LETTER FROM NOLA ~ SUMMER 2005
FRAUD ALERT! How many times have you seen this lately? Sometimes the fraud alert is itself fraudulent. How can you combat the massive rise of identify theft and credit card fraud?
Most of the new forms of financial fraud involve the internet in one way or another. And, credit card fraud is often first preceded by identity theft. This is frequently done by a tactic called "phishing" - a fake email which requests that you verify your personal information.
Just as you wouldn't leave your home or vehicle unlocked, we all need to learn how not to leave our personal information "unlocked". But, because many of us don't even know how personal information can be obtained, we don't know how to keep it secure.
First, your personal information includes your name, address, date of birth, and other tidbits such as your Mother's maiden name, and your prior addresses. Also included in this category are bank and brokerage account numbers, social security numbers, email addresses, passwords, and the like.
Before the advent of the internet, this information was often stored in a home safe or at the bank. The only way to access it was to break into the safe (or the bank) and physically take the information. It was easy to guard against this kind of theft, and you would always know if such a theft had occurred.
Now, thanks to the internet, not only is your information no longer stored in a safe, you can no longer determine if the information has been accessed, by whom, and for what purpose, until it is too late. It is also no longer necessary to physically steal a credit card or a check - a few keystrokes can accomplish the same thing, without the victim being aware that anything has been stolen.
Even if you never use the internet, your personal information can easily be obtained (legally or otherwise) over the internet. Your posted mail can be stolen without your knowledge, and the combination of these two can lead to bank account thefts and credit card fraud.
So, what can you do to protect yourself? Here are a few of the most basic steps that everyone should take:
- Order your free credit report and review it carefully. If anything is amiss, contact the reporting company immediately to begin the process of getting the information corrected. It may also be necessary to contact a law enforcement agency if there is evidence that someone else is using your identity.
- If you use a computer, make sure that you have an up-to-date virus program running at all times.
- If you access the internet from your computer, make sure you have a "firewall" installed at your access point. If you don't know what I mean by this, you are already in trouble. Most routers have some firewall protections built in, but you should check with the manufacturer and/or your ISP to determine the adequacy of the firewall.
- Use on-line banking for all your bank, brokerage, and credit card accounts. Access them frequently to determine if there is any fraudulent activity, and if so, report it immediately. (However, only use on-line banking if items 2 & 3 have been done).
- If you order products on the internet, use one low-limit card for all your transactions, or consider using a card such as American Express which aggressively investigates credit card fraud.
- Shred or burn all of your discarded mail. Get a locking mail box or use a P.O. Box.
- Never respond to email or telephone requests for personal information from anyone, even if it is your own bank.
- If you use on-line auctions, such as E-Bay, always use PayPal to settle your account. Report any suspicious auction activity to the on-line provider immediately. The fastest growing and largest on-line frauds involve on-line auctions.
Practicing these steps can help you to prevent and detect fraud. Our own company was the victim of a credit card fraud when a fraudulent airline charge was made to our visa account. By using on-line banking, we had detected it within two days of the activity, and had the card cancelled.
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