How to detect and avoid credit card fraud

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It sometimes seems there's no safe way to go shopping anymore: carry cash and you risk getting mugged. Use a credit card or a debit card and fraud artists can hack into retailers' records and steal your personal information. But there's hope on the horizon in the way of cryptography and security chip-encrusted credit cards. In the meantime, here are a few tips to keep your credit cards safe:

Review your card statements carefully, and promptly report any unauthorized or suspicious use of your card. Even after the matter is resolved, continue to monitor your statements to ensure the problem does not reappear. <



Always print a receipt when shopping online with your credit card

-  Hold on to all receipts and check them against your credit card statements. Be particularly alert for changes to the amount left for tips at restaurants and bars.

-  Choose difficult passwords when reviewing your credit card statements online. Don't use obvious passwords such as your mother's maiden name and change your paswords often. Don't write them down and leave them in your wallet, and don't share them with anyone. Don't store your password on the computer.

-  Always carry your credit cards and never leave them unattended. Mastercard says the most common place credit cards are stolen is in the workplace. Places such as cars, restaurants, and hotels are also popular with thieves.

-  Obtain a credit report on a regular basis from each of the Canadian national credit reporting agencies, Equifax and TransUnion to ensure there have been no violations of your credit security. (Links to these agencies are to the right)

-  Never respond to emails asking for your credit card numbers, no matter how legitimate they appear. Bank and credit card companies will never ask for your information over email. If they do, it means it's not them but rather fraud artists engaging in a practice dubbed "phishing."



YOUR MAILBOX'S ROLE IN IDENTITY FRAUD

Fraud artists can use the credit card statements in your mailbox to steal your identity. Canada Post offers the following tips:

-  Remove your mail from your mailbox promptly after delivery.

-  Invest in a paper shredder and shred all discarded paperwork that contains financial information, such as credit card statements, credit card offers, credit applications, and receipts. (Placing the shreds into garbage bags, not in the recycling box, will further discourage identity thieves.)

-  Have a trusted friend collect your mail if you are going away or are unable to pick up your mail. Or file a Hold Mail Request with Canada Post.

-  Pay attention to billing cycles; if credit card bills fail to arrive, contact companies immediately to ensure bills have not fraudulently been redirected.

-  File a Change of Address Notification with Canada Post and advise all your financial institutions of your change of address, before you move.

-  Contact Canada Post if you have not received any mail for an unusual period of time based on your normal delivery patterns.



CLUES THAT INDICATE YOU'RE AN IDENTITY THEFT VICTIM:

Your credit card or bank statement lists transactions you haven't authorized.

A creditor informs you that an application for credit has been received with your name and address on it, which you did not fill out.

You receive credit card statements or other bills in your name that do not belong to you.


You no longer receive legitimate credit card or bank account statements.

A collection agency informs you they are collecting for a defaulted account established in your name, but you have no knowledge of the account.



IF YOU BELIEVE YOU'RE A VICTIM OF IDENTITY THEFT:

-  Notify creditors and/or financial institutions immediately if your bank cards, credit cards or identification are lost or have been stolen.

-  File a report with your local police, and get the police case number. When the police investigation is finished, ask for a copy of the police report.



Cancel your credit cards.

-  Place a fraud alert on your credit file if you believe your credit has been compromised, by contacting the credit reporting agencies mentioned above. Ask the credit agencies to note on your credit file that you are the victim of identity fraud; tell them to contact you directly before opening any new account or granting credit under your name.

-  Contact Phonebusters, if you've been defrauded by a telemarketer. The agency collects information on telemarketing fraud and disseminates it to the appropriate enforcement agency.

-  Consider closing your bank accounts and opening new ones.

-  Advise your utilties and telephone and cable company that someone using your name could try to open new accounts fraudulently.

-  Consider getting a new driver's licence.

Avoid "credit-repair" companies, Human Resources Development Canada advises. There is usually nothing the companies can do, and some have been known to propose establishing credit under a new identity -- also fraudulent.

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