Protect Your Credit Card From the Latest Identity Theft Techniques
According to the Federal Trade Commission, nearly 10 million people were victims of identity theft in 2004. It’s a frightening statistic, but you can rest assured that there’s something you can do to avoid being a part of it. Read about these methods identity thieves use to steal data and how you can fight back against them.
Phishing: Almost everyone with email has received a phishing email at some point. These emails are designed to look like official messages from a bank or website and ask you to update your account information. They usually contain the same graphics and style of the impersonated merchant and will contain links to the site that look real but are actually disguised. Phishing emails generally contain links and may ask you to enter your financial information or even tell you that your account has been compromised.
What you can do: The best way to prevent such fraud is to avoid clicking any links in your e-mail. If you want to visit the website, simply type the URL address into your web browser instead of clicking the link. From there, you can contact customer service to investigate whether or not your account genuinely needs attention.
Pharming: Pharming is a variation on phishing. Thieves set up fake websites that look like official companies. This helps them “pharm” consumer data. This means if you type in a wrong URL or when you have a specific virus on your computer, you are directed to a fake site that looks like the real one. Thieves collect information when you enter your login information and other data on this fake site.
What you can do: In case any website asks you for sensitive information like your credit card number or social security number, you need to first ensure that it is not a fake request. For this, you should look up the telephone directory for the registered number of the company requesting the information. Then call up the company and speak to the a customer service representative, who should be able to verify whether or not the company needs this information, or if they even asked for it at all.
Trojans: The thieves that send Trojans in your mail are the most irritating sort. There you are checking your mail, and you see an email with an attachment from an unknown source. Your curiosity gets the better of you and you download the attachment. That’s when, unknown to you, the Trojan sneakily enters your system. Once your computer is infected, the Trojan allows a hacker to enter your system and gain access to all of your personal files including records of credit card transactions, bank account details, and more. Trojans can also infect your system in other ways: peer-to-peer file sharing programs, infected disks and CDs.
What you can do: Don’t open suspicious emails or attachments. Install an antivirus program on your computer and update it regularly. Finally, sign up for an email service like Yahoo! Mail that scans your attachments for malware.
Wireless hacking: As increasing numbers of people use wireless Internet in their homes and on their cell phones, identity thieves are having a field day tapping into these connections. If your wireless network or Bluetooth system isn’t secure and encrypted, the information on your phone or computer can easily be stolen.
What you can do: Don’t share credit card or bank account information over a wireless or cordless phone unless it’s equipped with encryption technology. If you have a wireless network in your home, make sure that you protect it with a password.
Computer spyware: Computer spyware can be installed on your system without you even knowing it. Spyware can change your Internet settings by installing their own drivers and dialers. When this occurs, every character you type and website you visit can be recorded and transmitted to a thief. This information can include credit card numbers, bank account information and other sensitive data.
What you can do: Installing virus protection software on your computer can help you catch this kind of fraud. Remove any spyware already installed in your system by running spyware removal tools.
Skimming: Identity thieves use tiny hand-held credit card readers that can easily collect the information on your card’s magnetic strip. Known as skimming, this form of identity theft is common in restaurants and stores where you turn over your credit card to pay. Once a thief has a skimming device full of hundreds of credit card numbers, they sell these numbers or use them to create fake credit cards. Skimming devices are also sometimes placed over the normal card reader on an ATM to steal your data when you try to withdraw money.
What you can do: Try not to let waiters; sales clerks, or gas-station attendants disappear from view with your credit or debit card. It may be embarrassing, but you must demand that your credit card be kept in view when paying for your meal at a restaurant.
While these techniques will help you prevent new identity theft techniques, you must remember that thieves still use old, tried and tested formulas to steal your identity. Here are a few things you can do to prevent such theft.
1. Never give credit card or personal information out over the phone.
2. Add your phone number to the ‘National Do Not Call Registry’.
3. Don’t carry one single card more than you really need every day.
4. Carrying multiple credit cards with you can allow this information to fall in the hands of criminals if your wallet is stolen.
5. Carry only one credit card with you.
6. If you don’t use one or more credit cards, cancel them in writing with the issuing financial institution. Next, cut the card(s) into small strips before disposing.
7. Check your credit card bills and bank statements every month and look for activity you don’t recognize. The sooner you spot a problem, the faster you are able to report the fraud and limit the damage.
8. By law, you’re entitled to a free copy of each of your three credit reports once a year. Request these free copies from Equifax, Experian and Trans Union once a year and review for any credit entries that don’t look right.
9. Use a locked mailbox to prevent checks, credit card offers and other financial information from being stolen.
10. Make copies of your credit cards and keep them secure. This way, if your cards are stolen or lost, you’ll have all the necessary information to contact the card issuers and report the lost or stolen items.
11. Be aware of the dumpster diving phenomenon. Stealing important documents from a person or business’ trash can is a common identity theft tactic.
12. Credit card offers, bills, insurance statements, and other mail all contain a enough information to be of use to a thief. You should shred all sensitive documents before throwing them away.
13. Be very careful with the information you provide when filling out warranty cards, subscription forms, prize-drawing cards and Web-site registration forms.
14. A good deal of stolen personal information comes from “pre-approved credit” offers you receive in the mail. Call the three major credit bureaus on 1-888-5-OPTOUT (1-888-567-8688) and ask to ‘opt out’ of the pre-approved credit lists. The ‘opt-out’ option has a limited duration and you must renew it regularly.