In a country where consumers owe more than $1 trillion on their credit cards,estimates of $2 billion to $3 billion in credit card fraud losses may not seem all that terrible. That comes out to just two to three one-thousandths of one percent. But it is terrible to victims of fraud. Though they may be protected financially,they are forced to endure major inconvenience. Additionally,we all pay for the costs of fraud in the form of higher prices,higher interest rates and increased inconvenience.There is no single definition of fraud,but some types of credit fraud that occur include:
- Identity theft:the unauthorized use of personal identification information to commit fraud or other crimes
- Identity assumption:long-term victimization of identification information
- Fraud spree:unauthorized charges on existing accounts
Sources of fraud
Just as there are various types of credit fraud,there are also different ways that credit thieves gather your personal information:
- Using lost or stolen credit cards
- Stealing from your mailbox
- Looking over your shoulder
- Going through your trash
- Sending unsolicited email
- False telephone solicitation
- Looking at personnel records
Discovering fraud
There are several warning signs that credit fraud may be occurring:
- Your credit report contains inquiries or information about accounts that you did not open
- Strange charges show up on billing statements
- Bills arrive from unknown or unfamiliar sources
- You receive calls from creditors or collection agencies
