How do the three CRAs respond to a fraud alert?

• A. They delete the alert after 30 days.
• B. They notify employers.
• C. They place the alert in the consumer’s file and require lenders to verify identity more thoroughly before issuing credit.
• D. They automatically approve credit.

Answer: (C)

A fraud alert triggers lenders to take extra steps to verify your identity before approving new credit. When you request a fraud alert, the three credit reporting agencies place a notice in your credit file. This signals lenders to go beyond the usual checks, typically by contacting you at the phone number or contact details on file and requiring additional identity verification before issuing credit. This added verification helps prevent someone else from opening accounts in your name.

The alert isn’t about notifying employers, it isn’t automatically approving credit, and it isn’t removed after a short period by default. An initial fraud alert lasts about one year (with longer options available if identity theft is confirmed).