Free tips on how to protect yourself against credit fraud, identity theft, credit card skimming and phishing scams.
Credit Card Skimming Scam
Consumers have to be on guard and monitor their personal credit for fraud, now they may need to take a second glance at machines they use to swipe their debit or credit cards. The latest scam involves attaching a portable card reading device to normal devices that you use to swipe cards. One common place you could loose personal data is at an ATM machine.
Card readers are often used at trade shows, conferences, or in stores. They are very portable and popular. When a thief uses one, they can collect personal information that can later be uploaded to a computer. Later the scam artist makes a fake card that they will use at ATM machines to get cash or at stores to make purchases. Unless you monitor your bank accounts well, thieves can do a lot of damage before you become aware that someone is scamming you.
So buyers beware the next time you are in a restaurant, store, gas station, or any place where you can swipe your card. Be sure to take a good look at the machine to see if there are any attachments.
Hackers have been successful using wireless networks and collected customer information from popular business like TJMax, Marshalls, and HomeGoods. Because card readers are legal, it makes it hard to catch thieves who are skimming consumers.
If you want to swipe, using a credit card instead of a debit card can help minimize your loss. Most credit card companies don't make you pay for charges that are fraudulent and your bank account information would not be retrieved. If thieves use your debit card, they have access to your bank account information.
Here are some tips that may be helpul against scammers:
- Start being observant when swiping your cards, look for wires, attachments, or anything that appears unusual that is connected to the machine.
- Consider using a credit card instead of your bank debit card. Credit cards are usually insured against fraud.
- Always try to swipe your card yourself. If someone else swipes your card, make sure you can see if anything is attached to the machine.
- Monitor your bank accounts or credit card accounts frequently for fraud and purchases you did not make. Report any fraud immediately.
Protect Yourself From Phishing Scams
The past several weeks, America's financial landscape has drastically been changing. Banks are failing, stocks are dipping, and companies are merging. Consumers are wondering what will happen to them and they are rightfully concerned. This type of environment encourages many scammers' attacks. Scammers are 'phishing' so they can take advantage of vulnerable people who may be unaware of what is happening with their financial institutions. The technique is not new and the current state of our financial system makes it very effective for criminals.
'Phishers' send out emails and automated phone calls posing as representatives from a company that is your bank, lender, or mortgage company. They will ask you to verify or update your account information and may warn you that they've experienced a data breach and your account is in jeopardy. The truth is that they are not affiliated with your bank or other financial institution. They are not trying to help you, they want to use your personal information to run-up bills and empty your account.
The emails and phone messages will take you to websites that the scammers have built to imitate those of your financial institution. This is where they will try to collect your information, but do not be fooled. Even though the website looks authentic, scammers have created it that way to trick you. If you are not sure about the status of your bank account, loan, or mortgage, call the company directly. Never follow web addresses or phone numbers that are given to you by emails and automated phone messages.
Use the following tips to avoid phishing techniques.
- Never reply to emails or pop-up messages that ask for personal or financial information, and don't click on any links to other websites.
- Never send your personal or account information in an email. It is not a secure means of sending private information. This includes account numbers, PIN numbers, social security numbers, and passwords.
- Always review your financial statements to check for unusual or unauthorized activity.
- Use your previous statements to find the phone numbers and emails to contact your financial institution with any questions or concerns.
- Forward phishing emails to spam@uce.gov, and to the institution or company impersonated in the phishing email. You can also report phishing emails to reportphishing@antiphishing.org. The Anti-Phishing Working Group, a consortium of ISPs, security vendors, financial institutions and law enforcement agencies, uses these reports to fight phishing.
- If you've been victimized by phishing or any other scam, visit the Federal Trade Commission's Identity Theft website at ftc.gov/idtheft for important information on what steps to take.
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