112th Precinct Community Council

Credit Card Fraud

Apr 08, 2007

Credit Card Fraud
By Heidi Harrison Chain

A fellow worker asked me for help with her credit card problem. Her card had expired and she did not receive her new card in the mail. She called the company to learn that the new card had been mailed and activated. Someone else had been charging on the account including a trip to Japan. The criminal had called the company, given them a cell number as the new number for the account. The credit card company entered the new number into the system and the criminal was able to activate the new card using the cell number.
There are precautions that you can take. Be aware when your credit card expires. IF your new card does not come- CALL THE CREDIT CARD company immediately and follow up with a letter sent certified mail return receipt requested. You want to have proof that your letter notifying the credit card company of the fraud has been received. Your letter should include your name, account number(s), and the charges that you question. Once you notify the company- you are not liable for the further charges. (Federal law provides that your maximum liability is $50 per credit card).
In the event that you are a victim of credit card fraud, advise the credit bureau companies about the fraud. Ask these companies to include a fraud alert in your file including a statement that creditors should get your permission before opening any new accounts in your name. At the same time ask the credit bureaus for copies of your credit reports. Credit bureaus must give you a free copy of your report if it is inaccurate because of fraud. Review your reports carefully to make sure no additional fraudulent accounts have been opened in your name or unauthorized charges made to your existing accounts. In a few months, order new copies of your reports to verify your corrections and changes and to make sure no new fraudulent activities have occurred. Contact Phone Numbers for the Fraud Department of the three major credit companies: Equifax 1 800 525-6285 to report the fraud, Experian 1 888 EXPERIAN
Trans Union 1 800 680-7289.
Credit card fraud is prevalent in our area. There are many ways that people?’s cards are stolen in addition to the card being taken with the wallet. There are dishonest clerks working in some stores or restaurants who use copies of the charge slip to get the account numbers and charge on your account. The precinct also warned about stores that use the old sliding method with a carbon to process the charge. One way that clerks copy credit cards is called ?“skimming?” ?– This is when a clerk in a store or someone at a restaurant puts the credit card thru a magnetic card reader. The dishonest employee then copies the data onto a blank credit card and may either use the account or sells it to someone.
The Federal Trade Commission has advice on how best to protect yourself. Do: Sign your cards as soon as they arrive. Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch. Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place. Keep an eye on your card during the transaction, and get it back as quickly as possible. Void incorrect receipts. Destroy carbons. Save receipts to compare with billing statements. Open bills promptly and reconcile accounts monthly, just as you would your checking account. Report any questionable charges promptly and in writing to the card issuer. Notify card companies in advance of a change in address.
Don't: Lend your card(s) to anyone. Leave cards or receipts lying around. Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total. Write your account number on a postcard or the outside of an envelope. Give out your account number over the phone unless you're making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.