Here's ways to avoid
fraud and identity theft... Credit and charge
card fraud costs cardholders and issuers hundreds of millions of dollars each
year. Some of the most common tricks used to gain access to your personal information
and financial records are listed below. By being aware and following some simple
advice, you can protect yourself from fraud and identity theft. Watch
Your Trash Discarded receipts
and credit card statements are like gold to an identity thief. Digging through
your trash is one way for crooks to illegally get your account numbers and other
personal information to begin passing themselves off as you and destroy your great
credit record. SOLUTION:
Shred all documents, monthly statements, carbons, receipts, etc. before depositing
them into your trash can. Play it safe by using a shredder for all of the above
regardless of whether they contain compromising information. And don't forget
to shred all credit card applications you receive. Dishonest
Clerks Another way a thief can access
personal information is through a dishonest clerk who makes an extra imprint of
your credit or charge card. A cash register attendant or waitress could easily
copy your credit card information without your knowledge. They can then pass it
on to another person or uses the information themselves. SOLUTION:
Never allow a clerk to take your credit card out of sight. Many restaurants now
offer at-the-table scanning that safeguards your number. If it is not available,
hand carry the card to the register yourself and wait until the transaction has
been completed before returning to your table. Appeals,
Rewards and Innocent Responses A phone
call announcing you've won a grand prize sweepstakes or a free, all expenses paid
trip, is often the bait used by thieves to snag the most gullible and sometimes
the most savvy people among us. The catch is that you must verify your personal
information to receive your prize. While you wait for delivery, the crook is out
spending your money and racking up debt in your name. Legitimate companies don't
call you to ask for a credit card number over the phone. SOLUTION:
Stay alert and be suspicious of offers that seem too good to be true. Never give
out any information unless you have initiated the call and are 100% sure that
the information is required. A genuine winner will never be required to compromise
themselves to receive their prize. Credit
Card Fraud on the Internet Although credit
card fraud is much more common when placing an order by phone, the Internet is
a breeding ground for gaining personal data. Never respond to emails that request
your credit card information via email or to requests that you visit a particular
website to verify personal or credit card information. These are called 'phishing'
scams; legitimate organizations do not redirect you nor do they ask for sensitive
information without you first having initiated a relationship. SOLUTION:
Never provide your credit card information on a website that is not a secure site.
When a company that you do business with contacts you via email, don't respond.
Type in the URL to their site and do your business direct. Other
Tips to Safeguard Your Credit and Identity - Sign
your cards as soon as they arrive and always keep them in a secure place, whether
in your home, car or purse.
- Carry your
cards separately from your wallet, in a zippered compartment, a business card
holder, or another small pouch.
- Memorize
your PIN number and never store it with your credit card.
- Shield
your credit card number so that others around you can't copy it or capture it
on a cell phone or other camera.
- Keep a
record of your account numbers, their expiration dates, and the phone number and
address of each company in a secure place.
- Never
write you account number on a check or envelope.
- Save
receipts to compare with billing statements.
- Never
sign a blank receipt
- Open bills promptly
and reconcile accounts monthly, just as you would your checking account.
- Report
any questionable charges promptly in writing to the card issuer.
- If
you move, notify your credit card issuers in advance.
In
the Event of Fraud or Theft... If you
suspect credit card fraud or your credit cards are lost or stolen, contact the
issuer(s) immediately. Most credit card companies have toll-free numbers and 24-hour
service to deal with these emergencies. You may also be asked to sign a statement
under oath that you did not make the purchase(s) in question. By
law, once you have reported the loss or theft of your credit card, you have no
more responsibility for unauthorized charges. Your maximum liability under federal
law is $50 per credit card and many credit card companies will waive that fee
for their better customers. The FTC works
for the consumer to prevent fraudulent, deceptive and unfair business practices
in the marketplace and to provide information to help consumers spot, stop, and
avoid them. To file a complaint or to get free information on consumer issues,
visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
The FTC enters Internet, telemarketing, identity theft, and other fraud-related
complaints into Consumer Sentinel, a secure online database available to hundreds
of civil and criminal law enforcement agencies in the U.S. and abroad.
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