Avoiding fraud
It's important to protect your good credit history from mistakes and fraudulent use, so that only you enjoy the benefits of your financial discipline. Outlined below are three common types of fraudulent activity you should be alert to.
Identity theft. If someone obtains your personal information, he or she may be able to use your credit card or open a new credit account in your name, both of which will damage your credit history. That scam is known as identity theft, since someone is trading on your identity and the credit attached to it.
Telephone fraud. Another scam to be aware of is fraudulent telemarketing calls. The majority of telemarketing calls offer legitimate products and services, but some may be scams, simply trying to convince you to give out your Social Security number, credit card number or bank account information over the phone. If you get a call from a telemarketer, ask them to send you information in the mail. Even if it's a legitimate company, it may be a good idea to consider a specific offer only in writing.
Online fraud. On the Internet, a common scam known as phishing relies on emails that appear to be from a bank or other reputable company. You'll be asked to confirm your account information by entering it on a website that appears legitimate. Instead of going to the company or bank, though, the scammers intercept your information.
As a general rule, you should never give out personal information to a company or bank you didn't contact. And a reputable bank or company would never request information by email.
