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Funny, I just called to put a Fraud Alert on my credit report. I encourage everyone to do it - so this way reputable lenders are supposed to call you when they'
by EGreg 6y ago
Funny, I just called to put a Fraud Alert on my credit report. I encourage everyone to do it - so this way reputable lenders are supposed to call you when they're trying to open an account in your name. An attacker would have to port your SIM card as well...
However, all the information I was providing to set the alert, or remove it, is the exact information that any lender would receive on their application. The system if so horribly broken security-wise, I am shocked there aren't more accounts being opened left and right by people who got them from applications emailed to thousands of lenders over the years.
- sfink 6y agoNote that a Fraud Alert expires after a year, so you need to keep renewing it.
- YeBanKo 6y ago> I encourage everyone to do it - so this way reputable lenders are supposed to call you when they're trying to open an account in your name. Reputable lender is something like an honest car salesman. Often consumers deal with middlemen and brokers that aren’t bearing the cost of fraudulent transaction. Isn’t it what partially what caused financial crisis of 2008? Loans were given to people with no income and one, two or even three existing mortgages. Everyone’s incentive was to earn the commission and sell it further misrepresenting low grade bonds as high grade.
- EGreg 6y agoWell, I think the fair consumer reporting act (FCRA) criminalizes the act of opening an account in someone else's name without their permission and having done absolutely no due diligence. Maybe it's not criminal but you wouldn't be able to actually get them to pay the debt later. Am I wrong?
- YeBanKo 6y agoI am not sure what penalties are for such negligence, but in any case such fraud happens and a burden to correct or monitor is on the consumer.