7 Ways to Avoid Fraud
Posted by Gail | Filed under Take Control
Ever had a sense of participating in the shared consciousness. This is how I refer to the fact that sometimes I get a slew of letters about one particular topic. It’s sometimes what drives me to do a blog with a specific focus. A while back I got a slew of letters asking about the Save-10%-Rule. Most recently, I’ve had a barrage of request from people who are very concerned about fraud. If this has been on your mind, here are some I do.
1. Shred ‘em. I periodically go through my paperwork and files and get rid of anything I no longer need. I don’t just dump ‘em. I shred ‘em. This applies to financial statements, invoices, anything with personal information that someone could use to hurt me. Since “dumpster-diving” has become a favourite way for fraudsters to find information they can use to apply for loans or credit cards in your someone else’s name, I bought myself a cross-shredder and make my financial stuff into confetti.
2. Never write PINs? down. Yeah, I’m old, but I can still commit a few numbers to memory. And I wouldn’t dream of sharing my PIN with anyone. NOT ANYONE. When choosing a PIN, don’t make it too obvious: a phone number, address, birth date. And periodically I change my PINs. If you’re having trouble remembering your multitude of PINs and passwords, take a page from my girlfriend: she carries a telephone book around with her and has her PINs and passwords concealed amongst all the other names and numbers.
3. Never give out info on the phone. I’ve had people call me to “verify” stuff, and ask me for the information. I point out that I’m happy to verify what they already know, but I’m not telling them squat. Your bank will never call you at home requesting personal information. If someone does, rest assured that it is a scam and should be reported to both your bank and the Anit-Fraud Centre at 1-888-495-8501 or info@phonebusters.com.
4. Don’t respond to emails requesting personal information. I just hit delete. I know my bank would never send an e-mail requesting log-in information or for me to click on a link to your bank’s log-in screen to enter information.
5. Don’t be a sucker. Have you ever got one of those emails promising you thousands of dollars if you take advantage of a new business opportunity, fabulous investment with amazing returns, or for your help is moving money from another country? Just how gullible are you? If you’re a sucker, you deserve to lose your money. Sounds harsh. Harsher than losing your money? Really?
6. Beware the work-from-home scam. With people looking for ways to make more money, the temptation to send money to someone with a promise of getting paid work you can do at home is sometimes too much to resist. One of the most successful lures you into becoming a “representative” or “collection agent” for a company. The fraudsters have you collect and deposit cheques into your bank account and then wire the cash to Head Office while keeping your commission for yourself. Sadly, the cheques turn out to be counterfeit and the bank comes after you for the cash because you are responsible for any deposits to your bank account.
7. Be careful when you shop online. I choose to use reputable retailers. And I have a credit card with a very low balance that I use only for online purchases. I change this card every year or so. A credit card can actually help to protect you since if you have a dispute with a seller, you can ask your credit card company for a “chargeback” – read “don’t pay this seller” — if your purchase was not as advertised.
May 27, 2010 at 6:49 am
We were called by some fraudsters asking us to verify personal information. The line I used was “I’m sorry but I don’t answer questions unless I myself initiated the phone call. Goodbye.” and I hung up.
May 27, 2010 at 8:15 am
I won’t give personal information to door to door people either, I don’t care what kind of id they have. One salesperson assured me that all information was strictly confidential – while filling me in on my neighbors down the street. The salespeople get very upset when I inform them I won’t give out personal information, it’s crazy!
May 27, 2010 at 8:21 am
Re #3: I had a huge fight with my bank about this exact issue. They thought my ATM card had been compromised (it hadn’t) and called me at home with a prerecorded message to “verify some information”. I checked my account online, saw no problems and no warnings, and didn’t call the bank. They cancelled my card! So far I have complained enough to the bank that they have given me $150 as compensation for my time & distress, but they refuse to admit that maybe their notification system should be fixed.
May 27, 2010 at 8:54 am
When people say “don’t give out your pin” they mean- to people who don’t need it! I work for a call centre where people call in and then we ask for a pin, (not a financial institution) and often people will say, ” I can’t give that to you, it’s confidential!”.
I like your tips on concealing pin’s in with other phone numbers!
May 27, 2010 at 9:05 am
Another scam that happened to me the other night was during the evening my hubby and I get a knock on the door and its 2 men from an Energy company wanting to take a look at our bills to see if they can confirm the information??? Really you are gonna show up at my door just to confirm info?? Yeah I dont believe you!
