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Credit Card Fraud is on the Rise: How you can Protect yourself from becoming the Next Victim

Identity Theft

The numbers are quite staggering: credit card fraud flew to the number-one spot in 2009 in terms of identity theft. In particular, credit card fraud accounted for nearly 75 percent of all identity theft cases last year.

This jump in credit card fraud represents an amazing 63 percent increase from 2008. In addition, the number of identity theft victims rose 12 percent to 11.1 million.

Other numbers reported by Javelin’s annual identity theft fraud report include:

• Total losses from identity theft rose 12 percent to $54 billion in 2009, up from $48 billion in 2008.
• Theft amounts, per victim, were approximately $4,481 in 2009.
• Debit card fraud dropped to 33 percent of all identity theft, down from 35 percent in 2008.

It’s no surprise that identity theft is steadily increasing, given the amount of time that individuals spend on the Internet, notebooks and PDAs.

So, what can you do to ensure that you’re not the next victim of credit card fraud?

• Use one credit card exclusively for online shopping. This will allow you to better monitor the card and the activity on the card. You may also want to request a lower credit limit on the card to prevent a credit card thief from going wild on your credit card.
• Make sure all of your credit cards have ample credit card theft protection. Carefully read the terms and conditions of your credit cards so that you are aware of your responsibility should your credit card be stolen.
• Never, ever, ever make a purchase online unless you have the most up-to-date firewall protection.
• Pay close attention to merchants when handing over your credit card. Many of the identity thefts of today can steal your credit card numbers in a matter of second using small, handheld devices called skimmers. Many times, this theft is done when the merchant walks away from the counter to complete your purchase.
• Use the power of the Internet to check and recheck your credit card accounts. Easy-to-navigate credit card websites allow us to check our current balances, view recent transactions and pay online. Use this technology to keep a close eye on your credit cards so that if your credit card account is compromised then you can deal with it sooner than later.

Fighting Credit Card Fraud: What you need to Know

Identity Theft

A sobering fact in today’s technology-driven society is that fraud – particularly credit card fraud – is an increasingly serious problem that many of us will fall victim to at one point or another.

From stealing your credit numbers to your identity, credit card thieves are craftier than ever, which can cost you big.

The following are the most frequent types of credit card fraud, and what you can do to prevent it:

Skimming –

• What is it – Skimming is a fairly new type of credit card fraud that happens when you hand your credit card over to make a purchase. The thief takes your credit card and, in a matter of seconds, steals your credit card numbers using a small, handheld device called a “skimmer.”
• What you can do – Pay close attention to anyone that takes your card for a purchase, particularly those individuals that must walk away in order to complete your transaction.

Phishing –

• What it is – Phishing is credit card fraud that happens via email. Phishing are usually bulk emails that are sent to consumers. These emails, which usually disguise themselves as the individual’s bank or credit card company, ask consumers to provide their personal information. They may appear to be legitimate, even possessing the company’s logo or replicating the company’s web site.
• What you can do – Never, ever respond to an unsolicited email requesting your personal information. Banks and credit card companies will never ask for your personal information via an email message. If in doubt, contact your credit card company or bank directly to inquire about the validity of the email. In addition, make sure you type your bank’s address so that you aren’t re-routed to a fake website who can gain access to your credit card number or other personal information.

It is important to understand that, although credit card thieves are finding new ways to steal consumers’ identities every day, you can protect yourself by never responding to emails, by never providing your personal credit card information to anyone over the phone unless you have initiated the call, and by always paying close attention whenever you pass off your credit card to anyone.

Beware of Credit Card Scammers Asking for your Security Code

Identity Theft

We all know to be aware of credit card scammers, but sometimes a new scam comes along that simply throws us for a loop – and scammers are counting on it.

Many of us already know that retailers are now using the security codes on the back our credit cards as a way to curb credit card fraud. For example, the last time you made a credit card purchase over the phone or online the retailer likely asked for your credit card’s three-digit security code, as well as the card’s number and expiration date.

This is done to prevent credit card thieves from placing unauthorized charges on your credit card account without your knowledge. In other words, having a credit card holder’s credit card numbers is now simply not enough for scammers; they must also have the card’s security code to break into your account.

