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How to Protect yourself from Credit Card Skimming

Identity Theft

We all have to be extra diligent when it comes to credit card thieves and hackers. After all, we don’t want to become the next victim of identity theft.

In particular, credit card thieves are targeting consumers by “skimming” their information when they pay at the pump or hit the ATM.

What is skimming?

Skimming is accomplished when a credit card thief puts a special device over a credit card slot. These skimming devices, which fit inconspicuously over a credit card reader, are designed to capture your credit card numbers when you swipe your card.  In other words, a skimmer allows the credit card thief to capture your credit card numbers easily and quickly, and you are left none the wiser.

Where does skimming take place?

Skimming can take place on any credit card reader that isn’t controlled by the retailer. In other words, if a thief is capable of placing a skimmer onto a credit card reader, they can steal your credit card information. Some of the common places thieves place credit card skimmers are on ATMs and gas station pumps.

How can I protect myself?

The best way to protect yourself against skimming is to be aware of the look of the machine. If the card reader looks different from other nearby card readers, or if you notice anything resembling a loose card slot or glue residue on the machine, steer clear of it and alert the retailer.

You can also better protect yourself from the loss stemming from a skimming incident by using your debit card as a credit card. When you use your debit card as a credit card, you are likely protected from theft, and federal law prevents the credit card company from charging you more than $50 after you report a credit card theft incident.

You can also protect others from skimming by reporting any incident to the local police. If your credit card information was stolen at your local gas station, for example, it is best to file a police report so they can take the appropriate measures to apprehend the individual or individuals in question so other consumers won’t have to deal with the effects of credit card theft.

Where to Think Twice about Using your Credit Card

Identity Theft

Sure, we love our credit cards. They are practical and convenient, and they sure do beat the heck out of toting around cash. However, regardless of how much we love our plastic there are a few places where it may be best to keep it in our wallet.

• Unfamiliar ATMs – It is probably safe to use an ATM that is owned by a bank, but other types of ATMs commonly found at gas stations or convenience stores, for example, are best to avoid. This is because these types of ATMs are not as closely monitored as bank-owned ATMs and may be more susceptible to being hacked. For example, skimmers (small devices that are placed over an ATM card reader) may be installed by hackers onto these types of machines, thereby allowing the hacker to easily obtain your card’s numbers when you swipe it.
• Traveling vendors – It is best to avoid using your credit card when purchasing items from traveling vendors, like those you may see at shopping mall craft shows, flea markets and carnivals, as it may be extremely difficult (or even downright impossible) to track down the vendor if there is an error or discrepancy on your credit card. In addition, the likelihood of coming across an unscrupulous vendor is also much higher.
• Unfamiliar websites – With the influx of new websites each and every day, it becomes very hard to determine which ones are trustworthy and which ones are not. Because of this, it is usually best to only shop online with trusted websites. If you are unsure of the validity of a website, check it out online, as consumers are usually more than willing to post their experience with certain websites and companies. But don’t stop there; make sure the website you are shopping on is secure. The best way to determine whether your credit card information is fully protected is to look at the address of the page on which the retailer asks you to enter your personal information. In short, the web address should begin with “https” instead of “http.” Although most consumers merely looked for the closed padlock sign near the website address, it has been found that some unscrupulous websites simply inserted the padlock icon to fool consumers.

Baby Boomers Beware: Identity Theft is a Real Problem

Identity Theft

One thing is certain with identity thieves: they certainly know who to target.

In short, it is the large Baby Boomer population that may be the target of identity thieves, due to a number of factors. First, most of this population has money. Secondly, most of them have good credit. Third, they may have more free time on their hands.

The FBI, for example, reports that nearly 35 percent of the people who file identity fraud complaints with the Internet Crime Complaint Center are 50 or older. Because, let’s face it, this is where the money is.

The problem with identity theft and the retiree population is not limited to a thief stealing information from a mailbox. Instead, identity theft includes a number of scams that look to pull personal information or money out of an individual.

Mortgage Scams

Mortgage scams aimed at Baby Boomers are more than just a phone call. In fact, identity thieves have gone as far as to rent office space and turn their scam into a legitimate-looking operation. In short, these scammers are after social security information and other personal information begin written down by the individual on a fake mortgage loan application.

