16-07-2012, 03:46 PM
Credit Card Fraud
[attachment=27760]
Overview of Topics
Recognizing types of Credit Card
Fraud
Protecting yourself from fraud
Steps to take when fraud strikes
Resources & referrals
Credit Card Fraud
Unauthorized charges to your credit card
Counterfeit cards
Credit card fraud can occur when
cards are lost or stolen
mail is diverted by criminals
employees of a business steal customer information
Why does credit card fraud matter?
The Federal Trade Commission estimates that 10 million people are victimized by credit card theft each year
Credit card companies lose close to $50 billion dollars per year because of fraud
These costs “trickle down” in higher interest rates and fees for all consumers
ID Theft
Identity theft is the use of someone’s personal information, such as their Social Security number or date of birth, to commit financial fraud
Categories of id theft
Application fraud
Account takeover
Application Fraud
criminal uses stolen or fake documents to open an account in someone else's name
create counterfeit documents.
Account Takeover
criminal tries to take over another person's account
Forms of Fraud
Dumpster Diving
Stealing credit card information from discarded receipts or account statements in people’s trash
Shred unwanted documents that contain Social Security numbers, bank and credit card information and other sensitive financial information
Skimming
When dishonest employees make illegal copies of credit or debit cards using a “skimmer” device that captures credit card numbers and other account information
The stolen credit information is used to make purchases by phone and internet, or to make counterfeit cards
Phishing
Phishing is a financial crime that starts with massive numbers of deceptive spam e-mails
These e-mails look like they come from your bank
But they are just a trick to get account numbers and passwords
Security Codes
Credit card companies use security codes to help prevent unauthorized or fraudulent use by phone and online
These numbers help ensure that you have the card — not just the account number
Merchants are prohibited from keeping or storing any security codes after transactions are completed
Security Codes
Security codes for Visa, MasterCard and Discover cards are the 3 digits located on the back of the card in the signature box.
Security codes for American Express are 4 digits long, printed on the front of the card above the right side of the main credit card number.
New Cards
For added protection, credit card issuers ask you to call from home to activate new credit cards
As soon as you receive your new card, sign the back of it with a permanent black ink pen
In case your card is lost or stolen
Record all your account numbers and company contact information and keep the record in a secure place
That way you can easily find whom to call to report the loss
Protect your PIN
Never write down your personal identification number (PIN)
Never give your PIN to anyone
Protect your account numbers
Never write your credit card number on post cards or on the outside of envelopes
Never provide your card number on the phone, unless you know it’s a legitimate, reputable business
Never give your account number to anyone who calls you on the phone or sends you an e-mail
If you let others use your card, you are responsible for charges
Billing Statements
Review credit card statements closely on the day they arrive
Report any questionable charges to your card issuer immediately
A missing credit card statement may indicate stolen mail
Contact your card issuer right away if your bill doesn’t arrive around the usual date
Online account access
If you have a computer, consider signing up for online account access
This way you can track your account activity between statements
Protect your wallet or purse
Keep a close eye on your belongings
Never carry all your credit cards
Bring only the 1 or 2 cards you might need
Carry your credit cards separate from your wallet
If your wallet or purse is lost or stolen, call your credit card issuers immediately
Watch your credit card
Watch closely when store or restaurant employees handle your card to make sure they are not copying or “Skimming” your credit card number
After you make a purchase and your card is handed back to you, make sure the card is yours.
Take precautions
Notify your credit card company if you are going to be traveling away from home to prevent any inconvenience if your issuer should block your account from being used in a different city
Notify your credit card company if you are going to make any unusually large purchases so that your account is not flagged for possible fraud
Safeguard your mail
Notify the post office and your credit card company immediately if you change your address
Lock your mailbox. Never leave mail in an unlocked mail box or apartment building lobby
Put your return address on out-going mail
Shred unwanted credit card solicitations before discarding
Internet Safeguards
If you bank online, don’t use “automatic sign on” for bank or credit card sites
Avoid providing your credit card number to websites offering “free access”
Install a firewall in your computer to prevent unauthorized access from hackers
Reporting credit card fraud
To report credit card fraud
Call your card company immediately about
Lost or stolen cards or PIN numbers
Unauthorized charges on your statement
Request a fraud affidavit
Get a police report if necessary
The Fair Credit Billing Act
is a federal law that gives you the right to resolve billing errors, including unauthorized charges
If something goes wrong, you have the right to dispute the charge
To dispute billing errors on your statement, contact your card issuer within 60 days from the statement date or you lose your right to file a dispute
Free Credit Reports
Online:
www.annualcreditreport.com
Phone:
1-877-322-8228
By mail:
Annual Credit Report
P.O. Box 105281
Atlanta, GA 30348-5281
Federal Trade Commission (FTC)
The FTC offers free publications on credit cards, billing rights and how to avoid credit card fraud
www.ftc.gov/consumer
The National Fraud Information Center
The National Fraud Information Center, a project of the National Consumers League, offers advice and prevention tips
www.fraud.org
1-800-867-7060
[attachment=27760]
Overview of Topics
Recognizing types of Credit Card
Fraud
Protecting yourself from fraud
Steps to take when fraud strikes
Resources & referrals
Credit Card Fraud
Unauthorized charges to your credit card
Counterfeit cards
Credit card fraud can occur when
cards are lost or stolen
mail is diverted by criminals
employees of a business steal customer information
Why does credit card fraud matter?
