Fraud Alert vs. Credit Freeze: How to Protect Your Credit

October 21, 2025
Hand pointing to lock symbol, depicting securing credit with a fraud alert and credit freeze
Fraud Alert vs Credit Freeze

Understanding Fraud Alerts and Credit Freezes

In today’s digital world, your personal information is more vulnerable than ever. From data breaches to phishing scams, millions of Americans each year find themselves victims of identity theft. When that happens, your credit report is often the first place the damage shows up. Knowing the difference between a fraud alert vs. credit freeze—and when to use each—can make all the difference in protecting your credit and your financial future.

Both fraud alerts and credit freezes are free tools offered by the three major credit bureaus: Equifax, Experian, and TransUnion. They exist to help consumers guard against unauthorized credit activity. However, they work in different ways. Understanding these differences—and how to set them up properly—can save you time, stress, and money.

The Federal Trade Commission (FTC) explains these tools in its Consumer Advice article titled Credit Freezes and Fraud Alerts. Let’s take a closer look at what they do and how you can use them to keep your credit safe.

What Is a Fraud Alert?

A fraud alert is a cautionary flag added to your credit report, indicating to potential creditors that they should verify your identity before issuing new credit in your name. Unlike a freeze, a fraud alert does not block access to your credit file—it simply triggers extra scrutiny.

Think of it as placing a notice that “someone may attempt to open credit in this person’s name—check with them first.” Because the file remains accessible, you can continue normal credit activity without interruption.

What Is a Credit Freeze (Security Freeze)?

A credit freeze, also called a security freeze, is a stronger measure. It prevents new creditors from accessing your credit report entirely until you lift or “thaw” the freeze. With a freeze in place, nobody—including you—can open a new credit account until you remove it.

Placing or lifting a freeze is completely free, and it doesn’t affect your credit score or your ability to use existing credit accounts. You can lift it temporarily when you need to apply for credit, rent an apartment, buy insurance, or undergo a background check.

You don’t have to wait until after your information is stolen to use this tool. Anyone can freeze their credit at any time for any reason.

Fraud Alert vs. Credit Freeze: The Key Differences

FeatureFraud AlertCredit Freeze
PurposeWarns creditors to verify your identity before opening new accountsBlocks access to your credit report entirely
Who Can Place OneAnyone suspecting identity theftAnyone, anytime
Duration1 year (renewable) or 7 years (for verified victims)Until you lift it
CostFreeFree
Effect on Credit ScoreNoneNone
Credit File AccessStill viewable by creditors with your consentCompletely restricted
Best ForSuspected fraud or data breachConfirmed identity theft or long-term protection

In short: a fraud alert is a warning system, while a credit freeze is a lockdown.

When Should You Use a Fraud Alert?

A fraud alert is ideal when you believe your information might be at risk but you still need to use your credit. For example:

  • You’ve received notice of a data breach.
  • You misplaced sensitive documents.
  • You noticed suspicious account activity.

It’s easy to activate and provides an extra safeguard without restricting your ability to open legitimate credit accounts.

When Should You Use a Credit Freeze?

A credit freeze is best for those who want maximum protection and aren’t planning to apply for new credit soon. Consider freezing your credit if:

  • You’ve been a victim of identity theft.
  • Your Social Security number or other data was exposed.
  • You want long-term, set-and-forget protection.

Because it’s indefinite, a credit freeze is often the strongest preventive step against future fraud.

Can You Have Both a Fraud Alert and a Credit Freeze?

Yes, you can. In fact, the FTC confirms that you can place both a fraud alert and a credit freeze at the same time. However, most consumers find that one tool—typically a credit freeze—offers all the protection they need.

How Fraud Alerts and Credit Freezes Protect Against Identity Theft

Both options are designed to make it harder for scammers to open new credit accounts in your name. They help:

  • Block or delay unauthorized credit applications
  • Alert lenders to verify your identity before issuing new credit
  • Reduce risk of fraudulent accounts harming your credit score
  • Prevent repeated misuse of stolen personal information

These tools are free, easy to set up, and highly effective when used early after a breach or fraud attempt.

How to Put a Fraud Alert on Your Credit Report

If you suspect identity theft or your personal data may have been exposed, here’s how to put a fraud alert on your credit report:

  1. Choose one credit bureau to contact.
    You only need to reach out to one of the three major credit bureaus. That bureau is legally required to notify the others to place the alert.
  2. Provide identifying information.
    This includes your name, date of birth, Social Security number, and current address.
  3. Select the alert type.
    You can choose between an initial, extended, or active duty alert (explained below).
  4. Save your confirmation.
    Each bureau will send written confirmation once the alert is active.

Once your fraud alert is placed, lenders will be required to verify your identity before approving any new credit in your name.

