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The use of debit cards has increased dramatically over the last decade, resulting in a dramatic increase in the number of cases of debit card fraud reported each year.  As companies try to combat the techniques that scammers are using to obtain debit card information, the best thing for individual consumers to do is to take some preventative steps to avoid becoming a victim of debit fraud.  The techniques used to obtain debit card information for fraudulent usage evolve constantly, but following these simple rules will reduce your risk of becoming one of the victims.

Check Your Statements Regularly

Most banking institutions limit the liability of the account holder when the debit card linked to the account is used fraudulently, but only if the bank is notified within the time period specified within the terms and conditions of the account.  If the bank is notified of the problem quickly, the account holder’s liability can be as little as $50.  If notification is received within 60 days of the incident, the account holder’s liability may be as much as $500.  To limit your liability for fraudulent use of your debit card, you should check your statements on a regular basis to ensure that all of the transactions displayed are transactions you initiated and inform your bank immediately if questionable transactions are found.

Conduct All Online Financial Transactions From Home

Many criminals interested in obtaining debit card information for fraudulent purposes are able to steal the information over unsecured computer networks or can install programs on a computer that will log debit card numbers and other financial information that is typed into the computer.  Using your home computer for online financial transactions is best because you can ensure that the amount of security on the computer is adequate to keep your financial information secure and that no programs to surreptitiously steal your financial information has been installed on the computer.

Make Sure Your Contact Information Is Up To Date

Many banking institutions have procedures put into place where a representative with the bank will contact you if they notice that something out of the ordinary is occurring with your account.  If they do not have up to date information to contact you, you may miss important communications about activity on your account.  As soon as any of your contact information changes, notify any banking institutions holding your financial accounts as soon as you possibly can.

As more people across the nation find themselves facing unmanageable debt, more companies that prey on the desperation of these individuals are created.  Debt elimination companies can be a good way for a person to gain control of their finances, but some debt elimination companies have been created solely to scam the individuals that come to them for help out of more of their money.  Debt elimination scams are easy to spot once you have been made aware of what is possible and what is not as many of these scams employ tactics that are illegal or impossible to accomplish. 

Creating A New Credit Profile

Some of the most common promises made by debt elimination scammers are promises to create a new credit profile for the person that will give them a fresh start.  Unfortunately, this is impossible using legal means.  What the person is paying for is a fake social security number that is then linked to a forged credit profile that the person can use to obtain credit.  This diverts creditors from viewing the person’s actual credit history by creating a blank slate for new credit information.  This is illegal and any person found using a fake social security number in this manner runs a good chance of being prosecuted as a criminal in a court of law.

Claiming Illegal Debt

Another commonly used debt elimination ploy is using “experts” to find flaws in credit agreements that render the debt “illegal” or “uncollectible”.  These fake professionals charge a fee to tell the individual that the person does not have to pay the debt and advises them to stop paying it while the company negotiates on their behalf to remove the information from their credit record.  This often leads to the individual being sued in court by the creditor for the non-payment of the debt and very few judges believe the “this debt is illegal” claim without some type of substantial proof.  In more than 98% of these lawsuits, the individual is ordered to pay the debt.

Before doing business with any type of debt elimination company, you should always review the company, its practices, and its reputation.  Businesses that have a great deal of complaints listed with the Better Business Bureau or many negative reviews on internet based consumer review websites should be avoided to ensure that you do not find yourself in a bad situation as well.

Identity theft is becoming a bigger issue each year as people go through the irritations of having their personal information stolen by thieves.  How can a person avoid becoming a victim of identity theft?  There are several steps that a person can take to keep their personal information safe from identity theft and reduce the risk of illegal activities occurring in their name.

Cases of identity theft can be scary and frustrating for the victims of the crime.  You cannot tell how damaging to your credit history and your credit score the theft will be and the criminals that have opened credit accounts using your information have no intention of preserving the credit score you have worked for so hard.  Victims of identity theft routinely get harassing telephone calls from credit card issuers and collection agencies trying to recoup money on accounts opened in the person’s name.  Some people have found that it takes longer than a year to go through all of the steps needed to fix their credit history and credit score.

What Should Be Done?

The first step in avoiding becoming a victim of identity theft is to make sure to take the time to review your credit history on a regular basis.  The first clue that a person’s personal information has been compromised is a credit account that they were not aware of has been opened and limited out quickly.  The criminals will use the information for a short amount of time to get all the money they can quickly and then discard the information and any credit cards attached to the information.  This reduces the risk that the criminal will be caught using the personal information or the credit cards that they obtained fraudulently.

