How does the FCRA help protect consumers from identity theft?

The Fair Credit Reporting Act (FCRA) plays a significant role in protecting consumers from identity theft, particularly through the ability for consumers to place fraud alerts and credit freezes on their credit reports. A fraud alert is a notification that warns potential creditors to take extra steps to verify a person's identity before extending credit. This helps reduce the chances of identity thieves opening accounts in someone else's name. Similarly, a credit freeze prevents creditors from accessing a consumer's credit report, thereby blocking any new credit from being issued in the individual’s name until they lift the freeze. These measures are proactive protections that significantly enhance consumer security in the face of identity theft.

While the other choices mention relevant actions that could be part of identity theft prevention or response, they do not carry the same preventive measures endorsed by the FCRA as the option regarding fraud alerts and credit freezes. Reporting identity theft to the police is important, but it is a reactive measure rather than a proactive protection. Free identity theft protection services may not be directly linked to the FCRA, and while limiting access to credit reports is a key component of consumer privacy, it does not specifically target identity theft in the same practical way that fraud alerts and credit freezes do.