What are fraud alert and credit freeze?
Fraud can happen with anybody from rich to poor. With technology, it is very easy for fraudsters to play such frauds with people. At first, let us understand fraud alert Vs credit freeze to understand the difference between the two-
A fraud alert is extra security provided to the lenders or the creditors for verification before issuing or providing the facility of credit. It provides an alert to the credit card companies to let them know that the customer might have been a victim of cheat and fraud so that they can provide you with the credit.
On the other hand, a credit freeze is applying restriction to the credit details and report for security purpose or when face with credit theft. This makes it difficult for the thieves to unveil and reveal your credit account details and other reports. This saves you from theft and doesn’t affect your account as it is temporary, and you can lift the frozen lock whenever you want after seeking help from the credit department.
A fraud alert will need to verify you for the identification purpose so that no thief gets access to your credit account, whereas a credit freeze is initiated by you done for the same purpose. Between fraud alert vs credit freeze, one measure might be taken by the credit card company and the other by you.
What are the uses of a credit freeze and a fraud alert? Is it necessary?
These different measures make sure that your credit account remains safe and secure. It makes sure not to reveal your personal data to strangers and thieves. These measures are taken to take care of your privacy and maintain the confidentiality of your personal details. These work with the application of minimal restrictions, verification and identification process. It can be reversed after your account seems safe and normal again.
All of this is done for the safety of your money as it makes sure that your money that has been earn with a lot of difficulties and hard labour and time investment remains safe. It makes sure that you remain tension free of mischievous activities and thieves who are trying to access your personal data, details and information. These thieves might have their eyes on your money and cause any present and future trouble and chaos.