A consumer reporting agency must include a fraud alert in a consumer report if the consumer has provided an identity theft report. True or false?

• A. True
• B. False
• C. Only if requested by the consumer
• D. Only for certain types of reports

Answer: (A)

Fraud alerts exist to protect people who report identity theft by making lenders take extra steps to verify a new credit application. When a consumer provides an identity theft report, the consumer reporting agency must place a fraud alert in the consumer’s file. In practice this is an extended fraud alert, which lasts seven years, designed specifically for identity theft victims. This requirement ensures the alert is included in the consumer report that lenders receive, helping prevent new accounts in the victim’s name. So the statement is true.