Credit Card Identity Theft
By Rick Hazeltine
Staff Editorial Writer
Credit card identity theft is probably the most common form of identity theft because the cards are so easy to use in our society.
We use our credit card all the time without a clerk checking for matching identification. We don't give a second thought about the convenience of reading our number over the phone to a complete stranger. And we think nothing of a waiter taking our card when we pay the bill. Then there's the Internet, where all you need is a credit card and a mailing address to set up an account at any number of businesses.
Consumers have grown careless with credit cards because they aren't usually financially responsible for fraudulent charges. Of course, we pay for these in other ways, such as higher interest rates. And with credit card identity theft, the debt can be even higher.
With credit card identity theft, getting the credit card company to remove the fraudulent charges is the easy part. The identity thief will use your card to get loans, more credit cards, cell phones. The snowball effect can have you chasing your bad credit for years.
Here are some common ways in which people become victims of credit card identity theft:
- Shoulder surfing. Thieves are very adept at blending. Victims will not likely notice them adroitly looking over their shoulder while using a credit card. The shoulder surfer can quickly memorize the numbers on your card. They may also listen in as you read your credit card number over the phone to a hotel or rental car company.
- Pre-approved credit cards. This has become a major source of credit card identity theft. ID thieves stake out easily accessible mailboxes or will search through trash to look for these offers that were discarded by the recipient. The identity thief will then try to activate the card in your name. Once they do, they can open other credit card accounts, also in your name.
- Dumpster diving. Identity thieves will crawl through trashcans, looking for documents with personal information. This form of credit card identity theft occurs when thieves find discarded credit card statements or bank statements. They can use this information to get new credit cards, all in the victim's name.
- The relative anonymity of the Internet has made it the mother lode of credit card identity theft. An email with credit card information can be intercepted if sent from an unsecured computer. Bogus emails requesting verification of your personal information, called phishing, is another common tactic.
- Skimming. This is one of the fastest growing areas of credit card identity theft. This is where thieves use a device that records the information in your credit card's magnetic strip. They then can use this information to create new cards with your number. Skimmers have been used on ATM machines and by waiters or store clerks who swipe a card without the customer realizing it.
