In today’s
world, credit cards are a great convenience, but they can cause some major
financial problems if they fall into the hands of criminals.
Government agencies, merchants and consumer groups continually try to find ways
to thwart credit card theft. The NYC Department of Consumer Affairs (DCA) Office of Financial Empowerment offers basic
information about credit card fraud and what to do if you're a victim. To
access this information, click here. DCA also provides common-sense tips for victims of identity theft.
According
to DCA, "Federal and state law requires that electronically issued credit
card receipts redact the credit card expiration date and all but the last five
numbers of the credit card." Federal law also limits your liability to $50
in case of theft, though many banks waive even the $50, as well as any fraudulent
charges made with your card. (You may be asked to sign an affidavit saying
that the charges are not yours).
How Fraud Happens:
In what is
known as "skimming", someone can make a duplicate imprint of your
card and sell the number to third parties to make internet or telephone
purchases. Some imprint your information on a blank card, and some try random
groups of numbers until they find one that matches an account in good standing.
Protect Yourself:
- Do
not give your account number over the phone unless you initiate the call and
know that the company is reputable. Never provide credit card info when, for
example, someone calls you and says there has been a "computer
problem" that requires you to verify credit card information. Legitimate
companies don't do this. Similarly, don't be fooled by callers who claim to be
"fraud investigators" who need the security code on the back of your
card. If in doubt, call the toll-free number on the back of your card and ask
if there is a problem with your account.
- Never
respond to e-mails that request credit card verification. And never respond to
e-mails that direct you to a website to verify credit card information, even if
the site looks legitimate (again, a legitimate site will not do this). This
known as "phishing."
- Protect
the number on your card. A cross-cut paper shredder is a good investment,
and shredding any documents with your credit card number before recycling is a
good habit.
- Don't
write your personal identification number (PIN) on your card or even on a paper
in your wallet, since your wallet could get stolen. Instead, keep a list
of all account numbers and expiration dates in a secure place, along with the
telephone numbers of issuing banks. Some consumer advocates recommend that you
carry credit cards separately -- and that you never carry more credit cards
than you need.
- Regularly
check your credit card transaction record online rather than waiting until you
receive your monthly statement. This will quickly apprise you of any
unauthorized charges. And report suspicious activity to your credit card
company immediately. Most have toll-free numbers.
More Resources:
Apart
from information you may find on DCA's Office of Financial Empowerment website,
a great deal of substantive material relating to credit card fraud is available
online. For example, the FBI provides a list of tips regarding credit card fraud and how
to prevent it. The Federal Trade Commission also provides many tips on how to avoid fraud. Consumer-oriented groups such as ScamBusters.org, unaffiliated with government
agencies, provide useful information on how to thwart credit card fraudsters.
Finally, you may want to check out
the not-for-profit National
Consumers League Fraud Center. And, of course, you may call
my office at 212-669-7250.
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