It is therefore best to avoid working with any lender with which you are not familiar. Instead, it is best to stick with local, established companies with a long history.

Looking to the Obituaries

When it comes to identity theft, thieves are merciless. In fact, it is now quite common for scammers to scan the obituaries for information about recently deceased individuals. For example, the birth date in an obituary could lead the thief to pull the death certificate, which then contains the deceased’s social security number. The thief can then, at least for a short time, open up credit card accounts in the deceased’s name and go on a spending spree.

It is best to avoid listing the birth date or year of the deceased individual; just include the age of death. You may also want to leave out other personal information, such as the deceased’s hometown.

Social Media Problems

Many retirees are turning to social media sites because they have more time on their hands. However, be very careful about putting any personal information on these sites, as identity thieves use them to find out when you are not at home so they can burglarize your home. Avoid posting pictures of your home or any information that details when you will be away from the home.

Easy Ways to Safeguard your Credit

Identity Theft

You’ve worked so hard to get an excellent credit score: you’ve paid your bills on time; you’ve kept your debts to a minimum; and you’ve kept your spending in check. It is therefore more important than ever to do what you can to safeguard your credit.

With identity theft running rampant in today’s society, it is crucial that you do what you can to protect yourself. And here’s how:

• Always take advantage of your free credit report. Few people know that they are entitled to a free copy of their credit report each year from all, three credit reporting bureaus (TransUnion, Equifax and Experian). Take advantage of this offer and carefully look over your credit history. Note that your credit history and credit score may differ quite a bit from one company to the next, so take the time to really review each of these reports. More importantly, immediately contact the appropriate credit reporting agency if you spot any errors or discrepancies.
• Always pay your bills on time. Don’t jeopardize your good credit score by failing to pay simple bills. Although they may always pay your credit card bills, mortgage and car note on time each month, many individuals don’t realize that delinquent utility bills can also hamper your good credit. So no matter what the bill, pay it on time, each and every month!
• Protect your personal information at all times. This may include shredding your bills, holding tightly onto your wallet when in public places and being selective regarding with whom you hand over your credit card. Many people unknowingly drop personal information in the garbage can and put their personal information – and their credit – at risk.
• Don’t shop online without setting up certain safeguards. Take care to only shop from trusted websites with updated security certificates, make sure your firewall and virus protection is up to date, and only use your credit card to shop online; not debit cards! Devote just one credit card for online shopping so that you can closely monitor the activity for unauthorized activity.

How to Protect yourself from Credit Card Thieves this Holiday Season

Identity Theft

‘Tis the season…to have credit card thieves steal you blind.

Sure, that sounds a bit pessimistic, but the reality is that credit card thieves are banking on the fact that you’ll let your guard down long enough for them to swoop in and steal your credit card numbers during the holiday season. Here’s how to stop them:

• Check out website security – Online shopping is certainly convenient and practical, but entering your credit card information over the World Wide Web can leave you financially vulnerable. If you want to take advantage of the great online holiday deals, remember to check your computer’s security, as well as the website’s security. Make sure your browser is secure by checking for the locked padlock sign near the address bar and by looking for the address to start with “https” instead of “http.” In addition, don’t shop from a website if you are not familiar with them; or, if you aren’t familiar with a website, take the time to read online reviews from other customers.
• Keep extra credit cards at home and take only what you need – When you’re in the midst of the holiday hustle and bustle, you may be vulnerable to pick pockets or purse snatchers. In order to decrease your chances of becoming a victim, carry only what you need. Remove most of the cash from your purse or wallet and carry only those credit cards that you plan on using during that shopping trip. The less you have in your purse or wallet, the less you will lose if you fall victim to a thief.
• Shop with one credit card – Complete your holiday shopping with just one credit card with a competitive, fixed interest rate. If you use just one card, you can better track your spending and charges, thereby allowing you to eliminate confusion between cards or billing mistakes from escaping your attention.
• Check credit card activity online and look for errors – Take advantage of your credit card’s website to check the activity of a card on a weekly (or even daily) basis during the holiday season. If you spot errors, you can deal with them immediately, instead of waiting to receive your monthly statement.

