Fair and Accurate Credit Transactions (FACT) Act Practice Exam 2026 - Free FACT Act Practice Questions and Study Guide

An initial fraud alert lasts one year. It’s designed for someone who suspects identity theft. When this alert is in place, lenders must take extra steps to verify your identity before extending credit in your name, which helps slow down potential fraud and gives you time to detect and respond. You can renew the alert when the year ends, and there’s also an extended fraud alert that lasts seven years if identity theft is confirmed with an identity theft report.