Fraud Protection
UNDERSTANDING FRAUD AND IDENTITY THEFT
Card fraud strikes millions of times every year and is one of the fastest growing white–collar crimes. The American Express Network is committed to helping you reduce your chances of becoming a victim and providing access to resources that can help you recover if you do.
Fraud information
While theft is the most obvious form of fraud, it can occur in other ways. The most common forms of fraud are listed below.
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Examples of Credit Card Fraud
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Card fraud happens when someone obtains your credit Card account number and uses it to make fraudulent purchases. Here are some common examples:
- A dishonest store or restaurant employee may make an extra imprint of your Card or use your Card number to make unauthorized charges.
- A cashier might swipe your Card in a small handheld device known as a skimmer, which copies the information on your Card, including your Personal Identification Number (PIN), to make a counterfeit copy of your Card. This is called skimming.
- Someone may record your credit Card and/or PIN as you enter them on a telephone keypad or as you give them to a telephone operator for a legitimate purchase if you do so in a public place.
- A thief may get your account number and expiration date from a discarded receipt.
- A thief may set up a fake website on which you have to use your Card to purchase products and services.
- Someone claiming to be a telemarketer might request your Card number to enter you in a contest or secure a contest prize.
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How to Prevent Fraud
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The Federal Trade Commission recommends the following tips to help protect you from credit and charge card fraud:
- Sign your Cards as soon as they arrive in the mail.
- Carry your Cards separately from your wallet in a zippered compartment, a business Card holder, or another small pouch.
- Keep a record of your account numbers, their expiration dates, and the phone number and address of each Card issuer in a secure place.
- Keep an eye on your Card during every transaction, and get it back as quickly as possible.
- If your transaction includes a carbon form, ask for the carbon copy and destroy it immediately.
- Void incorrect receipts and save correct receipts to compare with billing statements.
- Open bills promptly and reconcile accounts monthly, just as you would your checking account. When paying bills by mail, ensure your Card and bank information don't show through the envelope.
- When ordering online, only use secure web pages, which will feature a locked padlock in the lower left–hand corner of your browser window.
- Report any questionable charges promptly and in writing to the Card issuer.
- Notify Card issuers in advance of a change in address.
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Identity Theft Assistance
Identity Theft is a type of fraud in which someone uses your name, usually to gain control over your personal finances.
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Examples of Identity Theft
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Identity theft assistance
Identity theft is a type of fraud in which someone uses your name, usually to gain control over your personal finances.
The Department of Justice reported in April 2006 that an estimated 3.6 million U.S. households — or about three out of every 100 — reported being victims of identity theft. Here are some common examples of identity theft:- Sign your Cards as soon as they arrive in the mail.
- Carry your Cards separately from your wallet in a zippered compartment, a business Card holder, or another small pouch.
- Keep a record of your account numbers, their expiration dates, and the phone number and address of each Card issuer in a secure place.
- Keep an eye on your Card during every transaction, and get it back as quickly as possible.
- If your transaction includes a carbon form, ask for the carbon copy and destroy it immediately.
- Void incorrect receipts and save correct receipts to compare with billing statements.
- Open bills promptly and reconcile accounts monthly, just as you would your checking account. When paying bills by mail, ensure your Card and bank information don't show through the envelope.
- When ordering online, only use secure web pages, which will feature a locked padlock in the lower left–hand corner of your browser window.
- Report any questionable charges promptly and in writing to the Card issuer.
- Notify Card issuers in advance of a change in address.
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Preventing Identity Theft
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There are several ways to limit your exposure to identity theft. Safeguarding your personal information and regularly reviewing your Card statements and credit reports are among the best ways to prevent identity theft.
There are a number of ways you can prevent identity theft:- Shred or tear up papers with personal information before you throw them way, including pre–approved credit card offers, medical records, canceled checks, bills, bank statements, and bank convenience checks.
- Do not give out your Card number or PIN to anyone over the phone, through the regular mail, or on the Internet unless you are sure you are communicating with a legitimate employee of a reputable organization.
- Safeguard your Social Security number by keeping it at home in a secure place. It is the primary target for identity thieves because they can use it to access your credit report and bank accounts.
- Never leave an ATM, store, or gas receipt behind. Take it with you, and shred it or tear it up before you throw it away.
- Delete e–mails that appear to be from a company you know (such as your Internet Service Provider, bank, or utility company) asking you to update their records. If you must update your records, enter the organization's URL into your browser to access its website directly.
- Use firewall, virus, and spyware protection software on your computer and protect your personal information with strong passwords — with at least eight characters — that are difficult to guess.
- Check your bills and bank statements right away for unauthorized activity and report it immediately. (See Restoring Your Good Name for contact information.)
- Contact your Card issuer, utility, cable, or telephone provider if your bills don't arrive on time, as this is a sign that someone has changed your address or is stealing your mail.
- Stop pre–approved card offers. They are a tempting target for identity thieves who steal your mail. Have your name removed from credit bureau marketing lists. Call toll free 888–5OPTOUT (567–8688).
- Check your credit reports regularly — for free. You can get a free credit report every year from each of the three national credit bureaus: Equifax, Experian, and TransUnion. Order by phone, toll free, at 877–322–8228, or online at www.annualcreditreport.com.
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Detecting Identity Theft
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You may not discover your identity has been stolen until after it has occurred. That's why it is important to check your Card balance and activity routinely.
By carefully reviewing your Card activity, you can detect and address identity theft before your credit history is significantly damaged. Here are some things you can do:- Contact your Card issuer immediately if you receive bills for an account you never opened, or you notice unfamiliar or unauthorized charges on your bills.
- Correct inaccurate or suspicious information on your credit report by contacting the credit bureau(s) immediately. If the incorrect or suspicious information concerns a particular creditor, you will want to contact that creditor as well.
- Request and review your credit report if you get turned down for a credit card or a loan.
- Ask questions whenever you are asked for personal information from someone who has access to your financial information, such as a bank teller, landlord, or cashier.
- Contact the police if a stranger seems to have access to too much of your personal information or if you become aware that someone else is using your identity.
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Restoring Your Good Name
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If you discover your identity has been stolen, there are actions you should take immediately to stop further damage and restore your good name and credit.
Identity theft is a serious crime that can be stopped with diligent and swift reporting. These are the steps you should take if your identity has been stolen.- Contact your Card issuer: Call your issuer immediately, and follow up the telephone call with a certified letter stating as many facts as you know at the time. Many issuers require a written confirmation within 30 days of verbal notification.
- Contact the police: You will also want to obtain a copy of the police report, the police report number, and the name of the investigator. Banks, credit card companies, and other agencies may require this information as proof of a crime.
- Contact the credit bureaus: Notify the three major credit bureaus (Equifax, Experian, and TransUnion) that you have been a victim of identity theft and request that your file be flagged with a "Fraud Alert." Fraud Alerts expire after six months, so you may want to ask how you can extend it if needed.
- Close suspect accounts: Close the accounts you know or suspect involve identity fraud, and contact the governmental authorities. You can find contact numbers under Fraud Resources on this page.
- Keep a record of your actions: Follow up all telephone conversations in writing and send these letters via certified mail with return receipts requested; maintain copies of all written correspondence, as well as copies of all statements with suspect activity, for your files.