Do you know that how you dispute fraudulent charges on a debit card is different than on a credit card? Consumer protection laws differ in each case and knowing the differences can help to keep your accounts safe from identity theft.

Mainly, if you need to dispute a fraudulent debit card charge, the funds you lost were yours only. In the case of a fraudulent credit card purchase, however, the card issuer has lost their money, which they’ve extended to you through a line of credit.

Handling credit card fraud is generally easier than handling debit card fraud because credit issuers have a vested interest in protecting their financial interests, whereas banks only hold the money that you already possess.

If you frequently use your debit card online, you may want to reconsider. While there are protections for both, you can face more liability for fraudulent charges than if you’d used your credit card instead.

Consumer Protection for Debit Card Transactions

Consumers who use debit cards are protected by the Electronic Funds Transfer Act (EFTA).

This law lays out the liabilities of the consumer as follows:

• If a lost or stolen debit card is reported to the financial institution before any fraudulent purchases can be made, the consumer faces no liability.
• If a lost or stolen debit card is reported within 48 hours, the consumer’s liability for any fraudulent transactions is limited to $50.
• If a lost or stolen debit card is reported after 48 hours but within 60 days, the consumer’s liability is limited to $500.
• If a lost or stolen debit card isn’t reported within 60 days, the consumer is liable for any and all fraudulent charges incurred. This includes all money drained from the debit card account, any overdraft fees, and money taken from any accounts that are linked to the debit card account.

How to Dispute Fraudulent Debit Card Charges

If you notice an unauthorized transaction in your debit card account, immediately contact the business where the transaction occurred, and tell them the charge was unauthorized. Merchants want to keep their customers happy and avoid chargebacks from the bank, so it’s worth asking if they’ll refund you for the charge. They may work with you to investigate the fraud and generate a report for the police.

Then, call the customer service number on the back of your card and explain the situation. They are likely refer you to the fraud department, which can investigate from there and may request additional information.

They can advise you on your next steps. It’s also recommended that you get everything in writing-the Federal Trade Commission provides a sample letter you can fill out and send to your bank.

Check all your accounts to make sure no others were compromised. Change your PINs, online banking passwords, and keep a close eye on your accounts.

Consumer Protections for Credit Card Transactions

Credit card users are protected by the Fair Credit Billing Act (FCBA). Similar to the EFTA, this law ensures that if a consumer reports his or her credit card missing or stolen, they face no liability for any fraudulent charges thereafter.

However, the FCBA also states that consumers’ liability cannot exceed $50 for any fraudulent credit card transactions. If the physical card was not lost but its numbers were stolen and used, the consumer faces no liability. Additionally, many financial institutions offer credit cards that guarantee zero liability for any fraudulent transactions.

The FCBA also protects consumers in the following situations:

• An item ordered online or otherwise for delivery never arrives.
• An item that was purchased is faulty or not the same as what was ordered.
• Any case in which the consumer was charged too much for a product.

How to Dispute Fraudulent Credit Card Charges

If your credit card number has been compromised and you notice an unauthorized charge, report it to the business where the charge occurred. Then, immediately report it to your bank in order to make sure you aren’t liable for up to $50.

Your credit card issuer can send you a new card with a new number and investigate the disputed charges immediately. Again, check all accounts to make sure no others were compromised, and change all PINs and banking passwords as soon as possible.

Order your credit report to make sure there is no additional fraud such as credit cards being opened in your name. If you notice any pattern of fraudulent activity or billing inconsistencies, file a police report.

After you’ve filed with the police, contact the three major credit bureaus to request a credit freeze and put a fraud alert on your profile. Consider signing up for identity theft protection and set up fraud alerts with your bank.

When Should I Use a Credit Card?

