What is a fraud alert and when should I place one?

A fraud alert is a free flag on your credit file that tells lenders to take extra steps to verify your identity before opening new credit. You place it with one bureau, which must notify the other two. A standard alert lasts one year; an extended alert (for confirmed identity-theft victims with a police or FTC report) lasts seven years, and active-duty military can use a special alert. Unlike a freeze, an alert doesn't block access to your report — it just adds a verification step — so it's lighter-touch but less ironclad. Place one if your wallet is stolen, your data shows up in a breach, or you spot suspicious activity. Many people use a freeze for strong protection and add a fraud alert for an extra layer. If you've been hit by identity theft, start a recovery plan at IdentityTheft.gov.