Which statement about fraud alerts is true?

• A. It lasts 2 years
• B. It lasts 1 year
• C. It lasts 5 years
• D. It lasts 7 years

Answer: (B)

Fraud alerts are a consumer protection tool that adds extra verification steps for lenders before opening new credit in your name. The standard initial fraud alert lasts one year. You place it by contacting one of the major credit reporting agencies, and that agency must notify the others so the alert shows on your file nationwide. If you’re a victim of identity theft and provide appropriate documentation, you can obtain an extended fraud alert that lasts seven years, which imposes even stricter verification by lenders. The one-year duration is the true statement for the typical fraud alert; the longer seven-year period applies only when identity theft has been documented.