Here are some instances when using a credit card may be a good option:

• Online Shopping: Credit cards or virtual credit cards can be a safer option for online shopping as they offer better fraud protection than debit cards. For example, if your credit card information is compromised, you can dispute the charges with your card company and not have to pay them while the issue is resolved. Also, some credit cards come with additional security features, like virtual card numbers or two-factor authentication, to further protect your information.
• Gas Pump: Gas pumps are a prime target for credit card skimmers, who can steal your card information. Using a credit card instead of a debit card can protect your checking account from fraudulent charges and the hassle of disputing them.
• Credit Score: Using a credit card responsibly can help improve your credit score. Making timely payments and keeping your balance low can demonstrate to lenders that you are a responsible borrower.
• Rewards: Many credit cards offer rewards or cash back for purchases made with the card. If you can pay off the balance in full each month, using a credit card for everyday purchases like groceries or gas can be a great way to earn rewards and save money. Just choose a rewards program that fits your lifestyle and spending habits.

To help avoid accumulating unnecessary debt, you should refrain from using your credit card for high-cost purchases. Additionally, using your credit card to withdraw cash or make cash advances should be avoided due to high fees and interest charges.

When Should I Use a Debit Card?

Here are some instances when using a debit card may be a better option than a credit card:

• Staying Out of Debt: Debit cards allow you to spend only the money in your checking account, making it easier to avoid overspending and getting into debt. With a credit card, spending more than you can afford and carrying a balance can be tempting, leading to high interest charges and debt.
• Need to Take Out Cash: If you need to withdraw cash, a debit card may be the best option, as it allows you to access your funds without incurring cash advance fees or interest charges. Use your debit card at a reputable ATM to avoid skimmers and other fraud schemes.
• Saving Money on Interest: Since debit cards don’t have an interest rate, you can avoid paying interest charges on purchases and save money in the long run. This can be especially helpful for larger purchases you plan to pay off over time, as you won’t incur interest charges like a credit card.

The Bottom Line

It’s essential to protect yourself from credit and debit card fraud. If you notice unauthorized charges on your credit card, report them immediately for a credit to your billing statement. Use credit cards for online purchases to avoid damaging your ability to pay other debts.

You can also use IdentityIQ services to monitor your credit and protect against identity theft. Stay vigilant and safeguard your finances to enjoy greater financial security.

The post Credit Card Fraud VS. Debit Card Fraud: Are you Protected? appeared first on IdentityIQ written by Michael Scheumack

The post What is Phishing? appeared first on IdentityIQ written by Michael Scheumack

The dark web has been around for a long time, but it’s recently risen in pop culture — and for many people, it’s a relatively new concept. Increasingly frequent data breaches and cases of identity theft have put the dark web on our radars, but the subject remains strange and unclear to many people. As with many topics related to identity theft, knowledge is one of your best tools to keep yourself safe.

To untangle the many mysteries of the dark web, this article we’ll provide an extensive look at what the dark web is, why it exists, what it means for you as a consumer, how you can protect yourself, and what to do if you discover your information is compromised.

What is the dark web?

In a nutshell, the dark web is a corner of the internet comprised of websites that aren’t indexed by search engines like Google. This means that you need to find these websites via invitation, shady forums, or good old-fashioned word of mouth rather than a typical query in a search engine. This typically makes them hard to find for the average internet user but ensures the anonymity of those who do know about the dark web.

How do people use the dark web?

Someone who wishes to access the dark web must download special software and a unique web browser that’s able to access these hidden websites — the most common being Tor. This browser routes the internet activity through multiple IP addresses across the world, all but guaranteeing the user’s anonymity.

Is it illegal to go on the dark web?

There are valid reasons for visiting the dark web, such as:

• A desire for privacy when using the web, so the user’s data won’t be tracked
• Retaining anonymity for journalists, human-rights activists, and other political dissidents who work in countries that are hostile towards their efforts
• Retaining anonymity for whistleblowers

However, this anonymity also has allowed for the dark web to essentially serve as a digital black market.

Using nearly untraceable cryptocurrencies like Bitcoin, dark web users can engage in illicit transactions ranging from weapons and small amounts of drugs to human trafficking. Authorities and intelligence in many countries are in a constant battle with dark web. While there have been some successes in the seizure of sites engaging in various illegal activities, new sites pop up so frequently that it may seem like authorities are barely making a dent.

