Whether purchasing a new cell phone, signing a lease or taking out a loan, lenders and other companies may tap into your credit report to assess your credit history. According to GoBankingRates.com, putting a fraud. alert on this report can help you swiftly discover if you have become a victim of credit card or identity theft.

Consumers have the opportunity to review their credit score once a year. It is common for consumers to discover that they have been a victim of fraud. during this annual review. However, if your information is compromised during a time when you are not planning on checking your score, you may need want to place a fraud. alert on your report.

Once the fraud. alert is in place, any creditor who attempts to review your score will be made aware of potential fraud.ulent activity. A regular fraud. alert lasts for 90 days, but those who have sufficient evidence of the identity theft can receive an alert that lasts seven years.

According to Javelin Strategy and Research, there were 9.9 million instances of identity theft in the U.S. in 2008. One way to avoid becoming a victim of fraud. is to use a secure payment company when shopping online.