When we think of credit card fraud, we often think of individuals who have had their wallets or purses stolen and their credit cards used to finance unauthorized purchases. Or the victims of identity thieves who learn that they owe thousands of dollars in debts that they never incurred. But credit card fraud hurts merchants and businesses, too. And fraudsters are getting bolder every day.
Consider the case of Paul Thibodeau, the owner of Paul’s Outdoor Kitchens in Parrish, FL. He took a relay phone call that he assumed was being made on behalf of a deaf customer. The caller ordered thousands of dollars worth of kitchen materials. Though he listed his address as Fort Meyers, FL, he requested that the items be shipped to Athens, Greece. Thibodeau became suspicious when the caller gave him several credit card numbers, all of which were declined. Thibodeau’s suspicions were correct; his caller wasn’t deaf at all, but an identity thief who was giving out stolen credit card numbers. His plan was to convince Thibodeau to wire money to a fictitious shipping company. Then the thief would pocket the proceeds, and Thibodeau would be at a loss.
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Identity theft is a real threat to our world today. Scammers all over the world have take the identity of another person and used their good credit to purchase items, all the while never repaying them. This happens more often than we really care to admit and has become the source of a great deal of headaches for creditors and consumers alike. It is for this reason that some credit card companies and payment processors have begun to offer what is known as random credit card number generation.
This has proven to be really helpful for many people, especially those who need to give their credit card numbers over the internet or the telephone. This prevents you from having to give others your credit card number and makes it much safer to shop online or over the telephone at the same time. Many credit card companies and payment processors call these numbers “Virtual Account Numbers”.
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There are few things just as disturbing as the thought of having your identity stolen. All a criminal has to do is get a hold of a few of the right numbers and words, and they can take over your virtual and financial life, burying you in debt that you had no hand in incurring and ruining your credit. It can take years and a lot of money to get everything sorted out, and afterwards you’ll never feel quite as secure, knowing just how bad things can get if you aren’t careful.
It’s a strong argument for guarding your financial information closely, and people try. You know you should never give out your financial information over the phone, and never to anyone at all unless you have some way of being certain you’re talking to a representative of a legitimate business, and you know not to give it out to strangers. But are you throwing your identity out with the trash?
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According to a recent poll by Experian, one in five Americans has reported they have experienced some form of identity theft. If it happens to you, and your identity is stolen, you might be in for a lengthy hassle that could cost you your credit rating and leave a permanent blight on your financial records.
How Credit Card Theft Starts
Thieves start by targeting your personal information: Social security numbers, bank statements, tax reports, credit card debit information and passwords, or even your checkbook. Don’t leave this valuable information lying around at your office, or in your car. Be aware that you are leaving a door open for anyone to get access to your bank account or credit card information. Question anyone who asks for your credit information, including employers; find out what their privacy policy is and get a copy of it. Shred all documents no matter how insignificant they may seem to you. In addition, don’t ever lend your credit card to ANYONE, including family members, unless you are willing to take on their debt personally. Many family arguments have ended up in court with bitter feelings from one time casual credit card or debit card lending that got out of hand. When you apply for a credit card, be certain that their online application is secured, and the privacy notice is posted.
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