Home > CANADIAN CREDIT CARDS > CREDIT MONITORING

Credit scams in the cards

The Chilliwack Times (Chilliwack, BC)
September 31, 2002
Section: Money
Byline: Lisa Morry

It's a nightmare that could happen to anybody and may be happening to you right now.

Thieves could be draining your bank account, maxing out your credit cards and opening new lines of credit in your name. They could be signing you up for a cell phone you will never use.

It happened to one local man who filled up his tank with gas, using his credit card to pay for the purchase. The employee behind the counter copied the information from his card and someone used his numbers to go on a shopping spree.

"They (RCMP) managed to confiscate a couple of garbage bags full of receipts," said the man, who didn't want his name used in the newspaper. He said Mounties told him: "It's just rampant."

The man only discovered the problem when he saw his credit card bill, which he usually only used for gas. It showed a $775 phone bill from Alberta, a $550 bill at a local sporting goods store and a $150 charge for a CD player, mail ordered out of the United States. The charges totalled about $1,700 on an account that usually didn't go over $200 or $300.

"You would never know it and that's the problem," said Chilliwack RCMP Const. Monique Desrosiers, who is investigating this and other, similar frauds in the community.

The problem is widespread, multi-faceted and frequently linked to drugs-methamphetamine, in particular-according to Desrosiers. She said she couldn't estimate the size of the problem, but said the two most recent frauds she has investigated, together involve more than 500 victims.

The method varies. Thieves take credit card receipts, either from the garbage or through a planted employee inside a business who copies the information from the credit card receipts.

It's happened at Chilliwack businesses, including gas bars, restaurants, department stores, electronics stores, sporting goods stores and stores in the malls-just about everywhere, Desrosiers said.

Take a look at your credit card receipt, Desrosiers said. It has your name, card number, expiry date and sometimes date of birth-enough information to make a purchase over the phone, on the internet and even in a store.

Thieves also steal information from your mail, taking banking, credit card, and other billing and personal information from various items in your mail box. At tax time, Desrosiers said, they can get your social insurance number and find out if you have mutual funds or other investments. It's not obvious that your mail has been stolen, because thieves have generic keys and there's no damage to the mail box.

Then they break into your car and take your insurance documents, and maybe your wallet if they get lucky, she said. They may come back and go through your mail, looking for more pieces of information about you so they can apply for other credit cards or sometimes attempt to impersonate you.

Thieves might open up lines of credit in your name. For example, at a store with an in-house credit card, thieves might set up a line of credit for $10,000 and the store gives you, a customer with a good credit rating, three months to pay. No one notices until you get the bill.

Cell phones are another big item, Desrosiers said. Thieves order a cell phone in your name and run the bill up to $800 or $1,000.

It's frustrating for RCMP investigators because frequently people don't call the police. "We may never get the opportunity to investigate," Desrosiers said.

However, it's not hopeless. There are ways you can protect yourself.

* Pick up your mail every day. Don't let it sit overnight in your mailbox. If you don't receive a bill you're expecting, call the company and check it out. When you go away, notify your local post office and have your mail held until you get home.

* Check your credit card statement regularly. Question any purchases that don't look familiar. If there's a problem, don't just tell the credit card company, call RCMP fraud investigators.

* Don't throw credit card receipts or other personal information in the garbage.

* Check your credit rating. If something's wrong and it shouldn't be, call police.

Our victim adds his own tips:

* Don't leave your wallet on your desk or in your car.

* If you use your credit card for gas, use pumps that allow you to pay at the pump and the receipt goes no further than you and the gas pump.

He also emphasizes the importance of reporting fraud to the police.

"I now know why I pay 19 per cent interest-it's because you're covering the cost of credit card fraud," he said.

www.chilliwacktimes.com

© Copyright  2002 Lower Mainland Publishing Group Inc., a Canwest Company

Edition: Final
Story Type: Finance

Need Canadian Credit Help Now?  

Visit our Product Page for Canadian Credit Services and Suppliers.