Identity Credit Cards

In today’s time, one of the most common forms of identity theft is credit card fraud. This type of fraud has had countless victims, most of them helplessly looking as their finances and credit standings are destroyed. Losses to credit card fraud can sum up to 500 Million Dollars every year.

In the advent of technology and online marketing, it is to be expected that losses due to fraud will happen. But instead of simple shoplifting on the olden days, people more adept to technology uses technology for identity theft and credit card fraud. In the online community, credit card information is required for most transactions. This range from shopping for a best selling book, membership to websites with premium content, membership to websites with adult content, to playing your favorite online game.

But identity theft and credit fraud is not limited to the internet community and technology. Some people resort to rummaging through another person’s trash to gain information on a person’s credit card, otherwise know as dumpster diving. These people will go through you trash looking for credit card bills or other documents with your card information.

Another source of credit card information is through credit card applications. Let’s look at the case of Gerald, an employee in a fortune 500 company in 3rd world Asian country. He earns between 500 to 700 US Dollars in a month. He religiously maintains two credit cards from bank “M”. He makes sure he pays these cards to ensure that he will have good credit standing when he applies for a car or housing loan. On one of his commutes from work, he was approached by an agent from Bank “C” asking him if he’d be interested in applying for a credit card from their bank. Since he has been thinking of getting another card which he can use for emergencies, he gladly filled out the form and dropped it in the drop bank in Bank C’s booth. He then faxed all the required documents the next day.

Gerald went through the usual credit investigation but did not receive any feedback. Since the card did not arrive, he assumed his application was denied. However after 8 months, he received a call from bank C’s collection department informing him that he has an outstanding balance of 1200 Dollars. This confused him as he has never received the card. He reported this to Bank C but Bank C did not believe him and did not bother to investigate and only insisted that he pay his outstanding balance. Gerald, not wanting to pay 1200 dollars he did not spend and knowing that his credit standing has been ruined decided to stop paying Bank M as well.

Bank C, not being able to provide all the necessary investigation has lost 1200 dollars, a potential good paying customer and their reputation among Gerald’s peers. They have also caused bank M to lose whatever amount Gerald owes them. All these for one person’s gain through identity theft.

Tina L. Douglas is a well established author on the topic of identity theft protection.