The Newest Scam and how it Works

Credit card scammers have now found a new way to fool credit card customers into giving up their three-digit security code (surprise, surprise), so here’s what you need to know about this scam so it doesn’t happen to you.

The scam goes something like this: a credit card thief (who is already in possession of your credit card number) calls you, claiming to be from your credit card company; probably from the security or fraud division of your credit card company. The caller then recites your address to ensure that you are the cardholder, and lets you know that your card may have been stolen, or that unauthorized charges were placed on your account.

The caller then asks you to verify that you have the card in your possession. And, of course, the only way to do this is by reciting your security code to the caller. Bingo – you’ve just been scammed.

It is important to understand that, at no time, will your credit card company ask you to reveal any private information, including your security code. If you have any doubt about the legitimacy of a call, simply hang up and contact the credit card company directly.

Newest Credit Card Scam Targeted at Veterans

Identity Theft News

We all must be aware and diligent when it comes to protecting our credit, as credit card scammers seem to be keeping up with the best efforts of industry fraud experts.

It is important to note that no one – and I mean no one – is safe when it comes to credit card scammers.

Case in point: the Department of Veteran Affairs recently sent out a warning to all veterans, as the latest credit card scam appears to be targeting this group.

The scam against veterans works when a scammer calls a veteran, posing to be a VA worker. The scammer then proceeds to ask for the veteran’s credit card information so that he/she can update the veteran’s prescription information. The scammer often informs the veteran that the VA has changed the process of dispensing prescriptions, so they need a credit card to do so.

Veterans need to understand that the VA will NEVER ask them to disclose their personal or financial information over the phone.

Although this scam is not new, the Department of Veteran Affairs has noticed a sharp increase in this type of scam as of late. And credit card scams are just one of countless scams targeted at veterans at any give time. Other scams targeting both active military and veterans include life insurance scams, payday loan scams, car title scams, repair scams and loads of fraudulent discounts.

How to Protect yourself from Credit Card Scammers:

• Never reveal personal or financial information to ANYONE unless you have initiated the call.
• If you are ever suspicious of a call, simply hang up and contact the company directly to address the validity of the call.
• Never open or respond to unsolicited emails, even if they claim to be from a trusted source. Banks, credit card companies and the VA will never ask for your personal information via email.
• Only do business with trusted sources.

How to Protect yourself Against Online Credit Card Fraud

Identity Theft

In today’s technology-driven world, the idea of credit card fraud can be downright frightening. Thieves are finding new ways to commit credit card fraud every day, often quicker than credit card companies and government entities, such as the Federal Trade Commission, can keep up.

Many consumers have fallen victim to credit card fraud through fraudulent websites and thieves looking for an easy way to obtain credit card information. The sad thruth is that many consumers unknowingly offer up their credit card information to online thieves. This is often done because consumers continue to make purchases off of sites that are either phony or unsecure.

How does this happen, and what can you to reduce the likelihood that you’ll be the next victim of online credit card fraud?

• Never, ever give out your credit card numbers online if the site isn’t secure. And don’t trust that small padlock icon, either, as thieves have found ways to simply duplicate it on unsecure websites. Instead, shop only through trusted sources, and make sure the website address begins with “https” instead of just “http.”
• Always make sure your firewall and virus software on your computer is up-to-date, and don’t make a single purchase online unless you know that you are fully protected.
• Avoid purchasing off any online retailer that has no permanent address or phone number.
• If you are still unsure about the online company in question, contact your local Better Business Bureau.
• Never respond to an unsolicited email from a company offering you a “great” deal.
• Avoid using your debit card for online purchases, as this can put your bank account in jeopardy. Instead, use your credit card to make purchases, as most credit cards have protection plans against unauthorized purchases.
• Contact your credit card company IMMEDIATELY if you suspect fraudulent activity. Contact the three, national credit reporting agencies, as well, and ask them to flag your credit report for any suspicious activity.

It is important to remain educated and diligent when it comes to your private credit card information, as this can mean the difference between convenient, online credit card transactions and a great deal of grief.