The Federal Trade Commission estimates that 10 million people are victimized by credit card theft each year
Credit card companies lose close to $50 billion dollars per year because of fraud
These costs “trickle down” in higher interest rates and fees for all consumers
ID Theft
Identity theft is the use of someone’s personal information, such as their Social Security number or date of birth, to commit financial fraud
Categories of id theft
Application fraud
Account takeover
Application Fraud
criminal uses stolen or fake documents to open an account in someone else's name
create counterfeit documents.
Account Takeover
criminal tries to take over another person's account
Forms of Fraud
Dumpster Diving
Stealing credit card information from discarded receipts or account statements in people’s trash
Shred unwanted documents that contain Social Security numbers, bank and credit card information and other sensitive financial information
Skimming
When dishonest employees make illegal copies of credit or debit cards using a “skimmer” device that captures credit card numbers and other account information
The stolen credit information is used to make purchases by phone and internet, or to make counterfeit cards
Phishing
Phishing is a financial crime that starts with massive numbers of deceptive spam e-mails
These e-mails look like they come from your bank
But they are just a trick to get account numbers and passwords
Security Codes
Credit card companies use security codes to help prevent unauthorized or fraudulent use by phone and online
These numbers help ensure that you have the card — not just the account number
Merchants are prohibited from keeping or storing any security codes after transactions are completed
Security Codes
Security codes for Visa, MasterCard and Discover cards are the 3 digits located on the back of the card in the signature box.
Security codes for American Express are 4 digits long, printed on the front of the card above the right side of the main credit card number.
New Cards
For added protection, credit card issuers ask you to call from home to activate new credit cards
As soon as you receive your new card, sign the back of it with a permanent black ink pen
In case your card is lost or stolen
Record all your account numbers and company contact information and keep the record in a secure place
That way you can easily find whom to call to report the loss
Protect your PIN
Never write down your personal identification number (PIN)
Never give your PIN to anyone
Protect your account numbers
Never write your credit card number on post cards or on the outside of envelopes
Never provide your card number on the phone, unless you know it’s a legitimate, reputable business
Never give your account number to anyone who calls you on the phone or sends you an e-mail
If you let others use your card, you are responsible for charges
Billing Statements
Review credit card statements closely on the day they arrive
Report any questionable charges to your card issuer immediately
A missing credit card statement may indicate stolen mail
Contact your card issuer right away if your bill doesn’t arrive around the usual date
Online account access
If you have a computer, consider signing up for online account access
This way you can track your account activity between statements
Protect your wallet or purse
Keep a close eye on your belongings
Never carry all your credit cards
Bring only the 1 or 2 cards you might need
Carry your credit cards separate from your wallet
If your wallet or purse is lost or stolen, call your credit card issuers immediately
Watch your credit card
Watch closely when store or restaurant employees handle your card to make sure they are not copying or “Skimming” your credit card number
After you make a purchase and your card is handed back to you, make sure the card is yours.
Take precautions
Notify your credit card company if you are going to be traveling away from home to prevent any inconvenience if your issuer should block your account from being used in a different city
Notify your credit card company if you are going to make any unusually large purchases so that your account is not flagged for possible fraud
Safeguard your mail
Notify the post office and your credit card company immediately if you change your address
Lock your mailbox. Never leave mail in an unlocked mail box or apartment building lobby
Put your return address on out-going mail
Shred unwanted credit card solicitations before discarding
Internet Safeguards
If you bank online, don’t use “automatic sign on” for bank or credit card sites
Avoid providing your credit card number to websites offering “free access”
Install a firewall in your computer to prevent unauthorized access from hackers
Reporting credit card fraud
To report credit card fraud
Call your card company immediately about
Lost or stolen cards or PIN numbers
Unauthorized charges on your statement
Request a fraud affidavit
Get a police report if necessary
The Fair Credit Billing Act
is a federal law that gives you the right to resolve billing errors, including unauthorized charges
If something goes wrong, you have the right to dispute the charge
To dispute billing errors on your statement, contact your card issuer within 60 days from the statement date or you lose your right to file a dispute
Free Credit Reports
Online:
www.annualcreditreport.com
Phone:
1-877-322-8228
By mail:
Annual Credit Report
P.O. Box 105281
Atlanta, GA 30348-5281
Federal Trade Commission (FTC)
The FTC offers free publications on credit cards, billing rights and how to avoid credit card fraud
www.ftc.gov/consumer
The National Fraud Information Center
The National Fraud Information Center, a project of the National Consumers League, offers advice and prevention tips
www.fraud.org
1-800-867-7060