I received a fraud alert from my credit card company over the weekend. They sent me a text message, email and robo-call. I was glad to get them.
Somebody had stolen my business credit card number to charge $125 worth of pizza. I hope they enjoyed the food, because as soon as I responded to the alert and closed my account, they couldn't use my card anymore for their thievery.
Among all the things that credit card companies have done in recent years -- both good and bad -- fraud alerts are really helpful. Although you never have to pay for fraudulent charges, it's always useful information to know when someone is stealing your credit.
Here's how my fraud alert read:
"This is an email alert from the Fraud Detection Unit...As a security measure, we routinely monitor account activity to prevent fraudulent use of our customers' accounts. During a recent review, we identified activity on your account that may be related to fraudulent usage and need you to verify this activity as soon as possible.
You can review this activity immediately by logging in to our website. If you are not currently enrolled for online access, simply use the Setup Online Account Access Now link on our site and follow the short process to enroll."
It was really easy to close down my account. It involved a short phone call on a Friday. On Monday, FedEx had delivered a new card. It was that simple.
Most major credit card companies offer fraud alerts. According to creditcards.com, there are three types of fraud alerts, which are also offered by the three major credit reporting bureaus:
1. Initial fraud alert. "If you’re concerned your financial information has been or may be compromised, but don’t know for sure, an initial fraud alert is probably best for you. It does not require you to prove that a breach or theft has happened or file a police report.
2. Extended fraud alert. Your next step up is an extended fraud alert, which is also free and lasts seven years. It entitles you to two free credit reports from all three credit reporting agencies in the first year.
You must send it by mail, but you need to send it to only one of the three credit bureaus. The one you send it to is required to notify the other two.
3. Active duty military alert. If you’re in the military and deployed, all three credit reporting companies offer protection via an active duty military alert.
As the name implies, this helps protect your credit and minimizes your risk of fraud and ID theft while you’re deployed. It is similar to an initial fraud alert, except that it lasts one year and your name is removed from all pre-approved or firm offers of credit or insurance for two years."
To avoid future fraud, avoid giving your card number over the phone or in emails. Always deal with "secure" independently certified Web sites when ordering. And keep an eye on your credit report, which will cost you nothing.
