With identity theft being so rampant and identity thieves becoming more and more resourceful (have you heard the one about the people who look for shredding and try to tape it together?) protecting your credit might feel like a bit of an uphill battle, especially when you’ve followed everyone’s advice and still have unauthorized charges show up on your credit statements or whole new accounts appear on your credit report. It’s enough to make you scream “That’s it! From now on I will only deal in cash and I am keeping it in my mattress!”

Trust us; we understand where you are coming from.

If you are very concerned about identity theft, or if you feel like you might be at risk for fraudulent activity, you might want to consider adding a fraud alert to your credit report. A fraud alert is basically a way of letting creditors know that you think something fishy might be going on and that anybody seeking credit in your name must verify that, well, they are you before the credit can be authorized.

There are three basic types of fraud alerts: the initial security alert, which lasts ninety days, an active duty alert which lasts for one year and an extended fraud victim alert which lasts for seven years. When you are trying to decide which alert works best for you, you should know that some of the longer options will want to see proof that your identity is in jeopardy.

The basic idea behind the fraud alert is this: When someone attempts to open an account in your name, a notice pops up for the credit company telling them that they need to verify your identity before granting credit to the applicant. The credit company then calls you to verify your identity and make sure that you are the person trying to open the account.

It’s sort of like those James Bond emulating Chase commercials that have been running on television the last few months.

Placing a fraud alert on your account is easy. You can usually start the process online or with a quick call to one of the three major credit reporting agencies. Of course, there are some drawbacks, namely that it kind of puts a damper on the “but I want it now!” of applying for a credit card—especially when you are offered those “no money down, no interest” credit lines in department and electronics stores.

For most people the ninety day fraud alert is sufficient to cover any nagging feeling that comes from wondering if you remembered to shred your last credit card statement before you took the trash to the curb (or dumpster) or if you lost your credit card (or wallet) and didn’t notice its absence right away. It shouldn’t be used because you don’t want to cough up the money for a decent shredder.

Your credit is incredibly important and you need to do everything you can to make sure that it (and your identity) is protected.