"Preventing Credit Card Fraud"

 

Anyone can be a victim of credit card fraud. A 2014 Global Consumer Fraud Survey by Aite Group found that 27% of all cardholders - debit, credit and prepaid - have experienced card fraud in the past five years. It turns out; we aren't very smart when using our credit cards! The Aite survey says that 49% of global consumers exhibit at least one risky behavior, which puts them at a higher risk of financial fraud.  Don't be a victim! SAVED BY THE BELL has some tips to keep you safe.

The credit card system in the United States is a goldmine for thieves! The U.S. is the last major market still using magnetic stripes. Those cards can be copied very easily. Much of the rest of the world uses chip card technology.  Chip cards are payment cards that have an embedded chip. Every transaction is unique; giving consumers advanced security for in-store payments. The cards are also more difficult to counterfeit or copy. The technology is based on a global card payment standard called EMV, currently used in more than 80 countries. What does EMV stand for? It's named for its backers: Europay, MasterCard and Visa. There are more than 2.5 billion chip cards issued across the globe. Have you seen the cards? Take a look:

EMV Card

To find out more about EMV cards, visit http://www.gochipcard.com/

 

WILLING AND ABLE:
Where does the United States rank when it comes to global credit card fraud? The Aite Group survey said the United Arab Emirates had the highest rate of fraud globally, followed by China, India and the United States. One of the reasons the United States ranks high on the list, is because our country hasn't fully adopted EMV technology. Get ready, the secure system is coming soon. Banks have an October target date to start issuing new credit cards embedded with the microchip. However, many banks have already started distributing cards with the EMV technology to customers. But despite the October target date, a majority of retailers say they aren't prepared. According to a recent survey by ACI Worldwide, just 12% of retailer respondents said they are already compliant. Only 19% say they are confident they will meet the October deadline. Small businesses also have some work to do. A survey by Intuit found that only 42% of small businesses plan to make the switch.

SAVED BY THE BELL QUICK TIP:

Countries implementing EMV have reported a decrease in card fraud. However, even after the EMV technology fully rolls out in the United States, credit card fraud will not disappear. Many merchants will still use terminals that accept magnetic stripe cards for years after EMV has partially been rolled out. So what changes will you notice when shopping? You will no longer have to swipe your card. Instead, you will dip your card into a terminal slot and wait for it to process. This means the transaction time will take a bit longer than you're used to. We will have more on EMV technology in a future installment of SAVED BY THE BELL.


THROWING IT ALL AWAY:
Have you ever thrown away bank paperwork or account information in the trash? If you have, shame on you! 24% of people in the Aite Group survey admitted to doing so - making it the riskiest behavior exhibited by global cardholders.

SAVED BY THE BELL QUICK TIP: 

Don't throw away sensitive documents in the garbage! Invest in a good quality shredder.  Make sure you shred your credit card and bank statements. In fact, I shred all credit card receipts and any documents with my name on it. Don't forget to shred old credit cards as well. What kind of shredder should you buy? Cross-cut shredders are a good choice because of their affordability and durability. In this case, bigger isn't better. The *smaller* the cut pieces, the higher the security.  I don't recommend buying strip-cut shredders. They do exactly what they say: shred the document in strips. You've probably seen it in the movies: a determined thief with time and patience reconstructs sensitive documents with only tape. We wouldn't want this happening to you.

 

PROTECTION:

Locking your smartphone should be a no-brainer. However, 20% of respondents in the Aite Group survey admitted to leaving their smartphone unlocked. Do you conduct financial transactions on your smartphone? Think about it - if your phone was lost or stolen, anyone could get a hold of your personal information.  A recent survey by Javelin Strategy & Research found that almost 1-in-4 bank customers say they primarily use a mobile device to access a checking account.

 

SAVED BY THE BELL QUICK TIP:

If you haven't set up a screen-lock password for your smartphone, do it now! The same goes for your pc/tablet/laptop.  Having trouble choosing a password? Now is the time to be creative. Earlier this year, SplashData released its annual worst passwords list. Stay away from simple numerical passwords such as "1234." The word "password" also held the top spot on the worst passwords list. Some other tips: don't use your birthday or your birth year and make sure you have antivirus software installed on your computer.

 

I MADE A MISTAKE: 

So - you did the right thing and picked a PIN number that no one could easily identify. The problem is, even you can't remember it!  So, you put a note with the PIN number on your debit and credit card to remind you. Big mistake! The Aite Group survey found that 11% of respondents admit to making a note of their PIN number and keeping it with the card. 

