Protecting Yourself from Financial Crimes
May
14
Written by:
5/14/2010 7:45 AM
Protecting yourself from financial crimes
Credit Cards:
Thieves can steal your credit card numbers many ways. Taking some simple steps will help thwart them.
First, consider removing your name from the marketing lists of the four major credit reporting bureaus. You can "opt-out" from these lists by phone or online. This should reduce the number of pre-approved credit card offers you receive. Other steps to help safeguard your cards are:
* Only carry the cards you need.
* Do not keep PIN numbers in your wallet or purse.
* Never let a clerk put your card where you can't see it. Dishonest clerks can use hand-held recorders to swipe your card and capture its information.
* Make sure the receipt amount is correct.
* Draw a line through any fields you leave blank on the receipt.
* Never give your credit card number over the phone unless you made the call. Legitimate companies will never call to "verify" your credit card number.
* Never reply to an unsolicited email with your credit card number. Again, no legitimate business will ask you to "verify" your credit card number. This is a common scam known as phishing.
* When shopping online use a secure server. After you arrive at the page that asks for your credit card, look at the top area of your browser. The website should begin with "https://" rather than "http://". The 's' indicates a secure server.
* Check your credit card statements and verify that each bill is legitimate. It is particularly important with ATM cards, because you may be liable for all charges if you do not report the loss quickly.
* Make a list of your cards, account numbers, and phone numbers of the card companies. Keep this in a safe place, separate from your cards. If your purse or wallet is stolen, you can use this to notify your credit card companies.
State law requires businesses to conceal all but the final four digits of the account number on all credit or debit card receipts. The law does make an exception for transactions in which the sole means of recording the card number is writing it out by hand or an imprint or copy of the card. Merchants are allowed to keep a copy of the receipt with the full credit card number.
Business owners who continue to print the entire credit or debit account number on consumer receipts may be penalized up to $500 per month of noncompliance. Please file a consumer complaint with the Texas Attorney generals Office if you believe a merchant violated this law.
If Theft Occurs:
If you suspect your credit card number may be compromised, contact your credit card company right away.
Federal Reserve regulations protect you if someone uses your credit card without permission. You are not liable for any charges made after you notify your bank or credit card company that your card was lost or stolen. If charges are made before you give notice, you are only liable for $50 of those charges.
If you have more than one card lost or stolen, even the $50 limit can result in significant losses so promptly give notice of theft or loss. If you dispute your liability for an unauthorized charge, remember that under federal law, the credit card company has the burden of proving that you authorized the charges or that any unauthorized charges were made before you gave notice. Disputes over credit card bills must be in writing.
The regulations that protect you from fraudulent use of ATM and debit cards are not as generous. As with credit cards, you are not liable for any charges made after you report the loss or theft of your card. However, the notice requirements are stricter. You are only protected by the $50 limit on unauthorized charges if you report the loss of the ATM card within two business days after the day you learn of the loss or theft. If you wait longer than two business days, you can be liable for up to $500 in charges. Once an unauthorized charge has been reported to you on your bank statement, you can be liable for the full amount if you do not report the charge within 60 days of the date the statement was sent to you.
Another step you can take to protect your credit is to place a credit alert or freeze on your file with the major credit reporting bureaus. You can contact them at:
EXPERIAN
P. O. Box 2104
Allen, TX 75013-2104
(888) 397-3742
www.experian.com
EQUIFAX
P. O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111 (order report)
(800) 525-6285 (report fraud)
www.equifax.com
TRANS UNION
P .O. Box 2000
Chester, PA 19022-2000
(800) 888-4213 (request report)
(800) 680-7289 (report fraud)
www.transunion.com
It is also a good idea to review your credit report for suspicious activity. You can order a free credit report from each of the above credit reporting bureaus at www.annualcreditreport.com
Identity Theft:
Identity theft occurs when someone uses your personal identifying information without your permission. This information may include your name, address, driver license number, Social Security number, mother's maiden name, birth date, or financial information such as your bank account, credit card, or PIN number.
Identity thieves can use your personal information to open credit cards or checking accounts, make purchases using your existing bank account or credit card, get a bogus driver license or Social Security card, make long distance calls, or apply for a job. However, you can take steps to protect your identity.
Preventing Identity Theft:
Protecting your identity begins by reducing the number of places where your personal information can be found. You can remove yourself from many mailing lists for up to five years by contacting the Direct Marketing Association. There is a processing fee for this service, however you can opt-out of pre-screened credit offers for free through www.optoutprescreen.com. Other free services include the state and federal no-call lists, and the Network Advertising Initiative's opt-out list which opts out of major online tracking companies.
Next reduce the number of credit cards you have and only carry the cards that you intend to use. If possible use credit cards that have your photo on them.
If any of your credit card companies send random-issue convenience checks, request in writing to be removed from that mailing list. Also ask your bank about its privacy and information policies. Find out if your bank provides your account information to third parties. Ask to opt out of this practice or request that they notify you in advance. If you receive an offer for a pre-approved credit card or loan but aren't interested, shred the application form before throwing it away.
Do not carry your Social Security card with you unless you need it. Provide your Social Security number only when absolutely necessary. Ask if another number can be used instead. Also never print your Social Security number on your checks. If your workplace displays your Social Security number on a timecard or other place open to public view, ask them to change this procedure.