Should you Purchase Credit Card Monitoring Services?

Identity Theft

With all the scary stories of credit card and identity theft running rampant on the news these days, many of us feel rather vulnerable when it comes to your credit cards and the safety of our identity and personal information.

With that said, many consumers check their credit reports frequently as to ensure the safety of their identity. Many consumers also take it one step further and purchase credit monitoring services.

What are Credit Monitoring Services?

Credit monitoring services are paid services, through one of the three credit reporting bureaus: Equifax, Experian and TransUnion.  Credit monitoring services may also be provided through independent companies, such as Lifelock.

What do Credit Monitoring Services Do?

Instead of you, the consumer, checking your credit report for signs of non-authorized activity, the reporting agencies do it for you, with a price tag of around $60 to $180 per year. Credit reporting agencies, through credit monitoring services, monitor your credit report for any unusual changes and then alert you to these changes. The advantage of credit monitoring services is that you can catch any suspicious activity almost as quickly as it happens, thereby lessening your chance of being caught in an identity theft situation.

Lifelock, and companies like them, often go one step further when it comes to protecting your identity, as they review how your credit is being used and if your social security number has been compromised or used fraudulently.

Are Credit Monitoring Services Worth the Money?

According to a recent study by Javelin Research, the use of credit monitoring service has dropped off nearly 42 percent since 2008. Unfortunately, though, credit card and identity theft has risen dramatically during this time.

The truth of the matter is that most people do not think about identity theft until they have become victims themselves. Although consumers have several options when it comes to protecting their identity, paying for credit monitoring services may very well be the best defense against fraudulent credit card use and identity theft.

In addition to purchasing credit card monitoring services, you can also protect yourself by: shredding any and all personal documents; safeguarding your social security number and your social security card; and being selective about where and when you use your credit card.

How to Avoid becoming a Victim of Identity Theft

Identity Theft

Can you really avoid becoming a victim of identity theft? Perhaps not altogether, but there are several steps you can take to lessen your chances of having your personal identity hijacked.

There are perhaps two reasons why identity theft has become all-too-commonplace in today’s society: identity thieves are becoming more and more capable of using technology to access our personal information, and we use plastic for nearly everything.

We still want to enjoy using our credit cards and the freedom and flexibility that goes along with them, so here are a few tips that can help you avoid becoming the next victim of identity theft:

• Don’t abandon the use of your credit card, just become a bit more selective regarding where and when you use it. In other words, don’t shop from a website you don’t know and trust, and avoid using plastic in settings with which you are unfamiliar.
• Make it a weekly (or if you use your credit card frequently, daily event) event to check your credit card account. In other words, don’t wait for your statement to arrive to check the activity on your account. Thanks to the power of the Internet, we can create an account through the credit card company and check the activity on our card at any time of the day or night.
• Consider engaging a credit freeze on your credit report at all times. This will allow you to instantly become aware of any individual or lender that attempts to open another account or line of credit in your name.
• Check the security of your bank and make sure they have the most up-to-date fraud monitoring technology.
• Play it safe when it comes to your password, either for your bank card or your credit card. This may seem like a no-brainer, but it is vital to choose passwords that are not obvious. We often choose passwords that are easy to remember; unfortunately, these passwords are also ones that are quickly figured out by identity thieves.  Re-consider your passwords and change them, if necessary. In addition, if you think that your password may have been compromised, don’t waste time changing it, as it could spell trouble with your accounts.

Where Identity Theft Takes Place and what you can do to Protect Yourself

Identity Theft

Identity theft can take place almost anywhere, thanks to advances in technology and the increasing diligence of identity thieves. Because of the growing problem of identity theft in America, there is a good chance that, you, too will become the victim of identity theft at some point in your life.

However, even given the rampant incidences of identity theft, there are precautions you can take to better protect yourself from becoming a victim. One of the best ways to prevent identity theft is to simply become aware of the many ways in which identity thieves have found to steal your identity.