Types of Fraud Alerts

Initial Fraud Alert (1 Year)

This alert is for consumers who suspect potential fraud or data exposure. It lasts for one year but can be renewed as needed. When you place an initial alert, you’re also entitled to a free copy of your credit report from each of the three bureaus.

Extended Fraud Alert (7 Years)

For verified victims of identity theft, an extended fraud alert offers more comprehensive protection. It lasts seven years and removes your name from marketing lists for unsolicited credit and insurance offers for five years. You’ll need to provide an FTC identity theft report or a police report to qualify.

Active Duty Fraud Alert (1 Year)

This alert is designed for active-duty servicemembers who want to protect their credit while deployed. It lasts one year and can be renewed for the length of your deployment. Active duty alerts also remove you from marketing lists for new credit or insurance offers for two years.

Additionally, active duty servicemembers and National Guard members can sign up for free electronic credit monitoring to detect problems early.

How to Remove or Renew a Fraud Alert from Your Credit Report

Once you’ve recovered from potential fraud or no longer feel at risk, you may want to remove or renew a fraud alert:

  1. Contact one of the credit bureaus—just as when you placed it.
  2. Provide identity verification such as your Social Security number and photo ID.
  3. Submit your removal or renewal request.
    • Initial alerts expire automatically after one year.
    • Extended alerts expire after seven years but can be renewed with proper documentation.
  4. Save documentation confirming the change.

If you still want protection but don’t want to maintain the alert, you can always place a credit freeze instead.

How to Freeze Your Credit

If you prefer a more secure option, here’s how to freeze your credit at each bureau:

  1. Contact all three credit bureaus individually.
  2. Verify your identity.
    You’ll need your full name, date of birth, address, and possibly a government-issued ID.
  3. Create a PIN or password.
    You’ll use this to temporarily or permanently lift the freeze.
  4. Receive confirmation.
    Each bureau will notify you once your credit file is frozen.

How to Lift or “Thaw” a Credit Freeze

If you need to apply for a loan, mortgage, or new credit card, you can temporarily lift your freeze:

  1. Contact each bureau separately.
    Each one controls its own freeze status.
  2. Use your PIN or password to confirm your identity.
  3. Specify the duration or recipient.
    You can lift it for a set time (e.g., 24 hours) or for a specific creditor.
  4. Re-freeze when done.
    Once you’ve completed your application, you can put the freeze back in place.

Credit freezes remain in effect indefinitely until you choose to lift them.

Additional Ways to Protect Your Credit from Identity Theft

Beyond placing a fraud alert or freeze, you can further protect your credit with a few key steps:

  1. Check your credit reports regularly.
    Visit AnnualCreditReport.com to get free weekly reports from each bureau.
  2. Set up account alerts.
    Enable notifications for logins and large transactions.
  3. Use strong, unique passwords.
    Add two-factor authentication for sensitive accounts.
  4. Opt out of pre-approved offers.
    Visit OptOutPrescreen.com to reduce mail-based identity theft opportunities.
  5. Report identity theft quickly.
    Go to IdentityTheft.gov for step-by-step recovery plans.

How a Consumer Protection Lawyer Can Help

Placing a fraud alert or credit freeze can prevent further damage, but they don’t fix the harm that’s already done. If identity theft has resulted in credit report errors, collection activity, or denied loans, legal help may be necessary.

A credit lawyer can:

  • Demand that credit bureaus correct fraudulent or inaccurate information.
  • Enforce your rights under the Fair Credit Reporting Act (FCRA).
  • Communicate with creditors and collection agencies on your behalf.
  • Pursue damages if your consumer rights were violated.

At Vullings Law Group, LLC, our attorneys help victims of identity theft restore their credit and hold negligent companies accountable.

What to Do If Your Credit Report Contains Fraudulent Accounts

If you find accounts you didn’t open:

  1. Contact the creditor to report the fraud.
  2. File an identity theft report at IdentityTheft.gov.
  3. Dispute inaccurate information with each credit bureau.
  4. Place a new fraud alert or freeze to stop further misuse.
  5. Seek legal help if the bureaus or creditors refuse to correct the errors.

Under the Fair Credit Reporting Act, credit bureaus must investigate and remove false or unverified information within a reasonable timeframe.

Key Takeaways: Fraud Alert vs. Credit Freeze

  • A fraud alert warns lenders to verify your identity before issuing credit.
  • A credit freeze locks your credit report entirely until you lift it.
  • Both are free, do not affect your score, and are easy to manage.
  • Use a fraud alert for suspected exposure; use a freeze for confirmed theft.
  • Regular monitoring and legal support can help you recover faster if fraud occurs.

Need Help Fixing Your Credit After Identity Theft?

If your credit has been damaged by fraud or identity theft, you don’t have to handle it alone. The attorneys at Vullings Law Group, LLC will advocate on your behalf.

Contact us today to learn how we can help you reclaim your identity and restore your credit the right way.

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Posted in Identity Theft