Risks the dark web poses to your identity

As consumers in the digital age, the dark web poses a threat to all of us. Chief among the goods someone can purchase on the dark web is stolen personal data. This can be used for identity fraud, and if you’re not careful, it could be your data at risk.

Data breaches that affect tens to hundreds of millions of consumers have become par for the course in America, and the business of stolen personally identifiable information is booming.

When hackers are able to penetrate the security measures of large-scale institutions like credit bureaus, retailers, and social media platforms (just to name a few), they can then dump the stolen data into black markets on the dark web to turn a quick profit.

Information as sensitive as a Social Security number can sell for as little as $1 . When criminals have scores of personal data at their disposal, they don’t need to charge very much to make a profit. Identity thieves will ensure that the costs of this theft falls to the victims of their crimes.

Stolen information on the dark web often includes:

• Social Security numbers
• Driver’s license numbers
• Credit & debit card information
• Subscription accounts
• Email addresses
• Medical Records
• Online banking credentials
• Complete identities – package of full name, birth date, SSN, account numbers, and sometimes more

Given how much data we share online and the rising frequency of data breaches, many consumers likely have at least some of their information on the dark web already and don’t even know it.

Protecting your sensitive info from the dark web

Data breach events like the 2017 Equifax breach are out of the control of consumers, and unfortunately, cannot be prevented by taking proactive measures on an individual basis. It’s important to the institution that we provide our info to do things like open bank accounts or use the financial system at all, even if it puts our identities at risk.

As is the case with most forms of identity theft, your safest bet is to constantly be on the lookout for strange activity in your name.

• Actively monitor your credit and order your reports
• Read into any strange calls or correspondence from credit or collections companies
• Be very careful about where your personal information is stored
• Use strong passwords and diversify them across all of your accounts.

IdentityIQ services include dark web scans that search for any trace of your information on the black markets, as well as many other services, to ensure you know right away if any fraudulent activity has occurred in your name. For more information, check out our identity theft protection.

The post The Dark Web is Booming: Is Your Info at Risk? appeared first on IdentityIQ written by Michael Scheumack

Child identity theft is becoming a serious and costly problem that can affect families long after their children become adults. In fact, more than a million children were affected by identity theft and it cost families more than $540 million out of pocket in 2017 alone.

Do you feel confident spotting the signs of child identity theft before it’s too late for your family? Here’s what every parent needs to know.

Why Child Identity Theft Happens

According to that same study by Javelin Strategy, two-thirds of the victims were 7 years old or younger and 6 in 10 of the victims knew the fraudster personally. Children aged 6-11 were the most vulnerable group.

A child’s stolen information can be used to:

• • Open new lines of credit
  • Open new bank accounts
  • Apply for jobs and loans
  • List the child as a dependent on a fraudulent tax return
  • Give false information to law enforcement

If an identity thief obtains a child’s information and uses it to commit fraud, it could go unnoticed for years if the child’s credit is not being actively monitored. The child’s personal Identifiable information could then be sold on the black market at a premium because child identity theft is so much more likely to go unnoticed until the child begins applying for housing, student loans, jobs, and credit cards as an adult.

The longer your child’s identity has been compromised, the longer it takes to recover their credit.

3 Tips to Prevent Child Identity Theft

Fortunately, there are steps you can take to protect the identity of your child. While nobody is safe from external threats like data breaches or skimming, there are ways to monitor your child’s credit in case something happens and prevent information from falling into the wrong hands.

1. Keep track of your child’s personally identifiable information (PII):

This information could include:

• The child’s full names
• Social security number
• Driver’s license number
• Passport number
• Bank account number
• Doctor’s records
• School Photos with names attached

Think of all the places that may store your child’s sensitive information. It could be stored at their doctor’s offices, schools, daycares, and even your accountant’s office. It may be stored either digitally or physically. Even a school picture with your child’s name attached could be used to identify them on social media and then used to steal their identity.

Make sure that forms or any papers containing sensitive information are kept in a safe place and shredded before disposal.