May 27, 2010 at 9:08 am
I’ve been concerned about this exact thing lately. I am careful about all the things listed, but I am worried about unsolicited credit card applications being sent to me. I moved a few months ago and these applications are still being sent to my old adress. One such application only needed my date of birth, income and signature to get the card. It worries me that someone could possibly open a card in my name. Do any of you know how or if it’s possible to stop these applications??
May 27, 2010 at 9:33 am
If it sounds too good to be true, it definitely is.
We’re in control, so always ask questions when people are contacting us for info. Our information is everywhere, try googling your name, etc, I’m sure there will be a page on the net that comes up.
Do you ever ask why a grocery teller at Walmart needs your postal code or sometimes a phone number? Is it really for a survey that they are conducting?
Think twice, three or even four times before you give out your info.
May 27, 2010 at 9:37 am
Dawn,
Unfortunately, the two major credit bureaus have the right to sell your information to companies that want to offer you a credit card. Fortunately, the credit bureaus must also provide a way for consumers to have their names excluded from pre-approval lists.
You can write to the two major credit bureaus individually to request that your name not be included on their pre-screened lists. Send a letter indicating your intention to opt out, including your phone number, name, postal code, mailing address, and Social Insurance Number to each bureau. If you’ve moved in the past six months, you should include your old address as well.
May 27, 2010 at 9:58 am
credit card purchases over the internet are sooo sketchy! The website can advertise that they are from canada, when really they are untraceable in China…Make sure if you are buying online that you have actually called the phone number associated with the website. Good luck getting money back from your credit card company from online purchases, you could be out of luck.
May 27, 2010 at 10:10 am
@ Chloe – you do realize your bank is trying to protect you, right
Even though your card may not have been compromised per se, you could have shopped at a store 6 months ago where lately a lot of cards have been skimmed (numbers and pins illegally recorded) for instance or the store had their database hacked. It`s difficult to know the `safe or not safe`cut-off point and banks err on the side of caution. Personally I think you should be more appreciative; yes it`s a pain but nothing compared to actually getting hacked.
May 27, 2010 at 10:19 am
@ Chloe. Although I agree with Geoff, I totally understand what you mean. We got the same message from RBC a couple months back. It gave us a 1-800 number to call. I told my husband not to call the number they gave us, but to call the RBC number WE know about, the one on the back of the card. It was indeed a ligitimate call but man did it sound sketchy! It was also from a store that we’ve never been to. But better be safe than sorry!
May 27, 2010 at 10:26 am
Chloe and others, yes, FI’s are told to cancel cards that “may” be comprimised because the people stealing the info are using cards months down the road, so better to be safe than sorry. At little inconvenience for you may save FI’s literally thousands from fraud. Who do you think pays for fraud in the end? Insurance-ha! More like consumers. And they can’t actually tell you where the fraud occured if there is an open investigation on it, so that fraudsters can ‘t be tipped off that the cops are closing in. Lord knows how fast word spread when you’re told something, I’d be emailing everyone in my contact list.
May 27, 2010 at 10:36 am
Sarah-these companies are trying to get you to sign up for their energy contracts (they’re not from the company you’re currently with). They want to see your current bills so they can tell you how much you’ll “save”. I got utterly harassed by these people when I lived in Thunder Bay (I’m talking 2-3 visits a week!)
May 27, 2010 at 10:57 am
@Maggie- No one needs your PIN number, especially not a call centre. A PIN is for only the owner of the card. It’s usually not even a good idea to let a relative know what it is.
May 27, 2010 at 10:59 am
A person doesn’t need to carry cards & debit cards daily everytime you leave the house. If you shop, whether for gas, grocery or other EVERY SINGLE DAY you’ve gotta manage your time better!!
Leave cards at home. Shop one day a week and do all shopping that lone day. Then you don’t have to track your spending on the other 6 days & worry about fraud.
Don’t answer the door! If I’m not expecting a friend or family at my door I refuse to answer it. Too bad for whoever is on the other side. If they need us, they should be close enough to us relationship-wise that they have our cell # to call & say ‘Hey, I’m at your door’.
It’s sad we live in a world where you absolutely can’t trust a stranger! But that’s they way it is no. Don’t be paranoid – just use some sense, safety for yourself & family, and pay attention at all times.
