Credit Card Fraud is on the Rise

Credit card fraud has increased significantly in recent- Your personal information can be taken from
years, according to law enforcement officials andinformation you submit on the Internet.
consumer protection organizations like the Public- Fraudsters may locate your discarded receipts by
Interest Research Group and Privacy Rightslooking through your trash can. If your name or
Clearinghouse. More consumers own credit cards nowaccount number appears on the receipt, they can use
than in the past, and criminals are constantly looking forit to their advantage.
new ways to tap into accounts. All of this means- A clerk at a store might make an extra copy of your
cardholders need to protect their credit cards nowcredit card, or take the numbers from it.
more than ever before.- Your utility bills, credit card and bank statements, tax
Perhaps the most obvious form of credit card fraudinformation, and new checks can be stage-managed
takes place in the form of theft. Even if you don't loseto land up at the wrong place.
your card or have it stolen, however, your credit card- You may get a phone call or email offering a free trip
account could still be in danger. It is not uncommon foror a cheap travel package. To receive it, however,
criminals to steal your credit card identity - details suchyou have to submit your account number. Once you
as the number on the card and the expiration date. Ado, the source can start using your card number to
stolen account number is the first step in a series ofmake unauthorized purchases.
credit card fraud incidents. Unfortunately, cardholdersAfter collecting your personal information, fraudsters
may not be aware of the theft until the unauthorizedmay get the mailing address on your credit card
activity starts showing up on the bills.account changed by calling your creditors and opening
Identity Theftnew lines of credit. In some cases, they might do more
Identity theft occurs when your personal information isthan just rack up purchases on your card. They might
gathered without your authorization and used foropen bank accounts in your name, apply for loans in
criminal purposes. It occurs when someone stealsyour name, or set up new phone accounts. The list of
information that identifies who you are, such as yourpossibilities is nearly endless.
name, address, date of birth, or social security number.New Credit Card Crimes
Sometimes you need to submit this information whenOne of the newest methods that identity thieves are
applying for credit, opening a new bank account orusing is referred to as skimming. In this technique, a
making a purchase. When someone taps into thesesmall hand-held electronic device called a skimmer is
accounts or transactions without authorized permission,used to gather the information embedded in the
your information could be in danger. According to amagnetic strip of the card. With a simple swipe of your
Federal Trade Commission survey issued in Octobercard in the hand-held skimmer, all your personal
2007, an estimated 13.5 percent of U.S. adults (30.2identification information is collected in just a second. It
million consumers) were victims of one or more identityis then used to create a counterfeit card or make
fraud incidents in 2005.purchases online.
Credit card thieves can come in two forms. The firstCrime perpetrators are continually trying out different
of these are complete strangers, and the other kindtechnologies to carry out identity theft. Fortunately,
falls into the category of people you know. Thismany organizations are fighting the battle against credit
second group can include anyone from friends andcard crime by developing new encryption techniques.
family members to neighbors, co-workers, or anyoneBusiness are doing all they can to help individual
that you have an established relationship with. Moreconsumer keep their private information a closely
than half of the identity theft cases that occur areguarded secret.
committed by criminals that have establishedDespite various improvements and efforts, almost
relationships with their victims.anyone can be a victim of identity theft. And it can be
This doesn't mean that you should be wary of all ofnerve-wracking to find unauthorized charges on your
your friends and in-laws. You should, however, bepersonal credit card bills. Most credit card companies
aware of certain warning signs. Here are a few of thewill cover the amounts charged to your card in
common ways that identity theft happens:fraudulent cases. Still, it is in your best interest to do all
- Someone may steal your wallet or purse. When theyyou can to protect your credit card, as well as your
get a hold of it, they have instant access to your creditpersonal identification information. Prevention is always
cards and bank information.better than the cure!