Chapter 5

What Eight Numbers Do Identity Thieves Want to Steal from You?

Posted on June 21, 2014 by Melissa Hart

This article explains why identity thieves want eight different numbers and also provides some helpful tips for avoiding identity theft. The eight numbers include:

1. Phone numbers
2. Specific dates (birth, college attendance, employment, etc.) and Zip Codes
3. PIN Codes
4. Social Security Numbers
5. Bank Account Numbers
6. IP Address
7. Driver’s License and Passport Numbers
8. Health Insurance Account Numbers

For more information go to

http://finance.yahoo.com/news/8-numbers-identity-thieves-want-103033107.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress that identity theft is on the rise. According to the article, data breaches are now the third certainty in life and sooner or later, you will become a victim.
  • Ask students who have had their identity stolen what steps were necessary to solve the problems associated with identity theft.

Discussion Questions

1. What have you done to protect the eight numbers that thieves want and need to steal your identity?

2. Today many companies offer services designed to help protect your identity. These companies charge from $100 to $200 a year or more. Would you consider using one of these services?

Categories: Chapter 5, Credit Cards, Debit Cards, Identity Theft | Tags: , , | Leave a comment

Bogus $10,000 Credit Line

Posted on June 4, 2014 by Melissa Hart

In May 2014, the Federal Trade Commission mailed checks totaling over $3.7 million to over 26,000 consumers whose bank accounts were debited without their consent by EDebitPay LLC.  The company deceptively offered a $10,000 credit line that was really a membership to a website where consumers could buy goods.

In 2011, a federal district court ordered the company to pay more than $3.7 million after finding that the defendants were in contempt of court for violating a 2008 court order by selling a bogus “$10,000 credit line”, and a “no cost” prepaid debit card with hidden fees, to consumers who were unemployed or had poor credit.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

For additional information on fraudulent business practices, go to

http://www.ftc.gov

Discussion Questions

1.  How do you discover that someone has debited your bank accounts?

2.  What steps can you take to prevent such fraudulent business practices?

Teaching Suggestions

*  Ask students what actions might they take to ensure that their credit cards and other financial information are secure.

*  Ask students to compile a list of resources a person can use to report such fraudulent business practices, and check out a company’s reputation before signing a contract.

Categories: Chapter 5, Identity Theft | Tags: , , , | Leave a comment

Protect Your Personal Information and Money

Posted on May 15, 2014 by Melissa Hart

Recent reports about thieves gaining access to sensitive personal information that can be used to commit fraud or steal money, sometimes involving major security breaches at large retailers such as Target stores.  While federal laws and industry practices generally limit losses for unauthorized transactions involving bank accounts, debit and credit cards, it pays to be proactive.

Be careful when you use social networking sites.  Scammers use social networking sites to gather details about individuals, such as their place or date of birth, a pet’s name, their mother’s maiden name, and other information that can help them figure out passwords–or how to reset them.  Even small amount of information can help them steal your identity, such as by answering security questions that control access to accounts.  According to Michael Benardo, Chief of the FDIC’s Cyber Fraud and Financial Crimes Section, “Don’t share your ‘page’ or access with anyone you don’t know and trust.  Criminals may pretend to be your ‘friend’  or relative to convince you to send money or divulge personal information.”

For additional information and tips on avoiding fraud at social media sites, go to the Internet Crime Complaint Center at

http://www.ic3.gov/media/2009/091001.aspx and http://www.fdic.gov/consumers/consumer/news/cnfall13/socialmedia.html

Discussion Questions

1.  What can you do to guard against scams involving fraudulent requests to wire money or send a prepaid card?

2.  Why should you be suspicious about unsolicited emails or text messages asking you to click on a link or open an attachment?

Teaching Suggestions

You may want to use the information in this blog and the websites to

*  Discuss the importance of regularly reviewing your transactions in your credit card and bank statements.

*  Carefully choose user IDs and passwords for your computers, mobile devices, and online accounts.

*  Periodically review your credit reports to make sure someone else has not obtained a credit card or a loan in your name.

Categories: Chapter 5, Credit Scores, Identity Theft | Tags: , | Leave a comment

Billing Errors on Your Credit Card Statement

Posted on May 11, 2014 by Melissa Hart

The Federal Deposit Insurance Corporation’s Response Center reports that billing disputes and error resolution problems and processes are the most common types of complaints it received in 2012 and 2013 related to credit cards.  And, according to the Consumer Financial Protection Bureau, many consumers are confused and frustrated by the process of challenging inaccuracies on their monthly statements.

Checking your statements periodically also can help you monitor your spending.  You may want to sign up for alerts on your mobile phone or through your email that inform you when your credit card has hit a specific balance amount or you are close to your credit limit.  Other alerts can remind you about an upcoming bill.

If you notice a billing error, such as an unauthorized charge on your statement, contact the card issuer as soon as possible.

 For additional information and guidance, see consumer information from the Federal Trade Commission at http://www.consumer.ftc.gov/articles/0219-fair-credit-billing.

 

Discussion Questions

1.  What might be some reasons for consumers to be confused and frustrated by the process of challenging inaccuracies on their monthly statements?

2.  What are advantages of checking your monthly credit card statements?

Teaching Suggestions

You may want to use the information in this blog post and the FTC website to

  • Have students make a short presentation with a summary of actions that might be taken to report billing errors to the credit card issuer and other federal consumer protection agencies.
  • Draft a sample letter to dispute a billing error.
  • Review the Fair Credit Billing Act to learn about protecting  their rights if  a billing error occurs.
Categories: Chapter 5, Credit Mistakes | Tags: , , , , , , | Leave a comment

Choosing a Credit Card? Ensure that Your Credit Report is Accurate

Posted on May 4, 2014 by Melissa Hart

Correcting inaccuracies in your credit report may help you improve your credit history and credit score, which credit card issuers consider when deciding whether to offer you a card and how they will determine your interest rate and credit limit. You also can find out if an identity thief has opened credit cards or other accounts in your name.

By federal law, you are entitled to one free copy of your credit report every twelve months from each of the three major nationwide consumer reporting agencies (also called “credit bureaus”)—Equifax, Experian and TransUnion. Each company issues its own report, and because some lender do not provide information to all three of them, it’s useful to request your report from each one in order to get a comprehensive view of you credit history.

For additional information, go to

http://www.AnnualCreditReport.com; http://www.equifax.com; http://www.experian.com; http://www.transunion.com

Discussion Questions

1. Why is it important to check your credit reports every year?

2. Why should you request a credit report from each one of the three credit bureaus?

 

Teaching Suggestions

You may want to use the information in this blog and the above websites to discuss

* What should students do if they find inaccuracies in their credit reports?

* Have students draft a letter to the credit bureau to correct the errors in their credit report.

Categories: Chapter 5, Credit Mistakes, Credit Scores | Tags: , | Leave a comment

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