Protecting Your Personal Information

[ 2 ] October 6, 2014 |

Did you know that any individual, regardless of economic status, gender, race, age, or educational background can be the target of financial abuse? Recently an IAACU member was targeted through a telephone scam. The victim was asked to buy prepaid debit cards and then provide the scam artist with the identifying card information that was later depleted. People of all ages are being targeted by scammers at an increasingly alarming rate.   These are some of the most common ways crooks and con artists will try to steal your personal financial information:

Phishing: This occurs when online scammers send you e-mails disguised as legitimate organizations in hopes that you will provide your personal information. The e-mail may warn you that access to your account will be terminated if you don’t confirm your bank account number. Other scam e-mails offer you big riches if you provide your account information, while others will ask you to reconfirm your payment details for an order you may (or may not have) placed. Be very suspicious of these e-mails, as phishing crooks are clever and will often use the exact logos of big-name companies with which you may do business, such as a major retailer or financial institution. Never click through a link on any e-mail unless you personally know the sender.

IRS refund: Another popular phishing scheme has to do with the IRS. You receive an e-mail telling you that the IRS has a refund for you. All you have to do is click through the e-mail and provide your bank account information. The IRS reminds taxpayers that the only way it will contact you is by a letter sent to your home address.

Foreign lottery scam: You may receive an e-mail, letter or check telling you that you’ve won a foreign lottery-even if you didn’t buy a ticket. All you have to do to collect the money is to provide your bank account number or deposit the check, so that the funds can be deposited. Of course, this is a scam, and by providing information or depositing the check, you are giving access to sensitive financial information.

Hot tips from cold calls: While phony telemarketing offers have become less of a threat with the government’s Do Not Call list, you may still get cold-called. If someone calls you with a hot investing tip and you don’t know who it is, it’s likely a scam.

Calls to “confirm” your personal information: Remember, your bank will never call and ask you for your full account numbers. And you should be wary of anyone calling to ask you to confirm your PIN number or the three- or four-digit security code on the front or back of your credit card, unless you’re sure it’s a trusted source. When in doubt…hang up!

ID Theft 

Medical identity theft: Be careful about the people with whom you share your medical history. When you go to the doctor, keep an eye out that records are kept in a secure area. Don’t provide your Social Security number unless there is a good reason to do so. Ask your insurance company to give you a new card that doesn’t have your Social Security number on it.

Fake jury duty: Someone calls to tell you that you missed jury duty and he or she needs to confirm your personal information. Because you think it is the court calling, you may be more likely to confirm your information and provide additional information.

Child identity theft: One of the fastest growing segments of identity theft is the stealing of a child’s Social Security number, name and other identifying information. Often, it is a relative or a close friend of the child’s parents who steals the information to set up new credit or bank accounts. You may not know there is a problem until you try to get your child a driver’s license, open up a checking account for him or her, or apply for a student loan. You can pull a child’s credit history once he or she turns 13, and you should do that annually once your kids are teenagers.

What You Can Do to Protect Yourself and Avoid Identity Theft

The best way to avoid getting ripped off is to make sure you’re always in control of your money and personal financial information. Here are some things you can do to protect yourself:

Phone Calls:

  • Ask for a call-back number. If someone calls and says he or she is from your bank, credit card company, doctor’s office or another place with which you do business, tell the person you’re too busy to talk and ask for a phone number to call him or her back. If the individual says, “I’ll call you back at a more convenient time,” then hangs up, you can then call the doctor’s office, bank or credit card company and ask if they are trying to reach you for any reason.
  • Report the scam to the company in question. If it turns out that no one at the bank, credit card company or doctor’s office called you, you’ll know someone tried to pull a fast one. Ask for the department that monitors fraud and tell them what happened.
  • Hang up. The easiest thing to do is to decline to give any personal information over the telephone to anyone. If someone hits you up for a contribution to a charity, ask them to mail you information instead.

Computer Usage: Create strong passwords and keep them safe! Passwords can be difficult to remember, especially if you have different passwords for different sites. But it is important to create “strong” passwords and not just use your birth date, your address or another easy password that a con artist can guess.

