What does the National Fraud Alert System do?

The National Fraud Alert System is designed specifically to help combat identity theft and fraud related to credit. One of its key functions is allowing military personnel to place alert notices on their credit files. This feature is particularly vital for service members who may be away from home and vulnerable to identity theft while they are deployed. By placing a fraud alert on their credit files, military personnel can take proactive steps to protect themselves from unauthorized access to their credit information.

The other options do not pertain directly to the purpose of the National Fraud Alert System. While credit monitoring services provide regular updates on an individual’s credit status, they are separate services provided by credit bureaus or third parties. Similarly, faster loan processing is not related to the fraud alert system, nor does it track credit card spending. The focus of the system is squarely on fraud prevention rather than tracking or monitoring.