Info Credit fraud alerts

FRAUD ALERTS "Place a fraud alert on your credit reports and review your credit reports," is the first tip in the Federal Trade Commission's brochure "Take Charge: Fighting Back Against Identity Theft" (downloadable from www.ftc.gov).

This is one of the most-recommended identity theft remedies, but what exactly does a fraud alert do?

"Not enough," said Kerry Smith, a consumer lawyer for the National Association of State Public Interest Groups. Mainly it means that for 90 days any potential creditor has to take precautions to verify your identity before opening new accounts in your name. Not only is 90 days a short time, the standards for verifying a consumer's identity are not clearly defined.

An "extended fraud alert," on the other hand, remains on your credit report for seven years. The extended alert requires creditors to contact you if anyone wants to open an account in your name.

That's better - and it won't derail your credit - but it's tough to procure. Consumers need to provide "a copy of an official, valid report filed by the consumer with a federal, state or local law enforcement agency," according to the F.T.C.

So when reporting data theft, don't just call your bank; contact your local police precinct and file a copy with the F.T.C. (877-438-4338 ).