Explain why someone might want to put a ""red flag"" on their own credit report.

A person can put a "red flag" on his own credit report if he suspects that a fraudulent activity may have occurred on his account.

Explanation:

Credit Report - This report shows a summary of a person's financial transactions. For example, when you order online through your credit card, this transaction is reflected into the credit report.

Red Flags Rule - This is a periodic assessment that institutions commit in order to ensure the safety of financial transactions of people. It also prevents identity theft.

Normally, the institution will put a red flag on your credit report if they suspect a fraudulent activity. However, as a consumer, if you suspect that somebody is using your account then you may put a red flag on your credit report. Doing this will not only prevent identity theft but will also block fake transactions.