Students targets for credit card fraud

Crime: Protection comes from close watch, reports from national agencies

HEATHER DEMETRIOS
Contributing Writer
With a mysterious $5,000 charge on her annual credit report, Marissa Parsons, a junior majoring in health promotion and disease prevention, joined the long list of credit card fraud victims.

A credit card fraud crime ring is developing in Los Angeles, using people's social security numbers and names to apply for credit cards and then using them to receive cash advances. Parsons was likely targeted in April or May, but did not find out about the charges until two weeks ago.

"They somehow stole my social security number and found out my name and then used that to apply for a card," Parsons said.

When she saw the charge, she immediately called the credit card company who put a fraud detective on the case.

"On the report, there were all these addresses on random streets in L.A. that I had never lived at," she said.

After Parsons answered the detective's questions, the company did not require her to pay the charges and assumed responsibility for them. Generally, credit card companies do not make the holder show proof that they did not make the purchases or keep them accountable for the charges under their name.

"They usually don't get reports of people falsely claiming that their card is stolen," said Raphael Bostic, a professor of policy, planning, and development, and a former Federal Reserve research economist dealing with consumer issues.

Though the identities of the criminals are still unknown, the detective Parsons dealt with did say that the ring is probably from Florida, because that is where they went to max out the cards.

Parsons has no clue how the suspects got her social security number.

People are able to obtain a social security number, credit card or credit-related information in many different ways, Bostic said.

Fraud doesn't just occur because a credit card is physically lost. Many times, it occurs when someone is making a purchase and other people can view the information on the card.

Another way fraud can occur is if mail gets intercepted and that information is used.

Bostic advises students to be cautious when using their credit cards.

"Be careful when you make your purchases, don't loan your card to anyone to use control your cards yourself," he said.

Because credit card numbers are being used more often due to Internet purchases, consumers are often unaware of the transactions on their account, Bostic said.

Most students do not realize how easy it is to become a victim of fraud.

"I don't take any precautions other than not lending (a credit card) to anyone and not lying around," said Vince Lazald, an undeclared freshman.

Many people are concerned about the security on the Internet, but Bostic said there is no additional risk to shopping online.

"I don't think it matters that much (what kind of card you use on the Internet)," Bostic said. "I've shopped online a lot of times and have never had a problem with those purchases. Most sites are secure and usually a notice will pop up on the screen indicating a protection mechanism,"

A key problem is that many credit card holders do not pay close attention to their monthly statements to know whether or not fraud is an issue for them, Bostic said.

Stephanie Uzureau, a freshman majoring in theater, does all she can.

"Everything is done by computers and I don't trust computers, so I always check my statements really carefully," Uzureau said.

There is one way that cardholders can prevent someone from applying for cards in their name. Detectives suggest that fraud victims call the three major companies that control all credit card applications in the U.S. By adding a fraud alert to a credit report, companies call the applicant and verify that it is the person applying for a card.

Though it makes instant- approval cards impossible, the addition ensures that no one other that that individual can apply for a credit card under that person's name. In addition, credit companies such as TransUnion's Fraud Victim Assistance can also provide copies of credit reports and help for people that fear they are victims of fraud.

Statistics revealing the amount of fraud that occurs among students is difficult to find. In the future there may be a congressional mandate on the subject who will provide helpful statistics and information for student credit card holders.

"There is definitely interest at the congressional level on credit card use and abuse for cards held by students," Bostic said.

Helpful Numbers

The following companies can provide students information on credit reports and help victims of credit card fraud.

Trans Union Fraud Victim Assistance 800-680-7289

Experian 800-525-6285