Seems like daily there are news reports concerning yet another case of identity theft or credit card fraud. Who are the typical victims? Are they the nice elderly couple down the street who are so trusting and big-hearted? Or perhaps the high school and college-age kids who believe they are invincible as they step out to conquer the world and make a place for themselves? Surely it isn’t the savvy white-collar business man who drives his Lexus by the house everyday on his way to work.
The truth is, none of us is exempt from the all-too-real threat of potential credit card fraud, which is a big part of identity theft. In reality, no one can guarantee that your credit card numbers won’t be stolen or that your identity won’t be accessed by a criminal. However, there are several pro-active measures we can take that will reduce our risk ratio.
I have a friend who is a general contractor. He has encountered many, many remodel projects that were initiated because of a minor problem that wasn’t recognized and dealt with early with just a simple repair. Often the problem itself could have been prevented if, in the original construction process, protocol had been followed and shortcuts had been avoided. After listening to him tell of an incident where he had been called to make what the home-owner thought would be a minor repair but that turned out to be quite a restoration project, I asked him how he discovered the source and extent of the actual damage not readily noticeable to the average person. His response intrigued me and has become a bit of a guiding principle in my life: “You have to think like water.”
The lessons I learned from my friend the contractor are principles I have applied to protect myself and my family from credit card theft. Principle one: Follow protocol. Principle two: Don’t take shortcuts – ever. Principle three: Think like a thief.
When I was young, my grandparents traveled in Europe. The only thing they really had to worry about was preventing the actual physical theft of their cash and traveler’s checks. My grandfather bought a money belt to wear under his clothing and religiously carried their money and checks in it. He knew the high rate of pick-pocket crimes in the area they were visiting and had friends who advised him that a money-belt was the safest way to go. My grandfather applied all three principles.
Today’s world is a bit more complicated than that of my grandparents, but there are still proven protocols we can use to protect ourselves from credit card fraud in today’s high-tech world. Obviously, we still need to be sure our cards are not physically stolen. It’s a wise idea to only carry a couple credit cards and an ATM card in your wallet. If you can force yourself not to, don’t carry a debit card. Debit cards are so convenient to use, but carry a much greater risk than a credit card. Generally, if a credit card is stolen, the Truth in Lending Act protects credit card holders from being liable for no more than $50 of the loss. Debit card carriers whose cards are stolen are at risk of having their entire checking accounts wiped out, and they have no protection. (If you use debit cards, access the card company’s on-line service to monitor your account weekly.)
The second thing we can do to protect physical access to credit card numbers is to buy a paper shredder and faithfully shred everything with any personal information. Everything. Every time. No shortcuts. A list of items to shred would include credit card statements, credit card applications, loan applications, pre-approved credit offers, credit card receipts, etc. In addition to shredding paperwork you are disposing of, spend the extra money to install a mailbox with a lock or contract for a PO Box to protect the paperwork you are receiving. Locked mailboxes aren’t fool-proof, but they are a deterrent.
The electronic age has presented many more threats to my credit card safety than my grandparents ever dreamed of. Awareness and diligence is a key to protection. Anytime your credit card leaves your hand, don’t let it leave your sight, and watch carefully the way the waiter or the retail cashier swipes the card. Hand-held devices called skimmers are used by criminals to store information found on a credit card’s magnetic stripe until a time when the criminal can download it onto a computer. It would only take a second to swipe the card with a skimmer before swiping it for your purchase.
One of the biggest targets for criminals intent on credit card theft is your personal computer. It is imperative that you install a firewall to protect your home computer from hackers. This is especially necessary if your internet connection is through DSL or cable. While you are installing a firewall, also spend the money for a good virus protection software and pay the subscription fees for regular updates. This protection will prevent worms or viruses from capturing information entered onto your computer and sending it out.
If you store files that contain sensitive personal data including credit card information, bank account numbers, investment information, or passwords, protect those files with passwords.
Criminals target naïve people. Keep yourself educated on recent scams involving the internet. Be assured that banks and credit card companies never, ever, ever contact customers through emails that ask for identifying information or account numbers. “Phishing” emails will contain your bank’s logo and other graphics and look like official correspondence. They will direct you click on a link that opens a page very similar to the bank’s online website where you will be asked to enter account information. Do not click on the link. Do not enter your information. Ever. If you have questions, call your banking institution or your credit card issuer.
In the same vein, do not give out your credit card information or any other identifying information (debit card, social security number, etc.) to anyone else soliciting it over the internet (or phone or mail) unless it is to a business you trust and unless you have made the initial contact with the company.
Be cautious about your online shopping. Only purchase things with a credit card online if you are positive that the reputable business is offering a secure transaction site. When you hit a “checkout” or similar button, you should be taken to a page that has a prominent graphic or dialogue box containing a notification of security. You can also glance at the url in your browser to see that the address begins with https:// – look for the “s.” You should never email your credit card information to anyone. Email can be hacked into. If a company does not have a secure site through which to complete a transaction, use PayPal or find another source for the item you wish to purchase.
Beware of your children’s internet activities. Protect your computer from being able to download programs without password-approved permission (and don’t give your kids the password). There are many file-swapping or file-sharing programs on the internet that can be interesting or fun, but they are easy ways to expose yourself to hackers.
If we are as diligent about protecting our credit card numbers and personal information as thieves are about stealing it, if we follow established protocol and never take shortcuts or make exceptions to the rules, we can go a long way in reducing our personal risk of credit card fraud and identity theft.
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- Credit card fraud targeted by new security measures
- Choosing The Right Credit Monitoring System Is Half the Battle
- End of Road for Hacker in Record Credit Card Theft
- Where Identity Theft Takes Place and what you can do to Protect Yourself
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