Category Archives: Consumer Protection

Smartphone Users at Higher Risk of Fraud, Identity Theft

April 16th, 2012

A recent survey by Javelin Strategy and Research indicates that smartphone users were a third more likely to be victims of identity fraud than the general public. They attribute this likelihood to several factors:

  • Password protection. The study found that 62 percent of smartphone owners don’t have password protection on their devices. If one of these phones falls into the wrong hands, personal information is just a swipe away.
  • Saved logins. Does your smartphone remember your username and password for your email, social media accounts and financial applications? If so, you are not alone: 32 percent save their login info for the sake of convenience. Saving a few seconds would be a large price to pay for identity theft.
  • Virus protection. We’ll install virus and malware protection on our computers, but we don’t always think to do so on our phones. That’s a major reason why over $1 million was stolen from Android users in 2011 (Android’s open marketplace is more susceptible to virus and malware-ridden applications as compared to Apple’s app store, which reviews every app).
  • Fake sites. Phishing sites on smartphones can be easily confused with the simplified, mobile version of a legitimate site. That makes it easier for scammers to get information. According to Alicia diVittorio, a Lookout mobile safety advocate, you are three times more likely to provide sensitive information to a malicious source on a smartphone than a PC or laptop.

Take extra care when storing password and downloading apps, especially Android users. While the open marketplace allows for a huge variety of apps, it’s also a lucrative target for scammers: over 13,000 malicious apps were found in the marketplace at the end of 2011.

If you believe that a malicious company has targeted your phone and stolen your money or identity, you have a right to seek justice for consumer protection.

Sarelson Law FirmMiami litigation attorney

 

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1.5 Million Credit Card Numbers Stolen

April 13th, 2012

A new data breach has resulted in the theft of information from as many as 1.5 million credit card accounts. Leading industry watchdogs have put out an alert for consumers to monitor their accounts for fraudulent purchases.

The breach was reported by Atlanta payment processor Global Payments Inc. According to the company, no consumer fraud has occurred as of April 2, but it has indicated that scammers stole both the credit card account numbers and expiration.

The breach occurred between the processing company and a New York City taxi and parking garage company. Global Payments identified the breach in early March, but the problem went undetected for several months before that. This means anyone who used his or her debit or credit card to pay for a cab in New York earlier this year could have had information stolen.

Because only the card numbers and expiration dates were stolen, it appears the breach will not involve identity theft. However, card owners should pay close attention to their credit card statements to detect any fraudulent purchases.

It is certainly upsetting to discover such a large breach in credit card security. Consumers must keep a constant eye on their statements. Scams are often only discovered after the fact, making personal vigilance the best prevention of fraud.

Sarelson Law Firm – Miami class action lawyers

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Guidelines for Avoiding Credit Card Fraud

April 11th, 2012

Many of us will become the victim of credit card fraud at one time or another during the course of our lives. While there is no way to completely prevent becoming the victim of a credit card scammer, there are some steps you can take to minimize your risk. The Federal Trade Commission (FTC) offers a list of things credit card users should and should not do to prevent fraud, including:

Do:

  • Sign the back of your credit cards.
  • Keep your cards separate from your wallet.
  • Keep a record of your account numbers, expiration dates and the phone number and address of each company in a secure place.
  • Pay attention to your card during a transaction and get it back as soon as possible.
  • Void incorrect receipts.
  • Destroy carbons.
  • Save your receipts and compare them with your billing statements.
  • Open bills as soon as possible and reconcile them with your monthly statements.
  • Report questionable charges in writing immediately.
  • Notify card companies in advance of a change of address.

Do Not:

  • Lend out your card.
  • Leave your cards or receipts lying around.
  • Sign a blank receipt. Always draw a line through any blank spaces above your signature.
  • Write your account number on the outside of an envelope or on a postcard.
  • Give out your account number over the phone unless you are speaking to a company you know is reputable.

If you follow the above guidelines, you will greatly reduce your risk of becoming a victim of fraud.

Sarelson Law Firm – Miami litigation lawyers

 

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