Use passwords and install an electronic firewall to keep burglars and Internet hackers from accessing your computer. Make sure you use anti-virus and anti-spyware software on your computer to check for malicious programs that you may have inadvertently downloaded - and keep that software up to date along with your web browser. Check with your Internet Service Provider about any free virus, spyware, and firewall software they may provide. Beware of new scams such as Phishing (false e-mails pretending to be a trusted company or financial institution). Do not give your credit card number or other financial information over the Internet unless you are certain you have a secure connection. A secure connection will have an "s" after the "http" web address and an icon of a "closed lock" or "key" at the bottom of the screen. And if you access the Internet over a wireless connection, be careful not to transmit personally identifying information if the connection is unsecure (did not require a password) or untrusted. Save any transaction or confirmation numbers from Internet purchases and make a note of the time and contents of the order. Review the privacy policy of any company you deal with. Request that they not share your financial information.
You can also reduce the chance that you will be a victim of identity theft by taking the following precautions:
* Minimize the amount of personal financial information you carry. Memorize passwords and PIN numbers. Do not carry them.
* Keep financial information in a secure place in your home. Shred documents before throwing them away. Purchase a cross-cut shredder to better protect your information.
* Do not give sensitive information to unsolicited callers. Legitimate businesses will not make unsolicited calls asking for your Social Security or bank account numbers. Caller ID information can be spoofed, so do not rely on the name and number that is on your box.
* Shield your hand when entering your PIN at a bank ATM or when making long distance calls with a calling card. Take your ATM slip and shred it before throwing it away.
* Pick up new checks or credit cards at your bank rather than having them delivered to your home. Do not print your driver's license or social security number on your checks.
* If your bank or credit card statement does not arrive on time, call to make sure they sent it to the proper address. Also contact the Post Office to see if a change of address has been filed in your name. A thief may steal or divert your statements to hide the theft.
Because of the nature of identity theft, you may not realize your identity has been stolen until much later. By then, your good name and credit history can be in ruins. Because nothing can guarantee you protection from identity thieves, you should also be vigilant to detect theft as quickly as possible.
Watching for Identity Theft
Check your bank account and credit billing statements carefully each month for unauthorized activity. If you receive a credit card in the mail that you did not request, call the issuer to find out why. If it was requested by someone else in your name, cancel it immediately. When creating a password or pin, do not use numbers such as your birth date or the last four digits of your Social Security number. Also avoid using names, such as your mother's maiden name or your birthplace, that are likely to appear in public records.
If you are over 25, you should receive a Social Security statement by mail each year. Check it thoroughly and report any inaccuracies to the Social Security Administration. You can order a copy of your statement by calling (800) 772-1213.
You should review your credit reports for errors or fraud. You can order a free copy from each of the three credit bureaus once a year from the website www.annualcreditreport.com. Even if you have not been a victim of identity theft, consider asking the credit bureaus to place a security alert on your account as a protective measure. This alert instructs creditors to call you personally to verify applicant information when applying for new credit. While this will prevent you from getting instant credit, such as on-site approval for store charge cards, it will also stop others from getting credit in your name. Be sure to ask how long the alert will last, how to extend it and how to remove it.
If you need extreme protection, you can take the additional step of placing a security freeze on your credit report. A security freeze allows you to freeze, or lock, your credit files with each of the three major credit bureaus, so that lenders and retailers generally cannot access your credit information. A freeze will cost you money both to initiate and lift.
To learn whether any bad checks have been passed in your name, contact the Shared Check Authorization Network (SCAN). SCAN has the ability to quickly determine whether your checks have been fraudulently used in the United States. You can call SCAN at (800) 262-7771.
If you are suspicious that someone has accessed your bank account without authorization or has passed a check in your name, contact your bank immediately.
Following these steps will help you to know if you become a victim of identity theft.
If You Become a Victim
If you become a victim, it's important you act quickly. Visit the Texas Attorney Generals identity theft Website, texasfightsidtheft.gov to find a wealth of helpful information including our Identity Theft Kit. Information at texasfightsidtheft.gov will help you stop a perpetrator from continuing to use your identity and help you recover from the effects. Information on the site includes: how to report the crime, work with businesses, close fraudulent accounts, and place a security alert and/or freeze on your credit report.
Also visit the Federal Trade Commission and Texas Department of Public Safety's Identity Theft pages for more information.
You can also contact the Victims Initiative for Counseling Advocacy and Restoration of the Southwest (VICARS) at www.idvictim.org. VICARS is a program of the Texas Legal Services Center that provides free civil legal services to victims of identity theft and financial fraud.
If another person is arrested and falsely uses your name or other personal information, Texas law allows you to have this information expunged from the arrest record. Contact the Crime Records Service at the Texas Department of Public Safety (DPS) for more information on the expunction process.
Report ID Theft
You can contact the Federal Trade Commission's Dallas office to report identity theft in Texas. Their Dallas office covers all of Texas.
Federal Trade Commission
100 N. Central Expressway, Suite 500
Dallas, TX 75201
(877) 438-4338
www.ftc.gov/bcp/edu/microsites/idtheft/
You can also file a complaint with the Texas Attorney General’s Office. For a consumer complaint forms call the Texas Attorney Generals Consumer Protection Division at (800) 621-0508 or file on line.
Source: Texas Attorney Generals Office Web Sight.