Credit Card Fraud - 5 Tips To Prevent It Happening To You

You had a great weekend. You and your best friendthese abuses quickly when they review their
went shopping the mall. At the mall, you picked upstatements. Some people assume the credit card
some cash at the ATM and you some great bargainscompany's records are accurate. They may even
at a couple of sales. Afterward, you went out forassume they made the purchase when, in fact, it was
dinner and drinks to discuss the week's events andan identity thief. Normally, identity thieves who prey
gossip about the rest of the crowd. After dinner, youupon credit cards make as many purchases as they
gave your credit card to the waitress, signed the bill,can in the days immediately following the theft. They
and went home for a good night's sleep.can quickly reach your credit limit and often exceed it.
On Monday, life gets back to normal, and the jobYou find out about it when your purchases are
beckons. But this Monday is different. With today's mailrefused by the company or when the debt collector
is your credit card billing statement. Relaxing fromcalls.
work, you review the statement. What's this? ThereHaving a little of your personal information gives
are purchases on the statement for things you knowaccess to the rest of your information. Identity thieves
you didn't buy. And the balance is through the roof!often misrepresent themselves, calling your bank or
What is going on?credit card company with a piece of personal
You call the credit card company to find out what'sinformation to learn more about your accounts. When
happened. They are helpful but not very sympathetic.this happens, you become even more vulnerable.
They note you're near your credit limit and suggestPretending to be you, they can transfer money out of
you may a hefty payment this month. They don'tyour accounts, change your address, and apply for
understand. You did NOT make those purchases.mortgages or loans. They may even rent apartments
What can you do now?or apply for jobs, masquerading as you.
If you've been through this before, you know you'veIf you think you've become a victim of identity theft,
been a victim of a crime. Call it identity theft or credityou should immediately take action to stop the crime
card fraud, it's illegal, and it carries penalties IF theor maybe even catch the thief:
criminal gets caught. Somehow, someone has gotten1. Immediately file a police report. Do not pass go. Do
hold of your personal financial information. They'venot wait a day or two. As soon as you're aware of
used your credit and your credit record to steal fromfraudulent purchases or misrepresentations, contact
both you and the credit card company. The problem is,your local police. You can also call the local U.S.
now the credit card company wants you to pay theAttorney's Office. Identity theft is often considered a
bill. If you don't, it will hurt your credit score and make itfederal crime, depending on the circumstances. When
more difficult to get loans at a good rate or open ayou've made your report, be sure to get and keep a
new account in the future. You're in a jam, and thecopy of it so that you can provide the information to
criminal who stole your identity is out partying on youryour bank and creditors.
good credit.2. File a report with the postal service. This may help
How could this have happened? Was there someoneyou find out where goods were delivered and prevent
standing behind you at the ATM, observing you enterthe continued use of a bogus address.
your PIN for cash? Or did the waitress leave your3. Notify the credit bureau. Immediately inform at least
card unattended out on a counter at the restaurant?one of the three major credit reporting agencies
Did you forget your card at the restaurant? Better(Equifax, TransUnion, or Experian). You may qualify for
check your wallet to be sure. You feel violated, as ifa free credit report. You can also freeze your credit
someone had broken into your home. And this criminalreporting. That way, you will be alerted if anyone
doesn't have a face or a name. You have no ideamakes a credit inquiry or tries to open a new account
who or where the identity theft is. And you don't havein your name. There is a small fee for freezing the
a clue about what to do about it.report, but it's well worth it to protect further abuses.
Criminals like this commit identity theft by getting4. Notify your bank and all your creditors of the crime.
access to your personal information. They can useClose your accounts and reopen them so that you
your birth date, your social security or driver's licensechange all your account numbers. If they'll agree to do
number, your account numbers, your PINs, and yourit, assign a special password to your account so that
passwords to sneak into your accounts and rob you.transactions can't be processed without your express
In 2003, around 10 million people were victims ofauthorization. And make sure that check verification
identity theft, and it cost them a total of $5 billioncompanies are aware of the problem so that they will
out-of-pocket. It also cost merchants and financialnot authorize the use of fake or stolen checks.
institutions $50 billion in that year. Each victim of identity5. Change your PINs and passwords immediately. If
theft ended up spending from $500 to $1200 and fromyou must keep a written list of them, keep that list
30 to 60 hours of personal time trying to resolve theunder lock and key, and don't share it with anyone. If
problem. And these thefts took place over a three- toyou keep them in an electronic file, be sure to
six-month period.password protect the file. When you change your
How can they get away with this malicious crime? It'spasswords, use new ones that combine letters,
an increasing problem due to our wonderful technologynumbers, and symbols. And for heaven's sake, don't
and the internet. Often, buyers and sellers don't haveuse the standard birth date, anniversary, or pet's name.
personal face-to-face contact. Transactions takeThink of something unusual, something people who
place over the internet or telephone. The seller doesn'tknow you won't likely guess.
see the identity thief and can't identify them. All theIdentity theft is a serious, and increasing, crime. No one
criminal has to do is give them a different shippingis immune. If you become a victim of this callous crime,
address from your billing address. Some identityyou should act immediately to stop the activity and to
thieves even submit change of address information tohelp law enforcement catch and prosecute the
your bank and credit accounts, making it more difficultperpetrator. Be sure that every company with which
for you to spot unauthorized transactions.you have financial dealings is aware of the problem.
Why don't people find out about identity theft sooner?Alert them quickly and get their cooperation in stopping
You may be surprised, but most people don't checkand catching the thief.
their statements as soon as they get them. They mayWe've all heard the nightmare stories from victims of
set them aside, making payments on the balanceidentity theft. Tales of expenses and time lost to
without reviewing the purchases and giving the thiefrepairing good credit abound. In the most extreme
even more time to run up a big tab.cases, identity thieves commit other crimes using their
Even when the theft is discovered, it's very difficult tovictim's personal information, so you can even get in
find the perpetrator. They're using your address andtrouble with the law as a victim of identity theft.
information. Bogus shipping addresses may go to aBe vigilant. Be suspicious when it comes to your
post office box or postal service. They may even gofinancial information and accounts. Guard your
to a non-existent address. All the thief has to do isinformation carefully. Review financial documents as
monitor for deliveries.soon as you receive them, and follow up immediately if
Another reason it's hard to prevent identity theft onyou find problems. You may not be able to control
your credit cards is that no one knows about it until theevery aspect of your financial record, but you can
monthly billing statement goes out. As mentionedtake many common-sense steps to protect it and
before, only the most diligent credit card holders catchprevent identity theft from making you the next victim.