How can a consumer protect themselves against identity theft according to the FCRA?

A consumer can protect themselves against identity theft according to the Fair Credit Reporting Act (FCRA) by placing a fraud alert or opting for a credit freeze. Implementing a fraud alert notifies potential creditors to take additional steps to verify the consumer's identity before extending credit, making it more difficult for identity thieves to open accounts in the consumer's name. This serves as a warning sign to creditors that they should be cautious.

Additionally, a credit freeze allows consumers to restrict access to their credit report entirely, meaning that creditors cannot access it to approve new credit accounts. This is an effective way to prevent identity thieves from opening new lines of credit in the consumer’s name because the freeze must be lifted by the consumer before new applications can be processed.

While notifying the police, monitoring accounts, and enrolling in identity theft protection services are valuable steps in response to identity theft or for general vigilance, they do not provide the proactive preventative measures that a fraud alert or credit freeze offers. The former options address the issue after it has occurred, while the latter actively prevents it from happening in the first place.