Easy tips to avoid identity theft

Identity theft has become so rampant that nearly every family has been victimized. The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.

Yours truly was hit when someone created credit card accounts to the tune of about $20,000 and was even paying on one or two of them. And someone else even tried to list a stolen Honda CRV in my name on eBay, where I have a flawless history of about 10 years.

If you ever find yourself the victim of identity theft or wish to prevent it, visit this site:
http://www.ftc.gov/bcp/edu/microsites/idtheft/

Source: Federal Trade Commission

Credit card protection

"I got a call from a woman who said I need credit card loss protection insurance. I thought there was a law that limited my liability to $50 for unauthorized charges. But she said the law had changed and that now, people are liable for all unauthorized charges on their account. Is that true?"

Don't buy the pitch - and don't buy the "loss protection" insurance. Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs. If you didn't authorize a charge, don't pay it. Follow your credit card issuer's procedures for disputing charges you haven't authorized. According to the Federal Trade Commission, your liability for unauthorized charges is limited to $50.

The FTC says worthless credit card loss protection offers are popular among fraudulent promoters who are trying to exploit consumers' uncertainty. As a result, the agency is cautioning consumers to avoid doing business with callers who claim that:
- you're liable for more than $50 in unauthorized charges on your credit card account;
- you need credit card loss protection because computer hackers can access your credit card number and charge thousands of dollars to your account;
- a computer bug could make it easy for thieves to place unauthorized charges on your credit card account; and
- they're from "the security department" and want to activate the protection feature on your credit card.

The FTC advises consumers not to give out personal information - including their credit card or bank account numbers - over the phone or online unless they are familiar with the business that's asking for it. Scam artists can use your personal information to commit fraud, such as identity theft. That's where someone uses some piece of your personal information, such as your credit card account number, Social Security number, mother's maiden name, or birth date, without your knowledge or permission to commit fraud or theft. An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name.

Source: Federal Trade Commission

Buying on credit

Think about how you use your credit card for purchases. Some major credit card companies, including American Express, are looking at where shoppers are using their cards and basing business decisions based on those purchases. Some cardholders are seeing credit lines slashed or even cancelled.

American Express won’t reveal which companies or types of merchants they take into consideration for these decisions, but in a lawsuit filed by the Federal Trade Commission against a subprime lender, the financial institution penalized cardholders for shopping at eight different types of merchants, including bars, massage parlors, billiard halls, nightclubs and marriage counselors.
Source: Money magazine