Identity Theft: Are You At Risk?

Fraudsters have advanced from physically stealing to online theft. Digital scams have become very prevalent and the most obvious one is credit card theft. It happens in various ways ranging from the use of simple discarded billing statements to high-tech online hacking. Fraudsters can use your account information to steal your money or even do online shopping and much more. You are at high risk if you use your credit card a lot to shop and earn points. But that doesn’t mean you should stop shopping using your credit card. There are ways you can prevent and handle credit card identity theft. Below are some practices to help you.

Be Watchful of Phishing

Phishing is a technique that tricks you to reveal your personal information like credit card numbers. It can be through a phone call, text, email or even a snail mail. The scammers can confuse you by using trustworthy logos, attractive prizes, and reputable company names to misrepresent themselves to you. The best way to prevent phishers is to be wary of any request that seeks to take your personal information. It is good to verify the legitimacy of any request seeking your credit card information.

Card Skimming

This happens when someone else collects the data from your payment card reader illegally then uses it for credit card theft. They can attach a device to card slot that stores, scans and transfers information which are later used to accomplish theft. The challenging thing is that most of these devices have become very sophisticated and have been blended in many machines. They are common in public places like ATMs, restaurants, and gas pump stations among other terminals. Although EMV chip cards have helped reduce skimming, it is vital to avoid any unattended payment terminals. In the event you notice something unusual in a card slot, stay away from the slot. Other warning signs include unresponsive buttons, card slots that are jiggle, loose and other out-of-order signs.

Contact a Credit Bureau

If you notice a sign of fraud on your credit report, call one of the credit rating bureaus as soon as possible. By reporting the fraud, you can stop thieves from opening extra accounts using your details like name, contact address and credit card number. The bureaus will also contact you in case of an alert or when your account is changed. Just calling one of the three credit bureaus (Equifax, TransUnion, and Experian) can help to prevent further fraudulent activity.

Understand Familiar Fraud

Sometimes a perpetrator of theft can turn out to be a close relative or any other unsuspecting person you interact with often. Such fraud can be very frustrating and can cost you a lot. They can even intercept your email or change your address so they can get information about your card even before you get. If you are fearful of frequent familiar fraud, be diligent about locking up your critical documents, using the post office box for mailing and ensuring personal data remains private.

Protect Your Account

There are various ways through which you can protect your account. In case you shop online, remember to check for the lock icon on your browser. The icon indicates whether the site is safe or not. Using anti-virus, spyware, and malware protection software is also ideal. The software should always be up-to-date.

Additionally, you should secure passwords and never share them with anyone. Practices such as writing down passwords where other people can find are not recommended. Moreover, the passwords you use should be strong enough. Strong passwords often have at least eight characters. It should feature numbers and a combination of upper and lower case letters and even special characters.

Periodically Review Your Accounts

Remember to check your account regularly for any unauthorized activities. In case you notice any suspicious transaction, don’t hesitate to contact your card issuer as soon as possible. You should also review receipts before signing them and after reconciling your bills, shred all the receipts and statements to prevent thieves from getting access to your data.

Compromised Merchants

Stolen information doesn’t always imply weak security of your card. It could be that the business you shop at that has poor data security. Data breaches are very common in most retailers. E-commerce websites are not always safe. Hackers can break into their systems and scrape your personal data. Although it can be hard to resolve cases with brick-and-mortar business, you can still stay safe by switching your payment methods. Ensure all the connections are secured with HTTPS when checking out your payments.

Bottom Line

Credit card theft can be very costly. Losing your money to fraudsters is the worst experience you can imagine. It is vital to stay safe. Practices such as reviewing your account, securing passwords, understanding skimming and phishing and familiar fraud can help you prevent identity theft. If your account is hacked, contact your card issuer immediately. For any suspicious information on your credit report, contact one of the credit reporting bureaus.