Fraud Protection

Phishing Fraud

If you shop on the Internet you should know about phishing. Phishing is when someone contacts you through a pop-up message or email message requesting that you provide confidential information to update your account. Usually the bogus message provides a link for you to click on that will take you to a dummy site. The bogus site will request that you re-enter information such as your social security number and credit card number. Once this information is entered the scam begins. Usually within several hours your credit card account has been compromised. Unfortunately with this scam it takes several days for people to discover it. When you go to use your credit card you will find it is maxed out. A fraud protection tip for this scam is never to answer an email requesting you for personal account information.

Fraud Protection from ATM Theft

Good Samaritan Scam

Not all ATM machines are created equal. One of the most common scams is the Lebanese Loop. In this scam your credit card becomes stuck inside an ATM machine. While you’re trying to retrieve it someone will come up to the ATM machine and offer to help you. This is when the scam begins. Usually these people will offer to hold a cancel button while you keep entering your pin number. While you do this they are memorizing your pin number. When this doesn’t work most people will go into the bank to report the problem. By the time you get back outside to the ATM the Good Samaritan and your credit card are gone. A fraud protection tip to avoid this scam is to never allow anyone to see you enter your pin number.

Skimmers

Another ATM scam is the card cleaner. This so-called card cleaner is placed either on top of an ATM machine or along side of the magnetic strip reader. Once you run your card through the cleaner it collects your credit card information. These card cleaners can read up to several hundred credit card numbers and then the thieves remove them. Never run your card through one of these magnetic strip readers, even if it states to slide your card there first.

Fake ATM Machines

Unfortunately thieves are getting more technologically savvy as the banks improve their technology. One of the most difficult to spot scams is the fake ATM machine or the fake keypad. With the fake ATM machine you run your card through a magnetic strip reader and then wait for your cash. Unfortunately, the cash never materializes. Instead, you are left with a screen that usually says ‘out of order’ or ‘out of cash.’ The only way to protect your account at this point is to call your credit card company or bank immediately to report suspected fraud. One form of fraud protection from this scam is to use the same ATM for all of your cash withdrawal transactions. This way you will notice if there is something unusual about the machine when you use it.

Cash Traps

This scam is similar to the ATM Good Samaritan scam. A customer tries to withdraw cash from an ATM but no cash is dispensed. What has happened is that a criminal nearby has put a sleeve inside of the cash dispenser so that it traps your cash. Customers usually walk away or go inside the bank to report the problem with the ATM machine. When this happens, the thief walks up to the machine and removes the sleeve and your cash.

Fraud Protection from Shoulder Surfing

This is one of the most frequent forms of credit card fraud. This scam happens when you are paying for items at a store with your credit card. If a store is busy, a cashier may lay your credit card down on the register itself or on a nearby table. You may even do the same thing waiting for the cashier to ring up the sale. People that are near you, especially thieves that specialize in credit card fraud can quickly memorize your credit card number. A fraud protection tip to avoid this scam is keep your credit card in your hand until the cashier needs it to process your payment.

In Conclusion

There are various forms of credit card fraud protection that you can utilize to protect yourself. Use your credit card like you use your debit or checks, making sure that you reconcile all of your transactions at the end of the month. If you lose your card or suspect fraud report it immediately to your account’s customer service number. The sooner you report suspected fraud the faster your credit card company can catch a thief.