Credit Card Fraud Is On The Rise |
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Identity theft and credit cards fraud are the fastest growing white-collar crimes in the United States. While anyone can be a victim of these crimes, members of the Navy, Marine Corps and the other branches of the armed forces are more susceptible than the general populace. Two major contributing factors in the increase of credit cards fraud are the rise in online credit applications over the Internet and the tremendous proliferation of credit cards. Military members move around a lot and rely on remote access, such as the Internet, for a lot of their financial services, which makes them especially vulnerable. Someone can easily pull your Social Security number from your leave and earnings statement and use it to steal your identity. Credit cards fraud occurs when someone uses your specific identifying information, such as your credit card number and social security number, to acquire goods or services in your name. A thief can use basic personal information, along with a false address, to get credit cards and other forms of identification, such as a driver's license. When any of these events occur, an identity has been stolen. Typically, the majority of damage is done very quickly, sometimes within days, before the victim is even aware of a problem. People don't find out until they get a call from a credit cards company or debt collection agency. This can happen years after the actual identity theft, which can make it almost impossible to track down the person responsible. Sometimes, people aren't even contacted and the information goes right to their credit report. This can affect their credit rating and keep them from getting legitimate loans and lines of credit. While companies those offer credit cards usually absorb the losses associated with these crimes, the long-term implications for victims and their credit ratings are very serious. Victims may spend months or years trying to clean up their credit records, and the process can be very stressful. The Federal Trade Commission (FTC) recently adopted a new procedure for people to report suspected identity theft. Instead of several different forms, the process has been consolidated into the ID Theft Affidavit. The form alerts companies where a new account is opened in your name and the company can then investigate the credit cards fraud and decide the outcome of a claim. Financial experts say prevention is the best bet. It's a lot easier to prevent identity theft and credit cards fraud than clean up the mess afterward. It may seem like a lot of work, but it's really nothing compared to the time and effort you'll devote to cleaning up your credit records if you are victimized. One of the best ways to catch identity theft and credit cards fraud is to regularly check your credit record. There are three major credit bureaus used by creditors and lenders: Experian, Equifax and TransUnion. Information may be different at each bureau, so it is wise to order your credit report from all three bureaus each year and make sure all the information is correct. Also, follow up with creditors if your bills do not arrive on time. A missing credit card bill could mean an identity thief has taken over your credit cards account and changed your billing address to cover his tracks. The first line of defense is awareness, say experts. Pay attention to your credit cards and bank statements and keep your records straight. If you see something strange, call the agency that handles the account and let them know. Although credit cards fraud is certainly on the rise -- and credit card fraud on the Internet is rising even more dramatically -- many savvy Internet shoppers know that the reality is that it's actually much safer to enter your credit card number on a secure online order form than it is to give your credit card to a waiter at a restaurant. After all, what's to stop the waiter from writing down your credit card number and placing orders on the phone with it later? And research shows that the rate of fraudulent purchases made by cell phones is much higher than credit cards fraud on the Net. Nevertheless, we encourage you to take precautions when giving out any confidential information (including your credit card number) over the Internet, over the phone... or anywhere else for that matter! |
