Take-Aways From a Seminar About Fraud

 One of the activities that I pack into my busy schedule is volunteering as a room host for the same non-profit educational foundation, Master the Possibilities, that I am a paid instructor for. In short, I take attendance at other faculty members’ classes and get to learn a lot of interesting things for free.

I recently attended a class about fraud and below are my key take-aways:

 

Multiple Channels of Fraudulent Outreach- There are many ways that fraud victims are contacted including by phone, text, and e-mail. Also, pop-up messages on a computer with fake virus warnings that trick people into taking action that exposes personal information. The pop-ups may tell victims to call a “tech support” number and then panic them into providing remote computer access, personal identification information, or payment for fake fixes.

 

Fraud vs. Scam- The terms fraud and scam are closely related, but they aren’t exactly the same. Fraud, a broader term, refers to intentional deception used to gain something of value (like money, property, or identity) from someone else. Fraud can happen in many settings. Scam is more of an everyday term. It refers to a specific trick or scheme designed to deceive a person directly, often online, over the phone, or in person, to steal money or information. Scams are a type of fraud.

 

Skimming Devices are Passe’- Bluetooth technology is increasingly being used in place of traditional skimming devices to steal credit card information. Criminals discreetly install Bluetooth-enabled skimmers on card readers or gas pumps and retrieve data wirelessly (think laptops in a parking lot) from a 30 foot range away. Bluetooth skimming makes detection harder, allowing thieves to collect card numbers remotely and avoid frequent physical recovery of devices.

 

Tap to Pay- Tapping a credit card (i.e., contactless technology) is the safest and fastest way to pay for purchases. It uses encrypted technology that protects your credit card number. Transactions are completed in seconds, reducing time at checkout and limiting exposure to fraud. Tap-to-pay cards generate a unique, one-time code for each transaction, which helps prevent hackers from reusing stolen data. This feature makes it much more secure than swiping or inserting a chip card.

 

Keep Your Credit Card Close- Follow a personal decision rule that states “nobody ever takes my credit card out of my sight.” While most employees are honest, dishonest waiters or clerks have an opportunity to skim a card or snap a cell phone photo of card numbers and misuse your data. Three alternative payment options at restaurants are 1. pay with cash, 2. request a remote credit card payment device, or 3. follow a waiter to a cash register to oversee the transaction. Granted, the last two can be awkward but they do reduce the risk of fraud.

 

Three More Things- 1. Don’t do Facebook games or quizzes (e.g. “Find a dog that looks like you”) that require answers to questions that could also be security questions, 2. Pull your credit report at least once a year to check for errors and evidence of identity theft, and 3. Freeze (block) your credit to prevent new (fraudulent) credit from being opened in your name and thaw (unlock) your credit for 24-48 hours if you need to borrow money, open a bank account, or get a new utility service.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.