: )
May 27, 2010 at 11:15 am
How timely. I was reading about fraud awareness last night on another money website. Here is a link to some financially related quizzes and there’s one titled “How vulnerable are you to fraud?”
http://www.getsmarteraboutmoney.ca/tools-and-calculators/quizzes/default.aspx
One time when I was Christmas shopping my CC company put a hold on my card because of all the unusual activity on it. I was able to clear it all up when I called the CC company because all the charges were legitimately mine. It was reassuring to see how vigilant the company was being.
@ Sarah and psychsarah–I’ve had those energy guys come to my apartment too. They came quite often! I never showed them my energy bill. My husband looked them up on the internet and found that LOTS of people had complained about them and their contracts that locked you in and didn’t give you any “savings” at all.
Everyone’s got to be aware!
May 27, 2010 at 11:38 am
[...] This post was mentioned on Twitter by Ethical Consumer, Before You Invest. Before You Invest said: 7 ways to avoid fraud – from Gail Vaz-Oxlade http://ht.ly/1QySh [...]
May 27, 2010 at 11:43 am
When I get phone calls from either a bank or credit card I never call back on the number they gave me in the message I use the phone number on the bakc of my card. These phone calls have actually saved me heart burn. I got a fraud call from my bank for $500 worth of purchase and as a result of my call back the credit for the values were added to my account at the same time as the fraudulant purchase (which was completely removed from my account after there was an investigation). Funny thing happened once I had just finished pumping gas in California and I got a fraud call from the gas card company asking if I purchased $100 worth of gas in Massechusetts an hour ago.
May 27, 2010 at 12:39 pm
It’s good to be cautious, but I think sometimes people get confused. I had more than one person call our hotel to book a room, then refuse to give me their cc# to hold it! No, do NOT give our your cc info if someone calls you, but if you’re the one calling to a business to buy something–you kind of need to.
May 27, 2010 at 12:42 pm
@Tyrone, while I believe stores asking for postal codes are generally using the information for marketing purposes, I still think it’s none of their business. I usually either don’t tell them, or give them a different code ie not mine.
May 27, 2010 at 12:45 pm
I have a dear friends that had her PINs skimmed (she still doesn’t know how or where) and they cleaned out her checking account. That was an expensive and time consuming hassle when she had to try to PROVE that she didn’t clean out her own account! And she had to depend on the charity of friends to pay her bills in the meantime.
I am leary of people around me when I use my PIN, and anxious about PIN pads that don’t match the debit equipment on the counter. I always ask why it doesn’t match (better to look paranoid then lose my money). I feel better when they are bolted to the counter or handed to me from behind the register.
That big chain that got hacked a while back made me nervous, as I was a regular customer there, but thankfully nothing came of it for me or anyone I know.
It has to be the HEIGHT of rudeness to leave an automated message for any service-related call. How rude — really! Generally, I get so upset that I didn’t even warrant a live person, that the the message doesn’t get heard at all. Who know how many “important” and valid messages I have missed thanks to that!
My favourite one is the one about how “according to their records” I am paying too much interest. RIDICULOUS!!! I don’t carry a balance! How can ZERO DOLLARS be too much?!
May 27, 2010 at 1:03 pm
@Tyrone and AnnieA – I know it’s a bit off topic but I’ve always been very curious as to why certain stores will ask for your address and phone number, maybe both, when returning an item especially since they didn’t ask for the information when I bought it.
Good post today, Gail. I invested in a crosscut shredder a few years back and shred anything that carrys addresses, acount numbers, credit card numbers, store receipts that show my debit card number, which could possibly be traced back to me.
May 27, 2010 at 1:24 pm
Dean-I get so peeved when they want so much info just to return an item. I’ve asked, and they say it’s so they can track people who return “too much”. Not sure what that means… Most of the time, if I kick up any (polite) fuss, the clerk says “don’t worry about it”. If they insist, I put my work address/phone number. It’s online anyway, unlike my home phone number that I pay to have unlisted.
Kathleen-you’re so right about those companies. I was confused when it started happening, because I had never paid gas bills before (always lived in apts where the utilities were included before this) and stupidly showed one of them my bill initially. Then I figured them out and refused to open my door to them. The rates they were proposing would have cost a TON more money that the normal gas company rates over time. I’m so glad I didn’t fall for that one.
