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CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Credit Card Fraud
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Overview
of topics
Recognizing the types
of credit card
fraud
Protecting yourself from
fraud
Steps to take when fraud
strikes
Resources and referrals
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Credit
card fraud
Unauthorized charges to
your credit card
Counterfeit cards
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Credit
card fraud can happen when
Cards are lost or stolen
Mail is diverted by criminals
Employees of a business
steal customer information
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Why
does credit card fraud matter?
The Federal Trade Commission
estimates that 10 million people are victimized by credit card theft
each year
According to the US Department
of Homeland Security, the cost of credit and charge card fraud may be
as high as $500 million a year
These costs 00rickle
down00in higher interest rates and fees for all consumers
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
We
all pay ...
While individual cardholders
are not liable for fraud losses, all cardholders end up paying
Victims
spend time and money to repair the damage
Credit
card issuers charge higher fees and interest rates to cover their losses
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
ID
theft
Identity theft is the use
of someone00 personal information to commit financial fraud
Social
Security numbers
Dates of
birth
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
ID
theft harms victims
Names and other personal
information are used to open new credit accounts
Existing credit and bank
accounts are accessed to make unauthorized purchases or cash withdrawals
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 credit damage
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Forms
of fraud
Dumpster diving
Stealing
credit card information from discarded receipts or account statements
in people00 trash
Shred unwanted
documents that contain Social Security numbers, bank and credit card
information and other sensitive financial information
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Skimming
Dishonest employees make
illegal copies of credit or debit cards using a 00kimmer00/b>
This small
device captures credit card numbers and other account information
The stolen credit information
is used to make
purchases
by phone and internet
counterfeit
cards
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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
Legitimate
banks will never send unsolicited emails asking for information they
already have
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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.
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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 with a permanent black ink pen
activate
the card even if you don00 plan to use it immediately
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Should
you write
00sk for ID00
Writing 00sk for ID00
in the signature space may not be a good idea as your transactions might
not go through if the card isn00 signed
Consider signing your card
and also writing 00sk for ID00
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
In
case your card is lost or stolen
Record all your account
numbers and company contact information
Keep
the list in a secure place
That way you can easily
find the right number to report the loss
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Protect
your PIN
Never write down your personal
identification number (PIN)
Never give your PIN to
anyone
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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 it00 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
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Billing
Statements
Review credit card statements
carefully on the day they arrive
Report
any questionable charges to your card issuer immediately
A missing credit card statement
may indicate stolen mail and be a warning sign for ID theft
Contact
your card issuer right away if your bill doesn00 arrive around the
usual date
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Online
account access
If you have a computer,
consider signing up for online account access
You can track your account
activity between statements
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Liability
Fraud victims generally
are not required to pay for unauthorized charges
Under
federal law, victims may be liable for up to $50 of the loss
But most cards now have
00ero liability00policies
This
means the card issuer will not charge you for any portion of fraudulent
and unauthorized charges
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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 credit card is
lost or stolen, call your credit card issuers immediately
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Watch
your credit card
Watch closely when store
or restaurant employees handle your card to make sure they are not copying
or 00kimming00your credit card number
After you make a purchase
and your card is handed back to you, make sure the card is yours
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Notify
your card company if
You are going to be traveling
away from home
This
will help prevent any inconvenience if your issuer should block your
account from being used in a different city or country
You are going to make any
unusually large purchases
This
will ensure that your account is not flagged for possible fraud
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Internet
safeguards
If you bank online, don00
use 00utomatic sign on00for bank or credit card sites
Avoid providing your credit
card number to websites offering 00ree access00/b>
Install a firewall and
anti-spyware software in your computer to prevent unauthorized access
from hackers
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Report
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
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Fair
Credit Billing Act
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
Note: There is no
time limit for reporting fraudulent charges.
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Disputing
charges
Call your card company.
Ask if you need to send a letter, too
Describe the dispute in
a few sentences
Fill out and return any
dispute forms the company sends to you
Send
disputes to the correct address
Do not
include your dispute letter with your bill payment
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Helpful
resources
to know about
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Free
Credit Reports
Online:
www.annualcreditreport.com
Phone:
877-322-8228
By mail:
Annual Credit
Report
P.O. Box 105281
Atlanta, GA 30348-5281
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
FTC
The Federal Trade Commission
Free publications
on credit cards, billing rights and how to avoid credit card fraud
www.ftc.gov/consumer
877-FTC-HELP (382-4357)
ID Theft Clearinghouse
www.ftc.gov/idtheft
877-IDTHEFT (438-4338)
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
The
National Fraud Information Center
The National Fraud Information
Center, a project of the National Consumers League offering advice
and prevention tips online
www.fraud.org
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
Attorneys
General
Each state has an attorney
general to protect its citizens
To find yours, go to the
National Association of Attorney General web site (www.naag.org)
Search
by state
CONSUMER
ACTION - Credit Card Fraud Training
www.consumer-action.org
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 with funding from WaMu.
漏
Consumer Action 2007
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