|
Credit Card Fraud
Revised and Updated by Max Uhls, Highland High School, Highland, IL
Addendum Written by Ginger Kastor, Millburn C.C. School, Wadsworth, Illinois
Original Paper Entitled “Fraud” (1999) written by Megan J. Forness, Rochester High School, Rochester, IL
Introduction
Webster's dictionary defines fraud as "deceit or trickery; an intentional deception; an imposter." With the increasing use of technology and the Internet in school settings, students and teachers should be aware of the many fraudulent practices designed to deceive unsuspecting users. Providing current and accurate information has been greatly facilitated with the advent of the Internet, yet students and teachers must use good judgment and caution when considering the credibility of sites and correspondence via the Internet and email. Credit card fraudulence perpetuates the crime of robbing users of access to personal information.
Issues
Credit card fraud is a very common practice; the crime is rather simple. Just as trickery and deceit flourish in our everyday world, so does this practice continue in cyberspace. Students should be aware that there are a number of fraudulent practices intended to deceive the unquestioning user, regardless of their age or education. Arming students with the knowledge to question potentially fraudulent practices will better equip them to use the Internet more productively.
The goal of the credit card con artist is very straightforward and can happen in many ways. The most common method is to make use of email. Emails such as this, commonly referred to as "spoof" or "phished" messages, are sent in an attempt to collect sensitive personal or financial information from the recipients. An individual would be contacted by email by a counterfeit company usually with a message to update information online. The message may contain an urgent tone, tempting the victim to respond quickly.
One should be very cautious of any email that asks you to submit information such as your credit card numbers or passwords. Reputable sites w ill not ask you for sensitive personal information (such as your password, credit card and bank account numbers, Social Security numbers, etc.) in an email. Do not respond to it or click any of the links. Instead, forward the email to the real company so it can be brought to their attention. Do not remove the original subject line or change the email in any way when you forward it.
21 Credit Card Fraud Prevention Tips:
- Keep a watchful eye on your credit card when you use it; make sure you get it back as quickly as possible. Don not let your credit card out of your sight whenever possible.
- Don't give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you're told there has been a 'computer problem' and the caller needs you to verify information.) Legitimate companies don't call you to ask for a credit card number over the phone. They already have this information.
- Never respond to emails that ask for your credit card info via email -- and don't ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called 'phishing' scams.
- Never provide your credit card information on a website that is not a secure site.
- You can sign the back of your credit card, but do so as soon as you receive them. It might be better to simply write “check for photo ID” on the back of your card. This hinders credit card thieves.
- Shred all credit card applications you receive. Do not just tear them up and throw them into the same trash bag.
- Never write your PIN number on your credit card -- or have it anywhere near your credit card (in the event that your wallet gets stolen).
- Never leave your credit cards or receipts lying around.
- Shield your credit card number so that others around you can't copy it or capture it on a camera. Remember, many cell phones feature camera capabilities.
- Keep a list all of your account numbers and expiration dates in a secure place, as well as the phone number and address of each bank that has issued you a credit card. Update this list each time you get a new credit card.
- Only carry around credit cards that you absolutely need. Don't carry around extra credit cards that you rarely use.
- Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account -- reconcile it monthly. Save your receipts so you can compare them with your monthly bills.
- If you find any charges that you don't have a receipt for – or that you don't recognize – report these charges promptly (and in writing) to the credit card issuer.
- Always void and destroy incorrect receipts.
- Shred anything with your credit card number written on it.
- Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.
- Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately. Barney Fife showed how to do this in an episode of Andy Griffith 30 years ago!
- Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).
- Ideally, it's a good idea to carry your credit cards separately from your wallet – perhaps in a zippered compartment or a small pouch.
- Never lend a credit card to anyone else.
- If you move, notify your credit card issuers in advance of your change of address.
If you suspect credit card fraud:
If your credit cards are lost or stolen, contact the issuer(s) immediately.
Most credit card companies have toll-free numbers and 24-hour service to handle these emergencies – they are eager to prevent credit card fraud.
According to US law, once you have reported the loss or theft of your credit card, you have no more responsibility for unauthorized charges. Also, your maximum legal responsibility under federal US law is $50 per credit card; many credit card issuers will waive that fee for good customers. Following these suggestions will go a long way in protecting you from credit card fraud.
Minimizing Potential for Succumbing to Fraudulent Sites
Although fraudulent practices and the people behind them may seem to possess no redeeming qualities, they may serve a useful purpose if used as educational tools. The mere existence of such crimes requires both teachers and students to think more critically about the information and how it is to be preserved. Thinking critically is a skill that will be useful to students throughout their lives, even when they are not using technology.
Annotated Web Sites
Internet Fraud Watch http://www.fraud.org/internet/intset.htm
This is a good site that exists to help consumers distinguish between legitimate and fraudulent promotions in cyberspace and route reports of suspected fraud to the appropriate law enforcement agencies. You will find a link to an online incident report form. It also provides a link that includes some useful basic Internet tips.
Trend in Credit Card Fraud http://www.merchant911.org/fraud-trends.html
Credit Card Tips for Merchants, Types of Credit Card Fraud, and New Prevention Methods are discussed at http://www.fraudinvestigator.co.za/credit_card_fraud.htm
Last Updated:
08/02/2005
|