Credit Card Quick

How to Avoid Identity Theft at Retailers

Identity Theft

We all love to use our credit cards at our favorite retailers, but there may be a chance that your next transaction could be compromised by an identity thief. Before you head out the door to go shopping, read this article to learn about some of the ways you can protect yourself at the register.

• The next time you grab a bite to eat, choose to pay for your meal at the register instead of giving your credit card to the waiter. There have been many cases where waiters took credit cards and stole credit card information using small devices called skimmers. You can reduce the risk of this from happening simply by paying for your meal for yourself at the front register.
• When you give your card to a retailer, get it back in a reasonable amount of time. If the employee has it longer than you deem necessary, bring it to the manager’s attention and get your card back ASAP.
• When you have your card in your hand while in line at the register, keep the numbers hidden from other individuals. It is quite common for identity thieves to snap pictures of credit cards using a cell phone; and this act can be completed quickly and go unnoticed by the consumer.
• If a store does not have security cameras at the registers, move on to a different retailer. Although PCI data security standards require retailers to have security cameras at areas where credit card transactions take place, many do not, thereby leaving the retailer vulnerable to credit card theft, especially by employees.
• Avoid leaving a tip on your credit card. Service employees may use this opportunity to add an additional tip, and it often goes unnoticed by the consumer. Instead of leaving a tip on a credit card, opt to instead leave a cash tip.
• If you use an ATM or card reader, check for signs of tampering. In particular, look at the card reader closely and do not use it if you see anything out of the ordinary, such as tape holding it on, as this could indicate the presence of a skimming device.

How to Prevent Identity Theft While Away at College

Identity Theft

If your child is on his way to college, you have likely armed him with a laptop, a credit card, a debit card or other source of income. But a trip to college can leave your child susceptible to identity theft. It is therefore extremely important to not only leave your child with plenty of well wishes, but a plan of action to prevent identity theft, as well.

Here are ways your college student can help protect himself from identity theft:

• Lock the door room door. This can’t be overstated, as this single piece of advice can prevent most thefts while away at college. Many college students inadvertently leave their dorm room door open, even if it’s just for a few minutes to greet a friend or fetch their meal, and find their belongings – and often their identity – stolen.
• Mark all personal property clearly. Personalizing your laptop in a visible way is a great way to deter theft, as a thief won’t want to be caught with an easily identifiable laptop.
• Don’t leave your personal computer or laptop vulnerable; use password protection. Your laptop should be protected with a password, as to prevent another individual from quickly logging on and obtaining your personal information.
• Watch what you reveal on social networking sites.– Many identity thieves look for individuals who inadvertently share personal information with others on social networking sites, such as Facebook and MySpace. As such, never share your birth date, address or any other information that can be used against you.
• Write down your laptop’s serial number, make and model and keep it in a safe place so you can provide this information to campus police if your laptop should be stolen. You may also be able to file an insurance claim for your stolen laptop, and you will need this information to do so.
• Get a shredder and use it. One of the easiest ways for an identity thief to obtain your personal information is by simply looking through the trash. It is therefore always best to shred any personal or financial information, such as bank and credit card statements.
• Ask the college about network security and learn how to protect yourself and your personal identity found on your computer.

Your Identity is Stolen: What Should You Do?

Identity Theft

If you find your identity has been stolen, it is important to act swiftly to minimize damages. But where do you start?

1. Contact your local police department and report the theft. Once the theft has been reported, the police should be able to provide you with a copy of the report. A copy of a police report will become very important as you and the credit bureaus and creditors perform investigations regarding the identity theft.
2. Contact all three credit reporting agencies (TransUnion, Experian and Equifax) to report the theft. They will likely request a copy of the police report, so send them along. Each of the credit reporting bureaus will do a couple things at this point: They will freeze your credit report and place a fraud alert on it; and they will open a fraud investigation on your behalf. Under the Fair Credit Reporting Act, the credit reporting bureau must investigate the claims within 30 days. Any information they find on your report that cannot be verified with the appropriate creditors must be removed within these 30 days.
3. In addition to sending the credit reporting agencies a copy of the police report, send a written letter, as well, stating in clear terms what happened. Often times, a letter from you will provide future creditors with information needed to understand your credit status.
4. Any creditors or lenders associated with the identity theft should be immediately contacted. They, too, will likely want a copy of the police report. They will also typically perform their own investigation of the matter. Ask the credit reporting agencies if they will also contact the appropriate creditors and provide them with information regarding their investigation.
5. You may be unable to open new credit accounts or take out new loans during this time. Although this may be quite inconvenient, it is important to allow the credit bureaus and the police to finish their investigations and clear your name of the fraud.
6. Going forward, it is important to keep the fraud alert on your credit report and check your credit report frequently over the next year.