SAVED BY THE BELL QUICK TIP:

Keeping your PIN number with any card is very dangerous - especially a debit card! If your debit card is lost or stolen, you could lose all of the money in your account. That could be thousands of dollars! Acting fast limits your liability for charges you didn't authorize. According to law, federal law limits your liability for a lost or stolen debit card to only $50. However, you have report the loss within two business days after you realize your card is missing. Your liability jumps to $500 if you report the loss after two but before 60 days. If you report the loss more than 60 days after the statement is sent to you - sorry to say, you will lose all of the money in your account. That's why I never use a debit card when shopping. With a credit card, your liability for a lost or stolen card tops out at $50. However, if you report the loss before your credit card is used, the law says you are not responsible for any charges you didn’t authorize. If your credit card number is stolen, but not the card, you are not liable for unauthorized use. How can you be safe? As a preventive measure, keep a close eye on all of the accounts tied to the card. If you use the card often, check the balance at least once a month to make sure the activity is normal.

 

I WANT HER:

Have you ever received an email similar to this? "Dear Mr. or Mrs. Bank Customer - XYZ bank values your business! During our regular update and verification of internet bank accounts, we could not verify your current information. Please update your information by clicking on this link." Don't fall for scams like this! The Aite Group survey found that 7% of people responded to an email or phone call seeking bank information.
 

SAVED BY THE BELL QUICK TIP:

If you get an email like this, the first thing to do is nothing. Don't click on the link, no matter how authentic it may seem. Some scammers make their websites look like the real ones, so it's easy to be fooled. You should verify the authenticity of the email by contacting the bank as you would normally. 

 

UNPROTECTED:

Do you use public Wi-Fi? A recent survey from the Identity Theft Resource Center found that 75% of respondents used public Wi-Fi in coffee shops and restaurants within the last 12 months. While many of us are using public Wi-Fi, we aren't being safe. The Aite Group survey found that 17% of respondents admitted to using unprotected PC's or internet links to shop.

 

SAVED BY THE BELL QUICK TIP:

Public Wi-Fi networks are convenient, but can be unsafe. In fact, a majority of us say we don't feel secure using public networks. The Identity Theft Resource Center says 79% of people believe that using a free public Wi-Fi connection leads to identity theft. Think about it - some don't require passwords to get access or the passwords are in plain view for everyone to see. How can you be safe? Browsing the internet is fine, but don't conduct any financial transactions or use credit cards on a public system.
 

Here are some other credit card security tips you need to know:
 

CHECK IT OUT:
Check your credit report at least once a year to see if anyone has opened unauthorized credit using your name. By law, you are entitled to receive one free report a year from the three credit reporting bureaus (TransUnion, Equifax and Experian.)  So take advantage of it!  

I'VE GOT MY EYES ON YOU:
Beware of skimming! If you hand your credit card to anyone, keep a close eye on it.  The skimmer could be a waiter/waitress or cashier that takes your card to make a legitimate charge. But then, the thief also runs the card through a skimmer - a device which stores the credit card information. The thief will then use the stolen information to make fraudulent charges. This doesn't mean you should be mistrustful of any waiter/waitress that takes your card. You should just be observant. Victims of skimming typically don't notice the theft until they check their credit card statements. The best way to detect if your card has been skimmed is to closely monitor the accounts.

SIGN YOUR NAME:
Some credit card receipts have a blank line for the tip. Don't leave any blank lines open! If you opted to give the waiter/waitress a tip in cash; draw a line through any blank spaces above the total.

MAKE THE WORLD SAFE: 

Before charging anything online, make sure the page of the website where you enter your card information begins with "https" rather than just "http." The "s" stands for secure. Your credit card information is at risk of being stolen if the site is not secure.

KEEPING TRACK:
If your wallet was stolen, you need to be able to quickly cancel all of your cards. Keep the information on all of the accounts in a safe or another secure place in your home.

DO YOU SEE WHAT I SEE?

Whenever entering your PIN number at the checkout counter or ATM machine, shield the pin pad from any onlookers. Use your body or hand to block anyone from seeing what you are typing. 

VACATION: 
If you plan to use certain credit cards on vacation, let the card issuers know you will be traveling. How are they supposed to know you are vacationing in Barbados? If the card companies notice any out the ordinary activity, they will suspect theft and decline the charges. We want that to happen if someone steals your card, but not when you are on vacation.

WE DON'T NEED IT:
Do you get a lot of credit card offers in the mail? It's possible someone could steal your mail and open credit in your name. The Federal Trade Commission says you can opt out of receiving offers for 5 years or permanently. To opt out, call 1-888-567-8688 or visit www.optoutprescreen.com. The three nationwide credit reporting companies (Equifax, Experian and TransUnion) operate the phone number and website.

You've just been SAVED BY THE BELL!!