---
title: Consumer Report Fraud Alerts
description: Learn how to protect your financial institution from liability by identifying and complying with fraud alerts on credit reports. Stay informed with the latest updates and expert insights.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [Consumer Report Fraud Alerts](https://blog.bankerscompliance.com/en/consumer-report-fraud-alerts)

 Written by [Kevin Edwards](https://blog.bankerscompliance.com/en/author/kevin-edwards) | Aug 6, 2024 3:48:39 PM

When it comes to fraud alerts on credit reports, financial institutions want to ensure they not only identify these alerts when they appear but also that they are doing what’s required. The [Fair Credit Reporting Act](https://www.ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act) states, *no user of a consumer report that includes an initial fraud alert or an active duty alert…may establish a new credit plan…unless the user utilizes reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request*. Failure to comply with these requirements might result in your financial institution being liable for extending unauthorized credit.

Kevin explains more in the video.

Published  
2024/08/06

 

[View full post](https://blog.bankerscompliance.com/en/consumer-report-fraud-alerts)

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