Credit card fraud

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Credit card fraud

  1. 1. Credit Card FraudAn Educational Partnership of Consumer Action and Chase INF0ANU The world of possibilities… ©2012
  2. 2. Overview of Topics•Recognizing types of Credit Card Fraud•Protecting yourself from fraud•Steps to take when fraud strikes•Resources & referrals INF0ANU The world of possibilities…
  3. 3. Credit Card Fraud• Unauthorized charges to your credit card• Counterfeit cards INF0ANU The world of possibilities…
  4. 4. Credit card fraud can occur when• cards are lost or stolen• mail is diverted by criminals• employees of a business steal customer information INF0ANU The world of possibilities…
  5. 5. 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 INF0ANU The world of possibilities…
  6. 6. The bottom line...• All cardholders pay for credit card fraud losses – Victims spend time and money to repair the damage – Credit card issuers charge higher fees and interest rates to cover their losses INF0ANU The world of possibilities…
  7. 7. 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 INF0ANU The world of possibilities…
  8. 8. ID thieves harm victims by:• using their names and other personal information to open new credit accounts• accessing existing credit and bank accounts to make unauthorized purchases• Victims of ID theft are not held liable for losses, but it takes time and effort for victims to prove fraud and clean up the chaos INF0ANU The world of possibilities…
  9. 9. 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 INF0ANU The world of possibilities…
  10. 10. 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 INF0ANU The world of possibilities…
  11. 11. 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 INF0ANU The world of possibilities…
  12. 12. 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 INF0ANU The world of possibilities…
  13. 13. 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. INF0ANU The world of possibilities…
  14. 14. 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 INF0ANU The world of possibilities…
  15. 15. Should you write “Ask for ID”?• Writing “Ask for ID” in the signature space may not be a good idea as your transactions might not go through if the card isn’t signed• Consider signing your card and also writing “Ask for ID” INF0ANU The world of possibilities…
  16. 16. 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 INF0ANU The world of possibilities…
  17. 17. Protect your PIN• Never write down your personal identification number (PIN)• Never give your PIN to anyone INF0ANU The world of possibilities…
  18. 18. 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 INF0ANU The world of possibilities…
  19. 19. 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 INF0ANU The world of possibilities…
  20. 20. 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 INF0ANU The world of possibilities…
  21. 21. Liability• Fraud victims are not generally required to pay for unauthorized charges• Victims may be liable for up to $50 of the loss, depending on the circumstances INF0ANU The world of possibilities…
  22. 22. 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 INF0ANU The world of possibilities…
  23. 23. 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. INF0ANU The world of possibilities…
  24. 24. 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 INF0ANU The world of possibilities…
  25. 25. 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 INF0ANU The world of possibilities…
  26. 26. 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 INF0ANU The world of possibilities…
  27. 27. 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 INF0ANU The world of possibilities…
  28. 28. 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• Note: There is no time limit for reporting fraudulent charges. INF0ANU The world of possibilities…
  29. 29. Disputing charges• Always dispute billing errors in writing. You can call your card company and follow up with a letter. – Describe the dispute in a few sentences – Send it to the correct address for billing disputes – Do not include your dispute letter with your bill payment INF0ANU The world of possibilities…
  30. 30. Helpful resources to know about INF0ANU The world of possibilities…
  31. 31. 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 INF0ANU The world of possibilities…
  32. 32. 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 INF0ANU The world of possibilities…
  33. 33. 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 INF0ANU The world of possibilities…
  34. 34. Your State Attorney General’s Office• The National Association of Attorney General web site www.naag.org• Check the phone directory to find your state office INF0ANU The world of possibilities…
  35. 35. Questions and Answers INF0ANU The world of possibilities…
  36. 36. Consumer Action• Visit our web site: www.consumer-action.org• E-mail: info@consumer-action.org• Call: 415-777-9635 This presentation was created by Consumer Action in partnership with Chase. © Consumer Action 2009 INF0ANU The world of possibilities…

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