How Transunion, Experian and Equifax Work to Prevent Credit Report Fraud?
While credit report from the three major credit reporting agencies namely, Trans Union, Equifax, and Experian form the basis of credit rating of any prospective borrower, a major threat to genuine reporting is fraud played in respect of credit reports. Several steps are taken by the reporting agencies to prevent credit report fraud so that innocent clients do not suffer unduly.
Some of the widely used methods to prevent credit report fraud are as follows:
Hiding Digits in Card Account and SS Number
All the three credit reporting agencies hide some of the digits in credit card account number as well as from the social security number of the prospective borrower. In absence of this basic information, it becomes very difficult for the hackers to indulge in identity theft.
Regular Updating Database
They update their database at regular intervals and make checks and cross checks so that the database remains unaffected or is not full of faulty and obsolete data. Such steps could be effective for protecting the interests of credits as well as debtors and can go a great way to prevent credit report fraud. Continuous monitoring also ensures maintenance of integrity of the database effectively.
Coordination with Law Enforcement Agencies
To prevent credit report fraud, all the three major credit reporting agencies maintain close coordination with the law enforcement agencies. At the same time they make sure that any agency trying to access consumer credit information available with them provides details of their purpose that should be permissible as per the law of the land. Without such legal purpose specification, no information would be provided to any business enterprise or individual.
Careful Client Selection
All the three credit reporting agencies have put in place mechanism to ensure that only reliable and reputable business houses are accepted as their clients and to whom they can divulge the credit information. It is an effective method to prevent credit report fraud and at the same time they also put up several security barriers so that unscrupulous hackers cannot brake through their database to access the reports of people enlisted.
In addition to above methods, all the three major credit reporting agencies encourage consumers to follow the following steps.
Steps for Credit Report Fraud Victims
If someone has been a victim of fraud in respect of his or her credit report, such person should consider put a security freeze on his or her credit file with the credit reporting agency. Another way to prevent credit report fraud is to add a 7-year extended victim statement to credit report.
Other Fraud Prevention Methods
Some of the methods that could prove very useful to prevent credit report fraud are to inform the creditors while documenting all the contacts. It is also extremely essential that the borrower who is suspecting fraud understands the entire process comprehensively. Creditors usually have their own unique method of handling fraud cases and it would be good for the borrower to have a copy of the investigation report after the same is complete.
Follow Up to Prevent Fraud
No method can prevent credit report fraud unless and until the process is meticulously followed up and the user reviews his or her credit reports on regular basis. It would also be good keeping a record of all correspondences so that the track could be maintained.
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