While reviewing their credit history for identity theft, it is important that they know how to report identity theft if the person finds open accounts that they do not recall opening.  The person should notify the credit card issuer and the major credit reporting bureaus of their suspicions that identity theft has occurred as quickly as possible to eliminate the possibility of suffering massive losses.  If the account is still being used, it is important to close the account as quickly as possible.  In most cases, the thief that has stolen your personal information has already stopped using the account by the time you find out about it.

With the popularity of online retailers skyrocketing, protecting personal information while shopping online has become very important.  The number of consumers who have personal information stolen online grows each year and the amount of money lost to the thieves total in the millions of dollars annually.  Consumers need take steps to protect their personal information while on the internet and following these tips will reduce their risk of having their identity stolen.

Identity thieves continue to find new ways to obtain personally identifying information and credit card numbers.  Many of the tactics used are hard to identify as a scam and closely match legitimate services.  Because the payoff for the effort can be very large, these thieves put a lot of time, effort, and money into creating methods to get people to divulge personal information.  Individuals that are not paying attention can easily fall for these tricks without ever realizing what happened.

Email Scams

When using credit card numbers and personal information online, there are a few things to keep in mind to keep this information safe.  One important thing to keep in mind is that no company asks for personal information or credit card information in an email.  Most legitimate companies will only ask for credit card information when a purchase is made and no company requires a social security number to create an account.  If any of this information is requested by email, it is almost certain that the email is an attempt by a scammer to obtain your personal information.

The most common email scams duplicate emails sent from popular companies, such as Paypal, eBay, or Chase Bank.  The fake emails look like notifications and receipts that these websites email to individuals that have used their services.  There is typically a link in the email for the person to enter their account password and provide additional personal information.  This information is transmitted directly to the scammer’s computer for use in any way that they desire.

To avoid becoming a victim of this scam, never provide account or credit card information to any company by clicking a link in an email.  It is much more secure to go directly to the website using the URL associated with the company to see if there are any alerts attached to the account.  Most companies provide account holders with a copy of emails sent to them stored in a particular area of the account.  If the email does not show up in the inbox of the account on the website, that is a good indication that the email was fraudulent.

In today’s environment of high debt levels and declining wages, it is no wonder that so many individuals have marginal or poor credit scores and are looking for a way to repair them.  There are many scam artists out there willing to prey on those desperately seeking a solution and it seems that another new scam to obtain money from these solution seekers appears every week.  Would you be able to identify a credit repair scam if it was presented to you by a seasoned scammer?  Here is how you can identify some of the most common credit repair scams used today so that you do not become a victim of these thieves.

The File Segregation Scam

This seems to be one of the more prevalent credit repair scams out there, with thousands of individuals becoming victims of the scam each year.  The way that the scam works is that the scammer obtains an employee identification number from the IRS to be used in place of the individual’s social security number, thereby divorcing all new credit information obtained through the employee identification number from previous credit information linked to the person’s social security number.  Some people go a step further and use new addresses and phone numbers with the employee identification number to make it even harder to associate the two accounts.

Although this may seem like a great way to wipe the slate clean and start over, it could end up costing you a great deal of money and a criminal conviction.  In essence, the scam artist is teaching the consumer how to create a false identity, the use of which is a felony anywhere in the nation.  The price that is paid for using this method is way more than you will actually pay the scam artist to create this fraudulent identity.

The Negative Information Removal Scam

Some scam artists will tell potential victims that they can remove negative information from a credit report, for a nominal fee of course.  The problem is that accurate negative information on a credit report cannot be removed and may be visible on your credit report for seven years or more.  The most that any legitimate credit repair company can do is obtain a copy of your credit report, review it for errors, and notify the credit reporting bureau of any discrepancies that they find.  This you can do on your own for a much lower cost.

Identity theft is a terrible offense that continues to victimize the individual long after the theft has occurred.  The trouble begins when the theft is uncovered and continues as the individual attempts to correct the problems that are causing issues with their credit history.  If the individual is quick enough, they will be able to disclose the identity theft prior to the criminal attempting to use their information for fraudulent reasons.  The people that do not report identity theft fast enough may be denied a credit card or take significant hits to their credit history before they discover that identity theft has occurred.

Discovering Identity Theft

Generally, it is difficult to discover that identity theft has occurred because criminals are exceptional at covering their tracks.  The individual doesn’t know that their information has been compromised until the criminal has successfully obtained credit using their information or has used their personal information in other illegal manners.  The credit cards obtained using their personal information are typically sent to other homes, businesses, PO Boxes so the victim will never receive a statement for the credit card account or a default notice when the credit card balance is not paid.  If the telephone number entered on the application is fraudulent as well, the person won’t receive collection calls from the creditor and the creditor will have no way of getting in touch with the person whose information was used for the account.  It is very difficult to identify identity theft under these conditions.

