New identity fraud scheme identified

In a recent example of how card fraud can impact your daily life, a husband with his wife and son were just about to pay for lunch when their debit card was declined. The husband arrived home and logged onto his online bank account to find he was overdrawn by $400.

Over a period of 24 hours 40 transactions were made by his debit card. How scary is this? Worse was to follow – 2 days later there were two packages on his doorstep and on the following day he got a further seven packages!

A close inspection found that all the packages were from different companies, ranging from health and beauty products to diet pills to coffee. In total it added up to $335, mostly in shipping fees.

There isn’t proof but ID Theft Protect believes that the individual (or individuals) actually gained financially from this scheme. The fraudster doesn’t really care whether they get the package; all they want is the credit for sending somebody to actually sign up.

In the US, the Better Business Bureau (BBB) indicates they haven’t seen this type of scheme before. What is very scary is that all the fraudster needs is a persons name, address and card number to pull this off!

Here are some simple cost effective TIPS on protecting yourself from this type of scheme:

TIP: Ask your bank for password account limit protection on your accounts. You can set the limit to $200 (£100) for example. You will need to check with your bank on whether they offer this service. (US and UK)

TIP: Keep a low balance on your spending account. Always use a separate account for paying bills – and never use the debit card for your bills account!

TIP: Never use a debit card online or for purchasing train tickets or gasoline (petrol)

TIP: If you have a credit card we suggest you use that for all online and offline (shopping) purchases! You are not able to get a credit card, so why not consider a prepaid card?

TIP: Register for online credit monitoring – click here to find out more.

Safe surfing folks!

Source: ID Theft Protect

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