- You get a call from "your credit card company"
- They are warning that your account has been "flagged" by their fraud dept.
- They know your name
- They know your address
- They even know your account number
- They want to send you money to reimburse you for those "fraudulent charges"
- They just need to verify that you still have your card in hand
- So you give them the 3 security digits on the back of the card
That is what the whole call is about. They just wanted those three numbers. They already had the other information, likely purchased from some data mining source. But they didn't have the security digits to easily make online purchases. Until now.
- You are not worried about your account because your "Credit Card Company" is already on the case.
- You don't check for fraudulent charges
- You don't call to make a claim
- Mr. Identity Thief has several days to go on his shopping spree
Many credit card companies are quick to resolve Identity Theft claims. They don't want you to stop using your card, after all. However, every time a thief gets away with his crime he is emboldened to do it again. And to brag to all his other thieving friends how easy it is.
Even though you may not pay for those charges out right, we all pay for it. The money comes from somewhere, usually in the form of extra fees hidden here or there.
If you choose to use credit cards, it is key that you teach your kids some of these basic safety measures:
- Never give out information to people who call you
- Always go to a statement to get a phone number and call them back
- Keep cards and statements secure - at home, stores, restaurants
- Check statements regularly for fraudulent charges
- Try to use other reputable sites, like Pay Pal, when buying from an online source
You don't have to be afraid of online shopping, but you do have to be careful. Your example will go a long way to teaching your kids about money.