Methods of Fraud -- How To Spot Them
It can take a long time to detect fraud, so make sure you're on the alert
Although most people realize that fraud is a serious danger, many don't understand exactly how quickly it moves and how difficult it is to stop. By the time you uncover fraud in one area of your life, an identity thief may very well have spent thousands of dollars in your name. These tips help you spot fraud early and, hopefully, stop it before it gets out of hand.
1. Watch for any unusual activity in your accounts
Spot a charge of fifty cents and don't know what it's from? Jump into action! First of all, spotting any small signs of fraud can signify that thieves are at work. And while they may only be siphoning small amounts out of the account you spotted, they could also hold credit cards in your name.
Furthermore, it's a common practice for identity thieves to 'test the waters' before committing fraud. Once they get a mark's information, they make small charges to see if you notice and report them. If you do, they know not to bother trying anything bigger. If you don't, they assume you're not very conscientious about your financial records and they can get away with a lot.
2. If you find unusual activity in one area of your life, assume it happens in other areas, too
Stories abound of people who discover fraud, take steps to stop it, and become victims all the same. Usually, it's because while they discover one area of fraud, such as a debit card, the thieves are using other cards and credit obtained in their name. Identity thieves milk a cow dry, so assume that if they're into one of your accounts, they're into others, too.
3. Don't rely on organizations to keep things organized
Papers get lost and people are forgetful. The affidavit you signed for your bank can easily vanish in a stack of paperwork, and the fraud alert you placed on your credit file can disappear. Never assume that just because you've made a request or signed a paper everything's all right: always follow up.
As long as you take these steps, you have a good chance of stopping fraud before it ruins your financial history -- and maybe even your life.