Here are some of the ways identity theft happens:

• Rooting through your trash – Yes, this is one of the most common ways identity thieves get a hold of your credit card information. The easiest way to ensure that a thief doesn’t come in contact with your personal information is to shred everything before it hits the trash.
• Fooling you through email – Many identity thieves are sending bogus emails to a great number of people, posing as their creditor and asking for information to verify an account. Always remember that your credit card company will never send you an email asking you for any type of personal information.
• Fooling you through the Internet – The next time you shop at your favorite online retailer, make sure the website address is legitimate, as there have been identity thieves that have actually produced copycat websites that look just like a trusted website, but are set up to do nothing more than steal your credit card information.
• Stealing your purse or wallet –  It begs repeating, but it is vital that you keep your wallet or purse close at hand anytime you leave the house. Most identity thefts merely take advantage of a good opportunity; namely, an individual that leaves his or her wallet or purse unattended.
• Skimming your credit card information – The next time you hand over your credit card to a waiter or sales clerk, pay close attention to where they are taking your card. Small devices, called skimmers, now enable identity thieves to quickly scan your credit card information before you even know it.

The Future of Managing Multiple Credit Cards

Identity Theft News

Are you managing multiple credit cards? Do you want to find an easier way to manage your credit?

If so, you may find a new design that will transform your credit card into a money manager quite practical. This new design, in short, will change the way electronic money transactions take place.

The Introduction of Card 2.0

Simply put, your ordinary credit card may, in the future, feature a paper-thin computer that will allow you to easily and effortlessly manage your credit.

The design, which will be referred to as Card 2.0, will be fully programmable and rewritable. Any type of information, including account information and payment information, can be changed by the user at any given time.

Recently unveiled at the DEMO Fall 2010 show in Santa Clara, California, this specialty consumer credit card will feature several buttons; each button is linked to a specific account. To use, simply press the button on the card that corresponds to the correct credit card account.

Once the button is pushed, the purchase will be deducted from the corresponding account. The account information is written onto the electronic stripe of the card.

Hidden and your Privacy

Card 2.0 will have another application, called Hidden, which may address problems with credit card fraud and identity theft. Hidden will feature five buttons on the face of the card. The display on the credit card will hide a portion of the credit card number and in order to fully view the credit card number, the user will need to enter a personal code to unlock the entire credit card number.

Once the code has been entered, the full credit card number will be written onto the electronic stripe, thereby allowing for in-store transactions.

In addition, the card’s numbers for Hidden will be erased from the electronic stripe, thereby protecting the consumer until the personal code is entered once again.

Card 2.0, although not currently available, may be a catalyst for changing the way we handle our credit and how we protect our personal information.

The Top Five Tips for Protecting yourself from Credit Card Thieves

Identity Theft

There are many sneaky routes credit card thieves are taking to steal our credit card numbers and go on a shopping spree. However, there are just as many credit card thieves that are merely looking for a good opportunity. In other words, let your guard down and you can be sure that a credit card thief will be waiting to pounce.

The fact of the matter is that most credit card thefts are crimes of opportunity. This means that, as a consumer, you need to do what you can to not give a credit card thief the opportunity to take your credit card or personal information and run.

Here’s what you need to know:

1. When shopping online, stick to trusted sites. If you are unsure about the online company or if you simply don’t know anything about them, it is probably a wise idea to steer clear of purchasing from them.
2. Speaking of online shopping, make sure you check and double-check your antivirus and firewall software, as well as the site’s security certification. Remember: all of these things need to be in place in order to be fully protected from online thieves.
3. If you do a lot of online shopping, consider devoting just one credit card to your online purchases, thereby making it easier to track your purchases and prevent unauthorized charges from slipping past you.
4. Keep your credit card in sight, especially in unknown areas or at unfamiliar retailers. Many thieves will use small devices, called skimmers, to catch your credit card information after you hand over your credit card for a purchase. Beware of a retailer who walks away with your credit card to complete your transaction.
5. Don’t just skim over your credit card bills. Instead, take the time to thoroughly check all charges. Many credit card thieves charge multiple, inexpensive items in an effort to go unnoticed, so make sure even the smallest charges on your credit card are accounted for.