LifeLock and Fraud Alerts Really Do Work
I decided to get an iPhone last month. I wasn't with at&t so I had to switch phone carriers. This gave me my first opportunity to see how my fraud alert was going to work.
The sales guy asked me for my social security number in a rather hush-hush voice and said I could write it down for him. I told him he could write it on the sidewalk out front because I was protected from identity theft by LifeLock. He immediately recognized the name and smiled but still kept my SSN to himself. Which was probably a good idea.
Having a fraud alert makes a request that any new creditor call me at the phone number I provided to be sure it's really me applying. Sure enough, within a couple of minutes of the at&t sales guy entering my info, my old cell phone rang.
A very nice lady started asking me a ton of questions. Things like: what was my last address, what is my mortgage payment and what is the most recent credit card that I applied for.
Me, being a bit of a scatter-brain, had some trouble. First I gave her my old street address, but she wanted my old PO Box. I kinda remembered that although I couldn't remember the zip code that went with it. She wasn't giving out any hints either.
So then, she asked me for the amount of my mortgage payment. I told her that was a trick question because I knew what my mortgage payment was but it also escrowed in my property taxes and homeowner's insurance. Those change every year and I never really memorize them because I just pay automatically online. So rather sheepishly, I gave her a number that I thought was close – like within $30…. ish.
Finally, she asked for my most recent credit card. Now I haven't applied for a new credit card in eight years. In the meantime, all the original banks have been bought out by others banks, so half the time, I don't know who I'm with. To make it even worse, it's a card that I never use. So after mumbling around for a bit, I finally came up with the right answer. I was beginning to think I was brilliant, but she took me down another notch by asking me what the credit limit on it was. Dang. I guessed a nice round figure.
Apparently I passed the test because I walked out with my new iPhone.
Just like LifeLock says on their website, the fraud alert works and is only a minor inconvenience to you but a major roadblock for an identity thief.
EDIT:
Instead of placing fraud alerts, LifeLock has a new feature called LifeLock Identity Alert™ System. It provides early notification by email, regular mail, and/or phone whenever they detect your personal information being used to apply for many forms or credit or services.
You can still place your own fraud alerts for free and renew them every 90 days at any of the credit bureau's website. You only have to do it at one site and they will pass on the notification to the others.
