Your Financial Future
Identity theft is a major problem both in Pennsylvania and across the United States. In 2023, the Federal Trade Commission reported 1.4 million identity theft reports out of 5.7 million total fraud cases.
These crimes have evolved over the years. In the early days, criminals would try to gather your personal information by raiding your garbage can or stealing mail, looking for a Social Security number, driver’s license or other personal data. With that information, they attempt to open credit cards or access bank accounts.
Today, a large portion of fraud is committed online. Fraudsters often send phishing emails trying to get a person to provide sensitive information. These emails may thank a person for a purchase that he did not make or inform them that they won a prize. Often, they try to look official, often including a logo that looks very similar to a legitimate one.
Often, deceptors seek a response, claiming that this will prevent you from being billed for a fake purchase. They may ask for verification of personal information or account numbers. While they appear to be legit, they are stealing personal information. One way to determine whether an email is fraudulent is by looking at the email address. Oftentimes, the address is linked to a Gmail account. Major companies and organizations have corporate accounts.
Fake websites may try to encourage consumers to order a product, accept the payment, and never send the goods. To entice buyers, they may offer an unbelievably low price. Sometimes when the price is so low, stolen goods might be involved.
Another way criminals may use your personal information is to apply for government or insurance benefits. Stay alert, and look for clues that point to illegitimacy.
Just this week, skimming devices were discovered at several grocery store checkouts. These devices read the magnetic strips on credit and debit cards. Look for signs such as loose attachments or other things that do not appear to be normal.
There are many other kinds of online scams, such as romance scams, undertaken when two people begin an online relationship. After making contact, one party suddenly has a financial emergency and asks the other for help. Grandparent scams happen when someone impersonating a family member calls and asks for money to help overcome a problem. There are also scams in which the fraudster claims to be from the Internal Revenue Service or police department and threatens arrest if money is not sent immediately.
The best way to be protected from all of these crimes is to use common sense. Government entities do not use email to communicate, and all follow due process, rather than unexpectedly threatening action. Be careful when clicking on links or websites. If you know you did not make a purchase, do not click the link. Use credit cards for online purchases because it offers the option to dispute charges.
Check credit reports regularly to ensure no unauthorized accounts have been opened. Beware of any contests that require payments before awarding a prize.
When you are not sure what to do, talk to a family member or trusted friend for advice before acting. Be careful and protect your financial assets.