Convincing The Creditor

If it is necessary to report identity theft, the person who has been victimized may have issues with persuading the creditor that they did not apply for the credit account and that they are not the person who has been using the account since its approval.  When identity theft is reported quickly, the individual can reduce the number of problems that they encounter by calling the creditor to cancel the account before the account is maxed out and it is easier to convince the customer service representative that their personal information has been compromised if the credit account has only been opened for a short period of time. 

Time Limitations

If identity theft is not reported quickly, a number of problems may occur.  Many creditors only acknowledge disputed charges made within a specific time period after the transaction has occurred.  If identity theft is not reported within that time period, the victim may be held responsible for the transactions made with that credit account.  Some creditors require verification that the person reporting the identity theft is not the individual who opened the accounts, which can be difficult to prove unless the thief has used entirely fraudulent addresses and telephone numbers for the account application.  If the debt has been sold to a collection agency before the identity theft is reported, the victim receive collection calls about the account for many years after the identity theft has occurred.

Experts estimate that nearly 20% of consumers have been the victim of cybercrime within the past two years at an estimated cost of $8 billion.  This cost includes financial losses related to identity theft, misuse of financial information, and the replacement of computers infected by malware.  It is much easier to protect yourself from becoming a victim of these scams when you can easily identify which communications may be fraudulent.

Delivery Notifications
A favorite of many scammers is the delivery notification scam.  With this scam, the scammer creates a fake email that looks like it is from a major delivery company or retailer and sends it to numerous consumers asking for a confirmation of personal information.  Individuals that fall for these scams can find their personal or financial information compromised or find malware installed on their computer that is difficult or impossible to get rid of.

E-Card Deliveries
Another common method of infecting computer systems with malware that can compromise personal and financial data is attaching a virus to an e-card that is mass mailed to unsuspecting consumers.  In many cases, these e-cards are sent to all of the contacts in a hijacked email address’s contact list so the e-card appears to come from a person the victim knows.  If you receive an e-card from a casual contact or from a person that has never sent you an e-card before, you may want to err on the side of caution and ask the person if they personally sent the e-card before opening the attachment or clicking on the link.

Auction Site Scams
One scam that is quickly gaining in popularity is the auction site scam.  With this scam, the scammer sends out a fraudulent email that appears to be from a popular auction website either confirming a high dollar purchase from the person’s account or claiming that there is an issue with an item that the person was bidding on.  Clicking the link in these emails allows the malware to be downloaded onto the victim’s computer where it can transmit data back to the scammer’s computer. 

Employment Scams
Today’s bleak employment landscape has given rise to another opportunity for scammers to gain access to the information on your computer by using employment offers as a lure to entice individuals to click on malware links.  Any offers of employment from companies that you do not remember applying to or emails offering work at home positions should be viewed with suspicion, as these are the most common methods used to expose the victim to viruses and malware.  Scammers are endlessly inventive, so it is best be suspicious of any email that does not look right, has grammatical errors, or does not conform to a contact’s typical activities.

Many people across the nation either have experienced or know someone who has experienced a business behaving badly.  This encompasses a wide range of barely legal but completely unethical behaviors on the part of the business to trick consumers out of their hard earned money.  Even though a small percentage of businesses engage in these behaviors, they tend to affect entire industries as confidence in the fairness of business practices are eroded across the board.  Here are some of the most notorious abuses and how to recognize them.

The Old Bait And Switch
This is one of the most common practices of unethical businesses and one of the hardest to detect until it is too late.  With this practice, the company promises the consumer an amazing deal, such as a heavily discounted price or extra services, to draw in the customer. After a short period of time, the price is raised or the person is billed for the additional services automatically, typically without warning.  The consumer then has the choice of paying the much higher price or paying an extortionate early termination fee to cancel their agreement.

The Fine Print
This technique is typically used in television or print advertisements and is one of the most easily recognized abuses by businesses.  The advertisement promises a great deal on a product or a service, but in tiny print at the bottom of the advertisement, there are a few lines that state additional conditions for the deal, such as an extremely limited quantity, automatic enrollment in another service, or that the price will be raised after a short period of time.  People that accept the deal as advertised are often hit with an unpleasant surprise that was buried in the fine print of the advertisement within a very short period of time.