I’m kind of liking the idea raised above of not opening the door unless I’m expecting someone. Inevitably it’s someone selling something or wanting money for charity (which I don’t give because sadly, I don’t trust strangers with my info-when I donate, I’ll do it in a secure way, thankyouverymuch!)…luckily I have a big black dog that looks scary (he really isn’t, but I’m not going to tell some stranger at my door that-he’s my built in security system!)
May 27, 2010 at 1:44 pm
@ Dawn: I had exactly the same problem/concerns with the pre-approved credit card forms. You don’t need to write to anyone … you simply need to call the 1-800 number of the bank that is sending you such forms. I did so with CIBC and they openly admitted that it will take up to 2 months to process the cancellation of all such pre-approvals, but I thought that 2 months was better than nothing. And I don’t think that it actually took 2 months, because I haven’t received a single pre-approved credit card form since making that one simple call (and that was 4 months ago).
May 27, 2010 at 2:54 pm
About the postal code thing… the reason they take those is so they know where their customers are from so they advertise in the right areas. I don’t know if the phone number is to accomplish the same goal?
May 27, 2010 at 3:52 pm
@ All those who don’t want to supply info on returns: (easier than typing all the names) – There are several ways to steal from a store, but the most consistent is internal theft, or shoplifting. Generally, in order for it to be profitable, they then return the item to get a credit / refund. So this is the store’s way of combating that. It is also because if an item is defective or opened and then unsellable, they have to send information back to the manufacturer in order to receive credit for it.
I used to supervise a customer service at Cdn Tire back in the day.
Also, if you ever have trouble returning something that you opened but a) didn’t like, b) didn’t work as you thought it would — tell the clerk it works intermittently. Usually, as long as it’s within 30days, you’ll get your money back.
May 27, 2010 at 3:53 pm
Hmmm, did I just post 1 way to perpetrate a fraud? LOL
May 27, 2010 at 4:12 pm
A co-worker of my husband had not only his PIN skimmed, but his whole identity stolen! It was freaky that someone we actually knew had this happen to them; it scared us straight about alot of stuff! We changed PIN #’s, got a handy-dandy shreddder, and an unlisted phone #. Even better, we don’t get the door-to-door Energy people showing up because we bought a condo in a building with 24 hr. security.
May 27, 2010 at 5:31 pm
When you make a return, who says your name/info has to be real? I’ve returned books and other items and when they ask for personal info I just make it up on the spot. Never had a problem. It’s just a method they use to discourage “repeat offenders.”
May 27, 2010 at 8:08 pm
I have a wood burning fireplace in my house so I burn any documents that have personal information.. same effect as a shredder lol
I don’t care if a store asks for my postal code… but i don’t like when they want my phone number, like I want to encourage telemarketers calling my house.
I only buy online from trusted retailers, but prefer it when they have the PayPal option.
Side note.. anyone watch Wedding SOS at 6:30 tonight? it had Racheal & Daniella on it that were on Till Debt while back… I find it odd when couples are on more then one tv show lol
May 28, 2010 at 2:04 am
[...] V-O has some good points in her article 7 Ways to Avoid Fraud and these are important things to remember. Never put important documents out in the paper [...]
May 28, 2010 at 6:52 am
@ Mimi & Geoff
I agree that the bank was trying to protect me. I just think that they should have called me personally or emailed or even written, when they cancelled my card. The bank card is really a contract between you and the bank, and now I have my doubts about whether or not I can access my money when I need it. I probably would have switched banks but my employer uses this one.
The completely ridiculous thing is that they cancelled my card because I used it in a hospital emergency room bank machine late on a Sunday night. Apparently I don’t use this particular hospital ER bank machine very often, so they weren’t sure it was me. Really? I only go to the ER in case of emergency? REALLY?
I could go on and on with more boring details as to why I am so frustrated with this event, and the response I received to my letter of complaint. Next time I get a strange phone call from my “bank”, I will call the number Gail gave.
May 30, 2010 at 8:36 am
@ Chloe
I do work for a bank and we do use those types of things to notify you to contact your branch – either by phone or in person. The message does not ask you for info – it just states you need to contact them. All they would do is get you to do exactly what you did – verify everything, but sometimes they replace your bankcard for good measure to make sure your card was not copied and being used at a later date. A lot of times this scammers with the bankcards & PINs don’t use the cards until months after they copy them… so once banks are notified that a card has been compromised they are generally made aware of all clients who could potentially be at a loss and it’s up to us at the bank to reach our clients and get them to come in and get new cards. It’s completely for your protection.
Hope that makes more sense for you.