The Downside to Debit Cards

ATM

There is a large group of Americans who have taken to using their debit cards on a daily basis. In fact, many consumers have begun using debit cards over credit cards because they feel they can better control their spending using this method. If you are using a debit card, it pays to understand that, although they can help keep us on budget, they can also cause financial trouble. And here’s why:

• You could be more vulnerable to identity theft – Although your debit card may come with its own protection against unauthorized charges, the hassles that would result from your card being stolen are many. In short, consider if someone accesses your account and drains it of your money, you will likely be facing innumerable charges, including bounced check fees and overdrawn fees. Again, your bank will likely help resolve these issues, but having a drained bank account – even for a day or two – could cause serious hassles.
• You could get burned with overdraft fees – Although the Federal Reserve prohibited banks from charging overdraft fees on debit cards purchases as of August 2010, you may have opted for your bank’s overdraft protection feature, which means your bank will extend you a line of credit if you overdraw your account. However, this doesn’t come free, and you could end up paying big in overdraft fees as a result.
• Your recurring payments could become a problem – Many people use their debit cards to sign up for recurring payments, such as for their gym membership or shopping club. However, many people have found that, even after they cancelled their membership, they continued to be hit with recurring payments. It is therefore extremely important to keep an eye on your monthly bank statement when you have recurring payments; or, better yet, opt to pay with a credit card, instead, as you won’t need to worry about overdrawing your account due to unexpected expenses. Keep in mind that using auto bill payments for utility payments could create these same types of problems, as well, so it pays to keep a close eye on your monthly payments, even if they are being automatically debited from your account.

The Importance of Shredding for Your Identity

Identity Theft

What do you do with your personal bills, credit card statements, medical records, and cancelled checks? Do you throw them in the garbage or send them to the shredder?

If you don’t have a good shredder in your possession, you could be setting yourself up for identity theft. In general, if you have something in your possession that you wouldn’t feel comfortable having someone else look at, shred it.

In fact, identity theft criminals need very little information to steal your identity. For example, with your Social Security number in hand, criminals can apply for everything from credit cards to personal loans. And you’d be surprised to see exactly what information your garbage is giving to identity thieves. If you don’t think criminals would go through the effort of diving into your dumpster to retrieve your personal information, think again.

The good news is that purchasing and using a shredder involves very little hassle on your part. Simply by throwing your personal paperwork into a cross-shredder, you can significantly decrease your chances of becoming the next identity theft victim.

From households to businesses, everyone should make a point to shred personal information before discarding it. So, what should you shred?

• Bank statements
• Canceled or blank checks
• Credit card offers
• Credit card statements
• Financial statements
• Personal bills
• Legal papers
• Insurance statements
• Income tax records
• Medical bills

Shredders are a nice convenience, and are priced quite reasonably, too. Most office supply stores offer a nice variety of shredders that range from $20 and up.  Although there are a few shredders that are designed for business use and much more expensive, a general shredder with cross-cut capabilities can do the job.

The difference between a strip-cut shredder and a crosscut shredder is that a strip cut shredder shreds paper into strips. And, depending on the width of the cut strips, the information may still be obtained by the identity thief. A crosscut shredder, on the other hand, cuts the paper in different directions, thereby providing more security. The only other difference in price usually comes down to the number of pieces of paper the machine can take at one time and the size of the shredder’s motor.

