, if you provide a phone number for confirmation, you must be contacted at that phone number or the creditor must take other reasonable steps to confirm the identity of the person making an application for credit. As with any type of fraud alert, this is not an absolute guarantee that no new accounts will be opened because many creditors, particularly instant credit providers, may still disregard the alert. (See "Six Important Considerations and Limitations of Fraud Alerts" below)
What Happens When You Place an Active Duty Fraud Alert
In order to minimize the steps required for a U.S. consumer to place an alert, a call to any one of the three primary credit bureaus (Equifax, Experian, or TransUnion) to report fraud should result in the following actions:
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An initial fraud alert is automatically placed on your credit file at all three credit bureaus* for a period of ninety (90) days.
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You are automatically "opted-out" of pre-approved credit and insurance offer lists compiled and sold by the credit bureaus for two (2) years.
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Each credit bureau will process the request and forward a free copy of your credit report from that bureau for your review.
* Innovis is not included in this process and must be contacted separately to place a fraud alert.
FRAUDFacts Tip: Be certain to place a fraud alert on your credit file at each of three primary credit bureaus - Equifax, Experian, and TransUnion. Though these credit bureaus are supposed to share fraud alert information, (i.e. placing an alert on your file at the other two when you place an alert at one), this does not always happen and can dramatically reduce the effectiveness of the fraud alert. Don't forget to also place a fraud alert on your file at Innovis as well!
Six Important Considerations and Limitations of Fraud Alerts
Regardless of what you may have heard, a fraud alert is not an absolute guarantee that no new accounts will be opened in your name as many creditors, particularly "instant" credit providers, may still disregard the alert.
1. A fraud alert is only effective if your credit report is actually pulled and reviewed by a prospective credit grantor (and even then it may still be ignored). Many types of accounts can be opened in your name without the creditor ever pulling your credit report.
2. When you place a fraud alert, be certain to provide at least one telephone phone number for confirmations. When you do so, you must be contacted at that number, or the creditor must take other reasonable steps to confirm the identity of the person making an application for credit. Providing more than one telephone number increases the chances that you can be reached for confirmations.
3. Keep track of the date that you placed your fraud alert, and remember to renew the fraud alert at all three primary credit reporting agencies prior to the 90 day expiration.
4. If a prospective credit grantor does pull your credit report and does heed the fraud alert, the presence of the fraud alert will delay most instant credit applications. If you are applying for credit yourself, you should remember to inform the merchant or creditor at the time of application that a fraud alert has been placed.
5. Fraud alerts are rightfully considered a "Red Flag" by financial institutions and other creditors covered under the recently enacted Identity Theft Red Flags and Address Discrepancies regulation. The presence of a fraud alert on your credit file triggers a requirement for financial institutions and creditors governed by the regulation to take reasonable steps to confirm your identity prior to opening an account or conducting business with you, if the account opening or review process involves a review of your credit report.
6. Be aware that Fraud alerts can also potentially be a double-edged sword for fraud victims. Many banking and financial institution personnel are regularly instructed to not open accounts for persons with a fraud alert on their credit file. The rationale offered for this decision is typically that 1) the person is either already a victim of fraud or may have even been involved in fraudulent activity, and 2) he or she may return and attempt to falsely dispute otherwise legitimate transactions that may occur within the account on the basis that he or she is or was a victim of fraud. If you are a bona fide victim of Identity Theft or fraud, this practice can potentially cause further difficulties or delays when you attempt to close affected accounts and open new accounts.
Toll Free Numbers to Call for Placing Active Duty Fraud Alerts:
Equifax: 1-888-766-0008
Experian: 1-888-397-3742
TransUnion: 1-800-680-7289
Innovis: 1-800-540-2505
©Copyright 2008 by Michael Barnett. All rights reserved. Unauthorized use, copying, or distribution without permission is prohibited.
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