What
would you do if your credit cards were stolen? If
merchandise that you did not purchase was charged to
your credit accounts? If unauthorized credit accounts
were opened in your name?
These
actions are examples of credit fraud, also referred to
as identity fraud, identity theft, and account takeover
fraud, where criminals steal victims' identities in
order to take over their credit accounts.
Most of
us have never experienced credit fraud. As a result,
many of us may be unconcerned about credit fraud and
believe that we're not affected. But we are.
Credit fraud affects everyone.
Credit
fraud is on the rise. According to MasterCard
International, account takeover fraud has increased by
369% since 1995. It has become one of the fastest
growing types of fraud, and one of the more difficult to
combat.
When
criminals buy goods and services on credit using false
information, we all pay through higher prices and more
expensive credit terms--even if our own accounts are
untouched.
And when
someone is victimized by a particularly successful scam,
criminals are more likely to continue cheating others
using similar fraudulent operations.
How to protect yourself.
There
are a number of common sense measures you can use to
effectively defend yourself against fraudulent activity
and minimize the costs of credit fraud. Here are a few:
-
Safeguard your credit cards and treat them like
money.
-
Reduce the number of credit cards you use, and don't
carry all of them with you.
-
If a
credit card bill is late, call the customer service
number immediately. Make sure that your mail hasn't
been diverted to a new address.
-
Review your statement carefully to make sure all
charges are accurate.
-
Report billing errors and lost or stolen cards to
your credit card issuer immediately.
-
Minimize the amount of personal information a
criminal can steal. Don't carry extra credit cards,
a Social Security card, birth certificate, or
passport.
-
Sign
your new cards as soon as you receive them.
-
Keep
a list of all credit cards, account numbers, and
expiration dates so you can notify creditors quickly
in case of theft or loss.
-
Never give a card number or other information over
the phone unless you initiated the call.
-
Shred pre-approved credit card offers, credit card
receipts, copies of airline tickets, travel
itineraries, and anything else that displays your
credit card information before putting them in the
trash.
Check your credit report for accuracy at least once a
year.
Mortgage Glossary1