The Top Four Ways we make it Easier for Identity Thieves to do Their Dirty Work

Identity Theft

The truth of the matter is that the things we do – or don’t do – actually make the job of an identity thief much easier. It may seem rather odd that we are actually helping a thief do his dirty work, but it’s true! Here are the top four ways we often make the job of an identity thief an easier one:

1. We do our banking from a public computer or through a Wi-Fi network. The only way to better protect your personal identity and account information is to bank from the privacy (and safety) of your home. Public networks and public Wi-Fi areas are a hot spot for identity thief activity, as it is much easier for them to gain access to a number of things (through key logging malware), such as account numbers, passwords and other personal information. So, the next time you’re sitting at your favorite coffee shop, leave your online banking and shopping tasks at home.
2. We use unfamiliar ATMs. Using a local ATM for which you are familiar protects you because you are familiar with what the ATM looks like and what the card reader looks like, thereby allowing you to spot anything out of place, such as a card skimmer. Using unfamiliar ATMs does not afford you this luxury, thereby setting you up for identity theft.
3. We pay our credit card bills without looking closely at the statement. There have been many studies that have shown that credit card customers pay for bogus charges all the time, simply because they can’t be bothered with taking the time to examine their credit card statements. In fact, some credit card thieves charge just a few dollars to your card because they know that, chances are, you won’t spot the charge.
4. We toss our receipts. Even if you look closely at your credit card statement each month, do you really remember the exact total of your purchases? Because most consumers don’t hang onto their credit card receipts long enough to compare them to their statement, the door is left wide open for credit card thieves.

You Don’t Have to become the Next Identity Theft Victim

Identity Theft

Identity theft has grown by leaps and bounds on a national and international level over the last, few years and, by the looks of it, 2011 may be just as challenging for individuals trying to protect their identity and their credit.

You don’t need to stand idly and helplessly by, however, as there are a number of things you can do to reduce the likelihood that 2011 will be the year your identity is stolen and your credit is ruined. Here’s what to do:

• One of the most common types of scams involves “phishing,” which is essentially thieves who fish for your confidential, personal information and credit card account information. Phishing works when a thief sends an email to you that appears to be an email from your credit card company or bank. These phishing emails usually are warnings that there is something wrong with your account; a problem that needs immediate attention.  The email will encourage you to click on a link that will supposedly take you to the institution’s website, but will instead take you to a phony website. The website will then encourage you to enter your personal information to verify your account. It is then that the thief captures your confidential information, which is then used to access your good credit.

Your best bet is to never, ever respond or open a warning email that claims to be from your bank or credit card company. If there are any problems with your account, you can be assured your institution won’t contact you through email. If in doubt, delete the email and immediately contact your bank or credit card company.

• Because many scam artists are quite good at what they do, they have been known to fool people using fake websites. Therefore, it is always best to type in the web address of your favorite websites instead of simply Googling them before making a credit card purchase. Also, be aware that all security safeguards are in place before making any credit card purchase or entering any personal information via the Internet. And never make any credit card purchases unless your anti-virus/firewall protection is up to date and active!

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.

The Best Time to Use your Credit Card

Introduction

Many consumers enjoy the benefits of a credit card every day, while others use theirs more selectively, for large purchases or while traveling. Although the frequency at which you use your credit card is a very personal one, there are a few occasions when it is always a good time to use your credit card:

• During a financial emergency – If your furnace breaks and the weather is supposed to fall below freezing, what do you do? Because not many people have access to a large sum of cash – especially in a pinch – credit cards are a popular choice for getting us through life’s unexpected financial emergencies. Credit cards may also have lower interest rates and more liberal repayment terms than financing a large purchase through a company, so it pays to bring out your credit card during these times.
• When making a large purchase – If you have a credit card with a low, fixed interest rate or a credit card with a low, promotional rate, it may make good financial sense to use it to make a large purchase. For example, if you have a low, promotional rate on your credit card and you know you can pay off your purchase during the promotional period, you may end up being able to make monthly payments without interest. In other words, it may be a great opportunity to make that large purchase you’ve wanted!
• When traveling – When traveling, especially abroad, it just doesn’t make sense to carry cash. If you lose cash, you are not protected. We love credit cards for traveling because you are protected again credit card theft or identity theft, and you automatically get the conversion rate when traveling to countries with different currencies. Plus, the convenience of a credit card is unmatched when traveling! From booking hotels and airlines to car rentals and dinner reservations, a credit card is the most practical — and often the only accepted — form of payment.  Don’t forget that credit cards may also serve as car rental insurance, and can be easily replaced if lost or stolen.

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.