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This week’s column is provided by American Express Financial Advisors

Avoid becoming a victim of fraud

A couple takes a trip to a Caribbean island to relax in the sun. During their stay, they make credit card purchases at several hotels and restaurants. On returning home, they receive their monthly credit card statement that, much to their surprise, includes several charges from locations they never visited.

They are mystified: The cards are still in their possession – they were never lost or stolen.

Fortunately, the law protects consumers from unauthorized charges over $50. Still, because clearing up a fraud involves red tape and aggravation, you should do everything you can to protect yourself against it. Consider these ideas:

Keep your confidential numbers confidential
Report lost or stolen cards immediately. Often, the issuer can stop the thieves by canceling your card.

Also, avoid writing your personal identification number on your credit card. That way a thief won’t be able to make a cash withdrawal.

As the incident above proves, a thief doesn’t need your credit card to access your account. To protect your number:

1. Shield your credit card from people around you when making purchases at stores.
   
2. Verify monthly billing statements and report any fraudulent transactions immediately.
   
3. Total your charge slip before signing it. Blank spaces are invitations for crooks to add additional amounts.
   
4. Never sign a blank credit card slip.

For more information about credit card fraud, visit the Federal Trade Commission’s Web site, where you can also file an online complaint about a loss or a company’s handling of it.

Don’t let telemarketers hand you a line
Before you do business with telemarketers, ask for their company name and address and request a clear explanation of the offer they are making. It’s always wise to ask the caller to send you written material before making a purchase.

You’re in control of a transaction, so don’t be bullied or intimidated into buying a product. If a caller demands that you make up your mind immediately or send cash today, it may be a scam.

Most important, don’t give any caller your bank account number; it may be used to withdraw your money without your permission. Credit card numbers should also be used with caution in phone transactions. Unless you initiate the call, don’t share your numbers with anyone.

Report any suspicious activity to your state attorney general (listed in your local phone directory and on the National Association of Attorneys General Web site).

You can also contact the Federal Trade Commission at 1-877-FTC-HELP to file a consumer telemarketing complaint.

June 29, 2000

American Express Financial Advisors Inc. Member NASD. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer.

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