Consumer Credit Fraud
Credit Fraud and Identity Theft can happen almost anytime or anywhere to the unwary consumer
ID theft is at an all time high and many forgers find it easy pickings in the United States in obtaining the information they want. Forgers will
falsify personal documents for many reasons: to defraud businesses, to defraud consumers, to hide employment or citizenship status, to commit a
violent crime and for terrorist activities. Most forgers limit their crimes to stealing non-voided checks or credit card slips from mailboxes
and garbage.
Credit card forgery has become the most common crime. Credit card fraud is costing us over a billion dollars yearly. There can be a lot of effort
that goes into creating a false identification to match stolen checks and credit card numbers but today's technology driven society has helped by
giving the criminals the ability to do it easier. False identification can also be used to apply for credit at stores or even to buy new and used
vehicles. The typical forger relies on the sense of urgency, or long lines, to simply hurry clerks into accepting their stolen checks and bogus
credit cards. They also rely on under training and youth and they are usually very good at what they do to distract workers at the cash out counters.
The success of all of this credit fraud results in increased costs of retail goods for all of us. Criminals can be foiled though, make sure to destroy the following items prior to throwing them away: checks, deposit slips, identification papers, personal information, credit card numbers, and other important documents.
Forms of Credit Fraud
While theft is the most obvious form of credit and charge card fraud, it can occur in other ways, as well. Thieves can use your card number (without holding the actual card) in a variety of ways:
- A lover or friend may ask you to cosign or complete a credit application for his/her use, only to leave you responsible for the charges after the relationship ends (this is a common and willful form of credit theft)
- Dishonest clerks can use card imprints to increase their tips, cover personal store purchases, and even pocket money from cash registers
- A "friend" may borrow your card for an agreed purpose, and then make additional unauthorized purchases
- Internet retailers have increased or even repeated billing charges despite the consumer's authorization for a single transaction
- Kids use stolen or traded credit card numbers to purchase on-line Internet services-while being protected from prosecution by the use of an anonymous Email provider
- Large forgery operations have even applied real card numbers and names to credit card "blanks"
- Card slips and billing statements can be used to make unauthorized charges on your card. Such charges include: long distance calls, catalog purchases, Internet services, phone-sex charges, and other purchases
- People get letters which describe free vacations or other prizes available by calling an out-of-state number - Of course, a credit card number is necessary to pay some excuse for a fee
Tips to protecting your identification and credit
Here are some suggested tips for you to follow to help protect yourself against credit and charge card fraud. Instruct any
other person who is authorized to use your account to take the same precautions.
- Destroy pre-approved credit offers that you don't want
- Don't write your Social Security number on checks to merchants
- Draw a line through blank spaces above the total when you sign card receipts
- Avoid signing a blank receipt, whenever possible
- Carry your cards separately from your wallet, and carry only the cards you use
- If you have questions about a company, check with your local consumer protection office or the Better Business Bureau before making a purchase
- Keep a record of credit card numbers, their expiration dates, and the phone number and address for each issuing company in a secure place
- Keep your card in view, if possible, after you give it to a clerk
- Never cosign or complete a credit application for someone else's use unless you are directly related to the applicant
- Never leave your cards, receipts, billing statements, or credit applications lying around
- Never lend a credit card to someone other than an authorized user on your account
- Never put your card number on a postcard or on the outside of an envelope
- Open billing statements promptly and reconcile your charges each month (just as you should your checking account)
- Notify card companies and financial institutions, in advance, if you change your address
- Never give your number over the phone unless you are initiating a transaction with a company which you know is reputable
- Quickly report any questionable charges to the card issuer
- Request credit reports, up to once per year, to look for unauthorized use of your credit identity
- Retrieve your card promptly after use
- Save your card receipts to compare with billing statements
- Sign credit cards as soon as they arrive
- Try to block other people's view of your card when you use your card at phone booths or in shops
- Use a post office box if you are concerned about the security of your mailbox
- Void or destroy all carbons and incorrect receipts
- When you mail in payments to a financial institution, make sure you use their post office box (when possible)
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