A ___________ is triggered by a request from a consumer who asserts a good faith suspicion that he or she has been or is about to become the victim of identity theft.

Prepare for the Fair Credit Reporting Act (FCRA) Test with targeted questions and explanations. Hone your understanding of FCRA regulations and principles. Ace your exam confidently!

An initial alert is a protective measure established under the Fair Credit Reporting Act (FCRA) designed specifically for consumers who express a reasonable belief that they may have been or are likely to become a victim of identity theft. By placing an initial alert on their credit report, consumers alert credit reporting agencies to take extra precautions when processing credit requests that might be made under their name.

This alert serves as a warning flag that prompts creditors to verify a consumer's identity before extending credit, thereby mitigating the risk of identity theft. The initial alert usually lasts for 90 days and can be renewed by consumers to continue enforcing vigilance over their credit profiles.

The other options refer to different types of alerts provided under the FCRA, such as active-duty alerts for service members deployed away from home, which serve distinct purposes not related specifically to consumer reports of identity theft. An extended alert is another layer of protection designed for consumers who have experienced identity theft and wish to go further in securing their credit report, lasting for up to seven years. Therefore, the choice of an initial alert is precisely aligned with the context of a consumer's good faith suspicion of potential identity theft.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy