Types of Fraud
UNDERSTANDING THE TYPES OF FRAUD
From identity theft to phishing, there are a number of different types of fraud. Learn more about the types and how to avoid becoming a victim below.
Identity theft occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. It can cost you time and money, destroy your credit and ruin your good name. Identity theft continues to be one of the fastest growing crimes in the United States and has ranked as one of the top consumer concerns. The Federal Deposit Insurance Corporation (FDIC) has produced a multimedia presentation to help consumers protect themselves providing information on steps you may take to secure your personal computer and protect yourself from identity theft. It also includes suggestions on what to do if you become a victim of identity theft. View it below.
Phishing can come in many forms—through email, by phone or by text message. The message may seem authentic, and in some cases the perpetrators have taken great care to obtain personal information that appears legitimate. In all cases, you are asked to communicate back in some way by calling a specific phone number of clicking on a link and providing your personal information. The message may come from a financial institution or company you are familiar or unfamiliar with, one that you may or may not do business with currently. Whatever form the message arrives in, it may resemble something like these:
“We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click the link below and confirm your identity.”
“During our regular verification of accounts, we couldn't verify your information. Please click here to update and verify your information.”
This is a scam referred to as phishing, and it involves internet fraudsters who send spam or pop-up messages to lure personal information from unsuspecting victims.
Skimming is a method by which thieves obtain your credit or debit card account information to create counterfeit credit or debit cards. It takes place at the point of purchase. Your card is swiped for an actual purchase, then swiped again into the skimming device which could be a hand-held or similar device.