Automatic Debits
Today, many businesses require you to submit a credit card number or bank account number for the “convenience” of automatic monthly payments to the company.  The problems typically come when the consumer tries to cancel the service or the company adds a new service to the contract and starts billing the consumer for the service without their consent.  It is best to be wary of whom you are giving your credit card or banking information to and in many cases, you may want to choose a service that does not require automatic debits to your accounts.

Term Layering
Layering is a fairly new technique used by businesses to make sure that consumers remain confused about the terms and conditions that they are agreeing to when they are doing business with the company.  Term layering is basically placing parts of the terms and conditions of a service in many different places so that it is difficult for the consumer to have all of the terms and conditions in a single place at the same time.  Some places where these binding terms can be found include product pamphlets, store receipts, store websites, and order forms, with only a portion of the terms and conditions printed in each place.

Every holiday season, scammers come out of the woodwork by the hundreds, armed with schemes to separate the unwary from their hard earned money.  These scammers know that in the rush of the holiday season, people are hurried and may not protect their personal information as well as they should.  Here are some of the most common scams found during the holidays.

Charity Scams
Scammers know that many people full of holiday cheer are more likely to give to charitable organizations in the hopes of spreading that cheer to the less fortunate among us.  These scammers send letters and emails to large numbers of people asking for donations for the holiday season when in reality they are just interested in lining their pockets and stealing your credit card information.  Be wary of any charitable organization soliciting donations that you have not heard of or cannot find a reasonable amount of information about on the internet.

Contact Scams
With this scam, the scammers send an email or social networking notification that an old friend or distant relative is interested in reconnecting with you.  Once the link in the email or on the social networking account is clicked, the person’s computer can be infected with any of a number of malware applications, including keystroke loggers to steal your passwords and credit card information.  At this time of year, it is better to be safe than sorry and be very cautious about clicking on links from people that you do not know or do not remember.

Luxury Goods Scams
During the holiday season, many websites spring up offering great deals on luxury merchandise, specifically clothing, jewelry, perfumes, and handbags.  Scammers use these websites to steal credit card numbers, to accept payment for merchandise that will never be delivered, or to sell inferior knockoffs that are worth much less than the website is selling them for.  A good rule of thumb to follow is if a deal seems too good to be true, it is more than likely that the deal is a ruse for a fraudulent activity.

Festive Item Scams
Another scam that is making the rounds this holiday season is the festive item scam.  With this scam, the scammers set up websites offering holiday ringtones, festive screensavers, or downloadable holiday songs and lyrics.  When a consumer clicks on or attempts to purchase one of these festive items, their computer can be affected with malware and viruses that lock up the computer and steal the person’s information.

Because of the importance of credit availability on many people’s lives, having access to the credit reports created by the three major credit reporting bureaus has become an integral part of financial planning.  The information on a person’s credit report has the ability to affect many different parts of a person’s life, including their ability to secure housing, their employment status, and how much they will pay for different types of financial products. 

The information in these credit reports is so important that the federal government has mandated that each person will be able to receive one free credit report from each of the three major credit bureaus for free each year.  These reports can be obtained all at once or at different times of the year so that the person can monitor for any changes during the year.

A Free Credit Report Can End Up Costing A Lot

Although the free credit reports are mandated by the government, many people have found that the credit report that they have requested has ended up costing them money.  In many cases, this is due to them making a request for a free credit report on a website other than the website endorsed by the government and unwittingly signing up for credit monitoring or other services provided by the company that runs the website.

The confusion typically results from the similarities in the names of the websites offering free credit reports.  The government supported website, which is the only one that guarantees the free credit reports required by law with no strings attached, has AnnualCreditReport.com as its web address.  Websites selling credit monitoring or other services while using the offer of a free credit report as a lure to draw in customers often use web addresses such as FreeCreditReport.com, MyFreeReport.com, or CreditReport.com.

These other websites offering free credit reports will attempt to entice the person into enrolling in services that can cost between $9.99 and $39.99 per month.  These fees are charged directly to a credit card number provided by the requestor as part of the requirements before the credit report can be accessed.  These services are generally offered as a free trial for a specific time period, but these companies know and are counting on the fact that many consumers will forget about the end of the trial and be billed for a couple of months of the service before they get around to canceling the subscription to the service.

It is important to verify the web address of the website you are on before submitting any personal information to obtain your credit report.  If you are not on the government endorsed website, then there is a good chance that you will be required to sign up for a service and provide a credit card number for billing before you are allowed access to your credit report.  If you comply, that free credit report can cost you plenty of money.