Editor’s note: This is the latest entry in a yearlong series on protecting yourself against fraud. You can read additional posts about fraud here.
For this month’s entry, we talked to our fraud investigator who specializes in protecting our members from debit and credit card fraud and got some tips about how to protect yourself from fraud when using a card.
“If it sounds too good to be true, it probably is.”
While this advice is always good to bear in mind, it’s especially true when you’re shopping online.
That means:
- Be wary of websites that offer extremely low prices.
- Be skeptical of “free trial” and “just pay shipping” sites.
- Be careful with websites you found on social media.
That deal that popped up in your Facebook feed offering those hard-to-find sneakers for 90% off? Probably not legit.
That “free iPhone” you won when you clicked to spin the wheel? Again, probably not legit.
Remember, if it sounds too good to be true, it probably is.
“Get proof.”
No matter where you’re doing your shopping, our fraud investigator says you should always get proof that you can refer to in the future.
This applies whether you’re making a purchase for something you may want to return or paying for a service like a lawn service or an auto repair.
But it also applies to proof of cancellation. If you’re canceling that subscription service you no longer use or trying to opt out of autorenewal before that free trial runs out, make sure you get an email or a receipt that will allow you to show that you did indeed cancel that service if you get charged again.
“Use a credit card.”
Our investigator reminds us that many times credit cards offer more protections than a debit card (and of course, we hope you’re earning rewards).
Perhaps more importantly is the fact that if the organization you purchased from is compromised in some way, your checking account is safe if you used a credit card.
“Be vigilant against common scams.”
You may think we talk about these a lot, and there’s a reason we do. Common scams are common for a reason – people keep falling victim to them. Two of the more costly scams are gift card scams and what we might call marketplace scams.
Do not buy gift cards and send the gift card numbers to someone you don’t know – or who is impersonating someone you do know. These scams are conducted by fraudsters who trick their victims into purchasing gift cards and then sending the gift card credentials. These may come in the form of prize offers, romance scams, or even posing as a government agent or your boss.
Be extra careful when purchasing something online from an individual whether through a channel like Etsy, Craigslist, or Facebook. Marketplace scams are utilized by scammers to steal money and/or personal information. Watch out for brand-new accounts by making sure the seller has an established history and good reviews. Use payment platforms that offer purchase protections or a credit card when possible. Keep all your conversations with the seller on the purchasing platform so you have a record of them in case you need to report the conversation to the platform.
If you are meeting someone to pick up an item that you purchased online, be sure to meet in a well-lit public place. It’s also best to not make a payment (regardless of the payment method) until you have received the item and confirmed it is in satisfactory condition.
Check back next month for more tips on protecting your identity and your financial life.
Equal Housing Opportunity Lender