An ounce of prevention is worth a pound of cure
Benjamin Franklin.
Summary: Credit card fraud isn’t only being done by a single individual to a single person at a time. Mass theft is on the rise. Keeping a close eye on your credit report, bank statements, and shredding documents after properly recording them, are steps one can take to stay on top of credit safety.
Identity theft is still a huge problem despite the fact that awareness has been spread about the issue. Though a lot of people have taken some steps, such as purchasing a paper shredder or switching to online statements, a lot of personal data is still being stolen. It is important that those steps are being taken; it lessens the risk that someone could stumble upon a person’s information and partake in a crime of opportunity. However, it isn’t enough. This is because while single person identity theft happens, there is also the theft of massive amounts of data being stolen, and then sold.
It isn’t just a problem of a lost credit card anymore. No longer are identity thieves only the people who steal the information of someone down the street, or hack into a computer for personal use. Now there are other concerns. You most likely won’t read an ad on Craigslist oreBay stating – John Smith’s credit-card info for sale first 10 dollars gets it, but it’s almost found that easily. There is a criminal enterprise that operates on the internet – millions of credit card numbers are being sold on the black market. After hacking and stealing, criminals are selling credit card data in bulk. The way it works is they hack a business, or other entity that houses large quantities of information. They then advertise this service for sale all over the internet.
According to the U.S. Department of Justice, credit-card data theft has grown 50 percent in the past decade. Millions of unsuspecting, and often unknowing, consumers’ credit data has been marketed to identity thieves around the world. Selling anywhere from 10-50 dollars for an average consumer’s credit data to hundreds of dollars for a consumer with high dollar credit cards, like American Express, according to the director of McAfee’s, Santa Clara, California office.
Computer programs written by identity thieves have reached an all-time high since 2007, numbering approximately to 130 million. Individual consumers aren’t the only ones to be attacked. The thieves have started targeting businesses, where credit-card numbers are plentiful. That isn’t to say that businesses aren’t fighting back. It costs the average business $150-250 for each card number stolen. That cost stems from legal settlements, hiring contractors to uninstall any and all viruses from their system, and the payroll for notifying consumers of the incident. The expenses for credit card fraud, in turn, affects the consumer in the form of increased prices from retailers and credit card fees. This type of theft is now surpassing the rate of traditional property crimes. It’s only a matter of time until it happens to everyone.
Individually a consumer will suffer if their data falls into a thief’s hands as they will bear the responsibility for clearing up their credit record along with the costs that go with that. But, it’s not just that the consumer’s credit-cards can be attacked. Identity thieves now target tax returns and the IRS may not divulge that information. Financial institutions are becoming increasingly better at spotting and squashing identity theft activity that’s the good news. The crime in as far as direct costs that consumers pay for a credit card’s unauthorized usage are limited. The bad news, analysts think that may change because the crime continues to grow.
So what should you do to try and protect yourself from this widespread crime? Experts agree that monitoring all three of your credit reports is a great way to become familiar with the regular activity present on these reports. Then, if something shows up that is out of the ordinary, you’ll know right away and can take action. The best way to prevent credit card fraud is to be aware of your information.
Also, it is a good idea to keep track of information you will need to use in the event of a data breach. Having a file in a safe location that contains important contact information for the credit card companies and banks you use will make it easier in a stressful situation. Then you can just access that file to report the necessary information. Saving the information for the places you should report credit scams to is a good idea as well. FBI Tips and Public Leads is the website for reporting credit fraud and other scams to the FBI. Reporting these crimes is a good thing for all citizens to do. When scams are not reported the criminals who perpetrate them are not being caught, which results in the scamming of more people. This vicious circle affects us all as consumers and taxpayers.
In the end, monitoring your credit won’t be expensive in comparison to the high price that victims of identity theft can pay. Lost savings, damaged credit which means higher interest rates, time off of work to name a few. The use of a 3 in 1 report that includes your credit score will help teach you more about your use of credit. It can save you both time and money because you are able to spot and stop fraud underway.
Remember to never give your information out over the internet or phone if you aren’t positive that the place requesting it is the actual company you already have a relationship with.
Joy Mali is a staff writer on TheWashingtonTimes and Examiner. Her work is also published on Lifehack, Yahoo and other mainstream sites. She like to share interesting tips to help people manage their personal finances & credit. Connect with her on social media sites
