Identity theft and phone scams: what you need to know to prevent identity theft and avoid becoming a victim of identity fraud.
How Do Identity Thieves Use the Phone for Identity Theft Scams?
Identity theft is a growing problem, and consumers are increasingly aware of online identity fraud scams. But identity thieves are still working phone scams to steal credit card information, obtain Social Security numbers and other private data which they use to commit identity fraud.
Here are some common phone scams:
*Someone calls you--unsolicited--and claims to be from a bank, credit card company or lending institution wanting to "verify your account". They will often request that you "confirm" your account number, your Social Security number--perhaps your date of birth, address, phone number and even your mother's maiden name
*A caller claims to be phoning from a credit card company and wants to offer you a special rate--and if you sign-up RIGHT NOW, over the phone, you'll be entitled to a free gift, such as a gift card or credit on the new card. They will want you to provide all of your private data: from SSN, to date of birth, address, phone, mother's maiden name, employer and salary information and so on.
*You receive a call from someone claiming to be from the local courthouse saying that you failed to show for jury duty and purporting to inform you that there is a warrant out for your arrest. If you agree to pay a small fine--by providing your credit card information over the phone--they'll "fix the problem" for you.
*When you pick up the phone the "representative" claims to be calling from your bank and says that they are concerned about possible fraud with your account. They claim that to ensure that they are speaking with the account owner they need you to verify information--such as Social Security Number, account number and even the three digit security code on the back of your card.
What do all these phone scams have in common? Those are identity thieves running phone scams on the other end of the line. Legitimate businesses will not call you, unsolicited, to ask for sensitive information such as your Social Security number.
What should you to do avoid becoming a victim of identity theft? First, you should ask as many questions as possible: what is the person's name, verify the name of the institution they claim to be calling from, ask them for details on the "special offer" or "possible fraud"--then ask them for a phone number where YOU can phone THEM back.
Once you have the details, phone the FBI and report the scam to the Federal Trade Commission (FTC). Provide them with as many details on the phone scam as possible--including any number that may have shown up on your caller ID.
Remember: identity theft is the fastest-growing crime in America, and phone scams are a simple, low-tech way for identity thieves to dupe you into providing them sensitive personal information—enabling them to commit fraud in your name.
