Credit Card Quick

International Credit Card Scam Busted by the Federal Trade Commission

Card Security

The Federal Trade Commission has once again thwarted a multi-million-dollar, international credit card scam.

This long-running international credit card scam was estimated to have net more than $10 million; but the interesting part is that credit card customers were charged no more than $10 in fake credit card charges, thereby allowing the thieves to get away with the scam for such a long period of time.

For four years the perpetrators charged unsuspecting credit card customers small amounts on their credit card and debit cards. It is still unclear how the thieves got the credit card customers, but the FTC thinks that they may have even gone as far as done credit checks on their victims to make sure the credit cards were legitimate.

This scam, along with the countless scams being busted nearly every day by the FTC, is a clear example of the extent to which credit card thieves will go to steal money. It is also a good time to alert credit card customers to these credit card scams so that we can all be more aware of our credit cards and how we can protect ourselves:

• Check your statement carefully, each and every month. Many of us get into the habit of paying our credit card bills each month and we don’t even take the time to really examine our statement. However, this case is a perfect example of ripping credit card customers off because they simply didn’t take the time to carefully read the charges on their statement.
• Understand credit card scams so that you can be better equipped to fight them. Credit card thieves, unfortunately, are staying one step ahead of the FTC and other cyber-crime-fighting organizations, so it is best to understand the lengths at which thieves will go to bilk people out of millions of dollars.
• Keep your receipts so you can compare them with your credit card statement each month. You may be charged a few dollars extra by a company and not even be aware of it unless you check the amount carefully against your receipt.

Credit Card Fraud and Identity Theft

Identity Theft

Credit card fraud and identity theft are serious crimes that have become quite prevalent in the United States. It’s a sad, unfortunate shame, and while little can be done to stop it, aside from prosecution once the damage is done and the perpetrator found, there is plenty one can do to protect themselves.

Identity Theft

Few other countries have as big a problem with this, as they do not use the system of social security numbers that we use in this country. This number, which we are warned to keep private, is readily available to anyone looking for it, simply because we are asked to use this as a standard form of secondary I.D. on just about every form and application we fill out, among other things. A person who is up to no good, can steal your identity, take over your life and do with it as they please, leaving you to pick up the pieces later on.

Credit Card Fraud

Credit card fraud in itself does not constitute identity theft. Still, the idea that some dishonest thieving individual has your card or number and is racking up charge after charge is still unsettling and can disrupt your life as much as identity theft can. It can be very difficult to try and get those charges off your bill and your back and to get everything back under your own control so that no one is using your account for their ill-gotten gains. Luckily, there are laws that protect honest citizens from this kind of thing. Still, once again, the damage is already done by the time prosecution occurs.

Beating Thieves at Their Game

Follow all the steps recommended for protecting yourself from identity theft. Shred those personal documents, don’t give out personal info over the phone or to unknown persons, keep your social security card protected and in a place where no one else can access it, etc. You can find many tips and tricks to protect yourself from identity theft by doing an internet search. The best resources will be from government entities, such as the FTC.

To safeguard yourself from credit card thieves, do the following:

• Check your billing statements closely every month and report any fishy activity immediately.
• Be responsible with your credit card. Don’t loan it out, and don’t leave it where someone could gain access to it without your knowing.
• Should your card come up missing for any reason, report it immediately.
• If you don’t intend to use a credit card, cancel the account and shred that card.
• Sign yourself up for e-mail alerts on card activity. Should someone have your card or number in hand, you’ll know it sooner and can take action fast.
• Use of the CVV (the little 3-digit number on the back of your card) is a good security measure. Many websites ask for this verification code to prove that you do, in fact have the card. The downfall? If someone else has your card, they have the CVV, and once you enter the CVV into a website or use it to verify some other purchase, well… anyone with access to the purchase info who also has shady intentions now has both your card number and CVV. There is a new piece of technology to the rescue, however. This handy little gadget, usually attached to your key chain, will randomly choose a new number every few seconds, based on certain factors, to act as your CVV for any given purchase. This is a great investment if you’re looking to protect yourself.

While you certainly cannot single-handedly put and end to credit card fraud and identity theft, you still have plenty of options for protecting yourself. Be proactive and don’t tolerate thieves who want to take advantage of your good name!

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.

Common Questions about your Credit Report

Credit Score

We all know that we must stay on top of our credit to maintain a strong FICO score, but how many of us actually do just that?

Your ability to obtain a mortgage, purchase a car or secure a credit card all relies on your credit rating. It is therefore of the utmost importance that you order a copy of your credit report.

Luckily, under the nationwide Fair Credit Reporting Act (FCRA), which is protected by the Federal Trade Commission (FTC), you are entitled to a free copy of your credit report from all three of the consumer reporting agencies – Equifax, TransUnion and Experian – once a year.

Now that you are armed with this information, you can begin the process of reviewing your credit report.

Q: What type of information appears on my credit report?

A: Your credit report should contain your personal information, such as your name, your address and your source of income, as well as all sources of credit. It will also report any bankruptcies, arrests or cases in which you were sued.

Q: What is a typical credit report comprised of?

A: The four sections of a standard credit report include: your personal, or identifying, information; your credit history; public records; and inquiries.

Q: What are public records?

A: Public records include such things as bankruptcies and law suits.

Q: What are inquiries?

A: Every time you apply for credit of any kind, it is typically recorded as an inquiry. Excessive inquiries do not look very good in the eyes of a creditor; therefore, too many inquiries can lower your credit score.

Q: Do I need to look at my credit report through all three credit reporting agencies, or is the information the same?

A: Each credit reporting agency has their own set of information, as well as their own credit rating for you, so it is important to review your credit report through all three credit reporting agencies.

Q: Who uses the information on my credit report?

A: The three credit reporting agencies – Equifax, TransUnion and Experian – sell this information to creditors, insurers and even your employer. They then use this information to determine your eligibility for credit cards, insurance and employment, among many other things.

Q: What if I find a mistake on my credit report?

A: If you find a mistake or an inaccuracy, you must immediately contact the credit reporting agency and file a report. It is then the credit reporting agency’s duty to research the problem and correct it, if needed.