Bill Payment: Paying bills electronically will eliminate some of the risk. If you pay your bills with a check through an unsecured mailbox, your personal financial information could be stolen or compromised before it gets to the intended recipient. If you pay your bills online, you could reduce the number of opportunities for your personal information to disappear. Paying your bills online also saves you time and the cost of buying stamps. Also, make sure the web site is a secure, encrypted environment. To make sure that a web site is secure, look for a closed lock symbol in the bottom right of the screen, which means the site should be encrypted. Web addresses that begin with “https” also indicate secure sites, and if you click on the lock symbol, it should display the same “https” address.

Lastly, scammers are also searching through mailboxes, garbage, and anything else that might provide personal information. By having more of your bills and other sensitive information such as account statements sent to you electronically, you reduce the likelihood that you’ll throw something away that contains your personal information. Dispose of your personal information properly. If your neighborhood permits – burn old bills, receipts, etc. Another alternative would be to buy a personal paper shredder or check into a shredding service. IAA Credit Union offers free shred dates twice a year.

Credit History: It’s also good idea to check your credit history regularly. Be aware of credit score, by viewing your own credit scores and reports, you can make sure that everything on it is accurate and legitimate. Oftentimes, discrepancies only become known when you are looking to take out a loan. Lower credit scores could mean you are charged a higher rate to borrow money.

Quick Tips:

  • If you feel you’re being scammed by phone, hang-up!
  • Go to the authorities if you feel you are being scammed – they are there for your protection & don’t feel ashamed for doing so.
  • Protect your information and don’t give it out if you are in doubt.
  • Keep your passwords safe.
  • Stay away from unsecure websites and invest in good antivirus software. Free software won’t keep you safe.

Lastly, if you feel you have been scammed or have questions to discuss, feel free to stop in IAA Credit Union. One of our staff members would be happy to help!

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Category: Technology/Security

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  1. Greg Maurer says:

    Need your advice on money fraud protection. We heard of “RFID” sleeves for credit cards, what are they and are they worth having? Also, I have been told not to give my debit/credit card to a waiter, to always keep it in sight. what is your advice? Is it safer to use a credit card than a debit card? When using a debit card is it safer to run it as a credit, or to use the PIN number?

    Finally, I have been hit a few times by someone getting access to my debit card info and making unauthorized purchases, you have covered the loss each time, but is there anything I should know to prevent my being responsible for any future fraudulent purchases. Your responses would be a good info for sharing with members. Thanks.

    • Nick Sosnowski says:

      Great questions Greg! We have limited space so I will try to keep my answers short, but if you have more questions just give us a call!

      RFID sleeves protect cards that emit a radio frequency to authenticate transactions. If you have a card that that you just wave by the machine to authenticate a transaction, getting one of those sleeves is not a bad idea. Most cards, however, are authenticated using a magnetic stripe or a chip imbedded in the card which do not emit any sort of frequency that you would need to block. IAA Credit Union cards are currently magnetic stripe cards and a RFID sleeve is not needed.

      Letting your credit or debit card out of your sight when giving it to a waiter does expose you to some potential theft of the data. In most cases, however, there is not much you can do to mitigate the risk and the risk is relatively low. If you have the opportunity to keep the card in your possession or not let it out of your sight I would take it, but sometimes there is not a way around it.

      I generally advocate using credit cards over debit cards if you can manage your finances in such a way that you are not carrying a balance on the credit card. I also advocate running transactions as ‘Credit’ on your debit card as opposed to entering in your PIN. Running transactions on a ‘Credit’ network (Visa, MasterCard, Discover, etc…) gives you some additional rights for disputes and charge-backs that you don’t get on a PIN based network.

      Unfortunately, I don’t have any new suggestions for how to better protect your card. Keeping your card in eyesight like you mentioned is a good suggestion, but another is not leaving it accessible in your household. We see a lot of cases of “friendly” fraud where a son, daughter, other family member, or friend uses the card in a fraudulent manner. The other suggestions are just common sense. Don’t write your PIN number down (or on the card). Check your statements and account history to watch for unauthorized activity. Large merchant compromises have become commonplace, however, and until technology catches up there is not much that can be done to protect your card from those. With most Credit/Debit cards you have zero liability for fraudulent purchases, so there is no need to lose any sleep. As long as you are careful with your cards I think you are doing all you can.

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