CreditCards.com.au - Australian Credit Cards Online

26 September 2008

Credit cards at often at risk of embezzlement. In fact, it is common to hear reports of people who have suffered the trials of identity theft. Identity theft is defined by the Australian government as an individual falsely representing him/herself as either another person or as a fictitious person to an organisation for some benefit.

Credit cards are frequently the target of identity theft because people tend to be too trusting. Many people use their credit cards on a daily basis, including paying for items over the phone. Many fast food joints allow payment over the phone. This usually requires the cardholder giving their card number, name, expiry date and your card verification code (aka CVC) over the phone. You are giving your credit card details to a stranger. This unseen person now has all the details of your credit card to go on an online shopping spree. And you won't know it until your credit card statement arrives.

Some credit card scammers have a variety of tricks to obtain your information. These include:

• Computer infections - Trojans, viruses, worms.
• Fake websites.
• Hacking into your computer.
• Stealing - purses and wallets, from your letterbox, rubbish at ATMs, and places of employment or at clubs where your information may be stored.
• Email and phone scams.

This is one example of a phone scam. In this instance, the scammer already has your credit card number. They don't have your CVC number. This is the information that they are after.

How this scam works:

1. The scammer contacts you, claiming they are from the Security and Fraud department of a major credit card company, such as VISA or MasterCard.
2. They will quote you believable details such as their name and a badge number.
3. They will claim that there have been some unusual purchases charged to your account, probably in other states, or even overseas.
4. After you tell them that these purchases haven't been made, the scammer will say that a fraud investigation will promptly be opened on your credit card accounts.
5. The scammer will state your address and ask you to confirm it.
6. The scammer will ask you to confirm that you are in possession of your credit cards. They will ask you to read the digits on the back of the credit card. This is your CVC number.
7. The scammer will claim this is correct and thank you for your time, adding that if you have further questions, please contact the credit card company's fraud department.

It is important to do everything in your power to protect your credit cards and your identity. These tips can help you avoid losing control of your credit cards and becoming a victim of credit card fraud.

• Install reputable security software on your computer and make sure to keep it updated.
• Use hard to guess passwords and change them regularly.
• Ignore spam - banks will never send out emails asking for your financial information.
• Use secure websites.
• Avoid keeping personal information (such as credit card details) on your computer.
• Check your bank statements and report any discrepancies.
• Secure your letterbox.
• Destroy personal information letters before placing them in the bin.

Compare credit cards and remember to keep them safe from scammers.

Back to News Index | Back to Home