Credit Card Offers Can Lure Identity Thieves
Francine L. HuffLoanBiz Columnist
About 9 million
Americans have their identity stolen each year, according to the Federal Trade
Commission. Often the theft isn't discovered until a person finds out about new
credit cards opened in their name. But consumers can take steps to guard their credit
and deter identity thieves before they strike.
Credit Card Offers Get
Stolen
About 5.3 billion credit card offers were mailed to
Americans in 2007, according to Mail Monitor, a credit
card direct mail tracking service. Many of those mailings got tossed into the
trash, posing a potential security risk for many households. Identity thieves
go through people's garbage (this is called "dumpster diving") looking
for credit card applications, bank statements, and other personal information.
To avoid having their documents stolen, consumers should shred anything that
has personal information such as social security numbers and financial account
numbers, as well as credit card applications and other forms they don't plan to
use.
Be On Guard with Credit Cards
Some people have their credit card
numbers stolen while paying for products and services. "Skimming" is
a fraud technique in which a store employee uses a storage device to record the
card number (and PIN number if it's a debit card) when the transaction is
processed. This tactic has been reported at restaurants, gas stations, stores,
and other places where cards are out of a customer's sight for a brief amount
of time. To avoid becoming a victim of skimming people should use credit cards
only when they can watch them being processed -- and otherwise pay with cash.
Unsolicited Emails and Phone Calls
It's always a good idea to treat
unsolicited emails and phone calls from credit card companies with a good deal
of skepticism. "Phishing" via email is a big problem -- scam artists
pose as employees of financial institutions to steal credit card numbers and
other personal information. Legitimate credit card companies and other firms
will never ask for personal information or account numbers in an email. And if
someone calls and says they're from a bank or other financial firm, it's a good
idea to get their name, hang up, and then call the company back using the phone
number on the monthly statement.
Identity thieves can ruin an
unsuspecting person's credit. People can watch over their credit by getting a
copy of their credit report from all three consumer reporting agencies.
Everyone can get a free copy of their report every 12 months from each agency
at www.annualcreditreport.com.
Sources
Federal
Trade Commission
Payments News
About the Author
Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.