Never give out your child’s information without ensuring that there are security measures in place to protect it. Ask the following questions of any organization that keeps track of sensitive personal data:

• Where are the forms and papers stored physically? Are all papers shredded before disposal?
• Where is my child’s information stored digitally? What kind of online security protocols are in place to deter hackers from accessing it?
• Who else has access to my child’s personal information?
• When my child is no longer a patient/student/etc., what happens to their personal information?

2. Consider freezing your child’s credit

You can choose to pre-emptively place a freeze on your child’s credit with all three of the major credit bureaus – Equifax^®, Experian^®, and TransUnion^® – to ensure that no fraudulent lines of credit will be opened in their name until the freeze is lifted.

You’ll need the same kind of documentation you’d need to freeze your own credit. You’ll also need a birth certificate and proof that you have the authority to freeze their credit. You’ll also need to request the freeze from each bureau separately:

• Equifax freeze request form for minors Experian only allows freezes on minors 14 years or older Transunion fraud alert and freeze forms for minors

If you choose to freeze your child’s credit, be very careful! You’re required to supply a specific PIN number to lift or ‘thaw’ the credit freeze once your child becomes an adult, which could mean keeping track of a pin number for a decade or longer. If you’re worried about keeping track of a PIN, consider a family identity theft protection policy instead.

3. Talk with your child about the importance of online safety

Make sure that your child is aware of the importance of online safety. The more they understand the dangers of sharing sensitive information online, the safer they’ll be.

Talk with your children about:

• Interacting with strangers online
• Filling out online contact forms
• Creating accounts on websites
• Signing up for certain services or online shopping

Monitor their internet usage and ensure they are steering clear of dangerous sites and other internet users who might cause them harm.

Warning Signs of Child Identity Theft

The following could signal that your child’s identity is under attack:

• Unpaid fine notices: If your child receives notices about unpaid fines when they apply for their driver’s license, this could mean they are already a victim of identity theft.
• Credit card mail offers: If you receive mail addressed to your child about credit cards that they’ve pre-qualified for, a card may have already be open in their name. Rather than ignoring it because you think it’s a mistake or technical error, take steps to ensure that no fraud has occurred.
• Being denied government benefits: If your child is denied for government benefits like food stamps or health care, or you are unable to claim them as a dependent on your taxes, it’s possible that someone has already used their social security number for these purposes.
• IRS notices addressed to your child: If an IRS notice states that your child hasn’t paid required income taxes or that their SSN has been used on a tax return, it’s time to investigate for identity theft.
• Collection calls and bills in their name: If you’re getting calls about money owed or you receive bills in the name of your child, their information may have been used fraudulently to make purchases.

What to do if Your Child’s Identity is Stolen

If you’re suspicious that your child is a victim of identity theft, contact the three major credit bureaus. Reach out to all three separately when taking these steps. Here’s what to cover:

• Request a manual search of your child’s file: A manual search will examine all files associated with both their name and social security number and files with only their social security number.
• Request to remove information associated with your child: You can then request that each credit bureau remove all information that is associated with your child’s name or social security number upon providing them with a copy of the Uniform Minor’s Status Declaration, which proves that your child is indeed a minor.
• Request a fraud alert: For this step, you only need to call one of the three major bureaus because they’ll contact the other two. Place a fraud alert on your child’s credit report to be notified whenever their Social Security number is used.
• Contact the business where fraud occurred: Let them know that your child is a minor and that the account activity was fraudulent. Request that they close the account and do not hold your child liable for any purchases.
• Consider a credit freeze: If your child was a victim of identity theft, it’s a good idea to freeze their report to ensure the thief cannot continue to use their information. This step is absolutely critical until their identity is secure again.
• Report any suspicious activity: Report identity theft to the FTC by calling 877-438-4338, or visiting IdentityTheft.gov.
• Consider identity theft protection: It can quickly identify signs of identity theft while providing 24/7 credit report monitoring.

The post Child Identity Theft: Prevention & Protection Guide appeared first on IdentityIQ written by Michael Scheumack