In this age of information, credit fraud is not a difficult
crime to perpetrate. The idea that a thief could gain access to
your account information or personal data is not as implausible
as you might think--social security number misuse has increased
over the last two years, resulting in a variety of
credit-related crimes.
Fortunately, you can fight back against credit fraud by
learning how credit fraud and identity theft occur, and by
actively monitoring your credit report for unauthorized account
use on a regular basis. Your credit report will list any new
activity on accounts you haven’t been using, as well as new
accounts that you did not open.
One of the best ways to keep track of new information that is
added to your credit report is the CreditCheck Monitoring
Service, which provides Online Monthly Monitoring Alerts to
inform you of new derogatory information, recent inquiries into
your credit, and several indicators of possible credit fraud. If
you would like to sign up for the CreditCheck Monitoring
Service, 
click
here . You’ll get a free copy of your credit report when
you sign up for a free 30-day trial.
To have credit report information at your fingertips is the
best way to shut an identity thief down--you can begin the
process of notifying your creditors of the fraud, changing your
passwords, and closing down fraudulent accounts before they wind
up in the hands of collectors and compromise your good credit.
How Credit Fraud and Identity Theft Occur
Specific personal data, such as your Social Security number,
home address and mother’s maiden name, can be all a thief
needs to obtain a fraudulent driver’s license, take over
existing bank or credit accounts, divert card statements to a
different address, or even apply for new credit card accounts
under your name. Thieves can obtain this information in variety
of ways, including fishing through trash for account statements,
lifting cards from lost or stolen purses, wallets and
briefcases, or through telephone or Internet scams.
How to Prevent Credit Fraud and Identity Theft
Customers may be in a position to prevent potential identity
theft by closely guarding their personal data. For example,
never give out your Social Security number over the phone unless
you know the company you are dealing with and have initiated the
call.
Similarly, if your mother’s maiden name is not likely to be
a secure password, consider changing it to something a little
more difficult for a thief to obtain. Also, carry only the cards
you are actually going to use, and leave official documents like
Social Security cards, passports and birth certificates at home
or in a safety deposit box.
Account Takeover Fraud
Credit card account statements contain a lot of sensitive
information that you don’t want thieves to get a hold of, and
even store receipts will frequently have your credit card number
printed on them. Sometimes an account number is all a thief
needs to make charges and obtain cash advances. It’s a good
idea to shred all financial documents before discarding them.
A thief in possession of sensitive information about you may
also be able to go one step further, and commit account takeover
fraud, simply by calling your creditor, reading off your account
number, a partial Social Security number and your mother’s
maiden name, and asking them to change the mailing address on
the account. For this reason, if you don’t receive a credit
card statement on time, you should call your creditor
immediately to verify that the address has not been changed.
Checking your credit report may also reveal activity on an
account you don’t use--get a FREE
copy of your credit report to see your currently open
accounts, and stay on top of the situation with the CreditCheck
Monitoring Service.
Pre-Approved Credit Offers
Another source of potential credit fraud is pre-approved
credit offers. A thief who intercepts one may fill out the
application and change the address to obtain a credit card in
your name for which you will never receive a statement. (To
combat this, some creditors will not issue a card to a new
address on a pre-approved offer certificate, but this policy
isn’t universal.) This makes checking your credit report
especially important, because it will show you if there are
accounts being reported in your name of which you are not aware.
The thief may even make the minimum payments for a while,
until such time as the card is maxed out. Then the account would
eventually be turned over for collections--in your name, and
listed on your credit report. If you would like to sign up for
the CreditCheck Monitoring Service,click
here. You’ll get a free copy of your credit report when
you sign up for a free 30-day trial.
The CreditCheck Monitoring Service Can Help
In many cases, the only way you’ll catch credit fraud early
is by obtaining a copy of your credit report. However, most
consumers may not have time to order a copy of their credit
report on a month-by-month basis, and read through all the
information looking for the items that may indicate possible
credit fraud.
That’s why the Credit Check Monitoring Service is ideal for
consumers who want to keep current on their credit information.
At roughly half the cost of ordering your credit report every
month, the CreditCheck Monitoring Service provides Online
Monthly Monitoring Alerts that show you only recent changes for
easy reference. In addition, you can obtain unlimited free
copies of your credit report at any time during your paid
membership!
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Information provided by ConsumerInfo.Com is for
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professional financial or credit advice.
Published: August 28, 2002
