Why Should I Worry About Credit Fraud |
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Just because it has never happened to you doesn't mean you shouldn't worry about credit fraud with lost or stolen credit cards: it affects one and all. Criminals using credit fraud for availing goods and cash put the burden of the loss on the credit card issuer. It covers this by charging cardholders higher fees and interest rates.
Credit Fraud Poses A Growing Problem It has been confirmed by law enforcement officials and consumer protection organizations like Public Interest Research Group and Privacy Rights Clearinghouse that the problem of credit fraud is a growing one, especially identity theft, the most devious form. This increases the importance of checking your credit report regularly. Various types of credit fraud exist and the more serious ones go beyond a stolen credit card. The best way to avoid fraud through a lost or stolen credit card is to report the card lost or stolen. But there is also the possibility of somebody using your credit despite your card being safe in your possession. Credit Fraud Can Occur Without The Victim's Knowledge A stolen account number is as damaging as a stolen credit card, all the more so if details like expiry date or billing address are found out by the criminal. You can only detect credit fraud when you notice charges and cash advances you did not make in your monthly statement. There are many ways criminals steal credit account numbers from telephone and Internet scams to copying them while the owner isn't looking or collecting them from discarded receipts or account statements in the trash. Also called dumpster diving, retrieving information from trash is as effective for criminals indulging in identity fraud which is much more difficult to detect. Methods for stealing identity include stealing personal information to use for applying for credit or stealing preapproved credit card offers from the trash and sending them with a different address. One of the few ways to curb identity theft before it causes too much damage is to check your credit report regularly. Take Steps To Protect You and Minimize the Costs of Credit Fraud Credit cards should be safeguarded as cash is. Carry just one or two cards around for everyday use. The amount of information that can be stolen should be minimized as much as possible. Social security card, birth certificate or passport should not be carried on a routine basis. A list of all credit cards, account numbers, expiry dates and issuer phone numbers should be maintained for immediate notification to creditors in case of theft or loss. New cards should be signed on receiving them. In case of any delay in credit card bills, the issuer's customer service should be notified immediately. Make sure your bill has not been diverted to a different address. Every month statements should be reviewed with care to ensure all charges are accurate. Billing errors and lost or stolen cards should immediately be reported to the issuer. Card number and personal information should never be given over the phone. Credit report should be checked for accuracy at least once a year. Conclusion Identity theft involves use of your personal information like name and social security number by somebody else to access current credit accounts or open new ones with your identity. The culprit may rent an apartment, take up a job and commit crimes under your name. However identity fraud more often involves using your good credit rating without your knowledge. Keep your personal information safe and take all precautions to protect yourself and minimize the costs of credit fraud. |
