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Consumers fear fraud, but are not doing enough to protect themselves |
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Merchants - reduce fraud losses and increase consumer confidence with Paymentech's fraud detection services. |
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Americans are very concerned about someone obtaining their credit, debit or check card numbers, and with good
reason. But new fraud-protection services offered by Paymentech are helping to decrease the incidence of identity theft and
credit card fraud.
According to a recent Paymentech survey, almost half the population is more concerned about someone obtaining their credit,
check or debit numbers than about losing their car keys, checkbook, appointment book, cell phone or even having someone hack
into their computer files. Yet 35 percent of those polled said they are "just a little" or "not at all" concerned that many
receipts expose entire account numbers and expiration dates.
"Consumers need to be diligent about checking their receipts," said John Shirey, eBusiness Group Manager, Product Development
Paymentech. "In today's world, discarding receipts that have valuable information on them greatly increases the risk of credit
card fraud."
Paymentech, the nation's premier processor and acquirer of credit card transactions and provider of fraud-prevention software,
recently commissioned a survey asking 800 adults about their concerns regarding personal loss from credit card fraud. Here are
the results:
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Responses showed 46 percent of Americans said they are most concerned about someone obtaining the
numbers of their credit, debit or check card, followed by fourteen percent - losing the keys to their car, 12 percent
- losing their checkbook, six percent - someone tapping into their computer files, three percent - losing their
personal planner or appointment book and two percent - losing their cell phone. |
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On those occasions where consumers do not keep the receipt from a credit card purchase, 33 percent
throw the receipt away after tearing or shredding it, 13 percent throw the receipt away without tearing or shredding
it, 13 percent leave it in the bag they got with the purchase, two percent leave it with the clerk, store or
restaurant, and 24 percent never throw away any receipts. |
"The fact that there is such a large percentage of people who simply toss receipts away without tearing them up first is
alarming," said Shirey. "Would-be thieves can easily find receipts with valid account numbers in trash cans and ashtrays at
restaurants, gas stations and retail locations. Once they obtain these numbers, they can go on a shopping spree courtesy of
the unsuspecting consumer."
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When informed that some receipts expose the entire series of sixteen card numbers and expiration
dates used to make the purchase, more than half of the respondents expressed concern. Thirty-six percent said that
they are very concerned, 21 percent said that they are somewhat concerned, 14 percent said they are just a little
concerned and 21 percent said that they are not concerned at all. |
"It is encouraging to see that Americans are concerned about fraud, but there is still a lot of work to be done to further
educate consumers and to encourage them to take better care of personal information," says Shirey. "Receipts that expose
entire account numbers and expiration dates are a license to shop if they end up in the wrong hands."
According to Paymentech, there are a variety of low tech and high tech tools that merchants can utilize to reduce their risk
of fraud and protect their customers from unnecessary fraud exposure at their establishments.
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AVS - Address verification is a simple tool, which allows merchants to verify that a transaction is
legitimate by confirming the billing, address fro the credit card. |
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Electronic Fraud Detection - Paymentech's electronic fraud detection service offers a more
sophisticated solution. This service stops illegal transaction from being completed by scoring each transaction
according to factors within the transaction that could prove to be fraudulent. If a transaction's score indicates a
possible fraud, merchants do not have to loose the sale. Instead the merchant may take steps to further verify the
transaction and ensure the credit card transaction is legitimate. |
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Secure Receipts - Paymentech is already compliant with litigation requiring that credit and debit
card receipts block all but the last five numbers and the expiration date. Blocking such detailed information on
receipts can prevent identity theft from thief finding lost receipts. |
Merchants can use a variety of systems offered by Paymentech including address verification, card validation using the
card's numeric code, real-time fraud scoring and the verification of the cardholder's identity using passwords, chip cards
and digital certificates. When an illegal transaction is stopped, merchants save money and consumers are saved the hassle
of cleaning up damage done to their account. Also, those attempting fraudulent transactions are significantly less likely
to attempt additional transactions with the same account once a transaction has been prevented.
"We feel an obligation to help keep consumers informed about credit card fraud," said Mike Duffy, President and CEO of
Paymentech. "Additionally, we strive to provide the thousands of merchants we serve with the tools they need to run their
businesses effectively and efficiently. We must take credit card fraud very seriously, as it costs consumers and merchants
billions of dollars each year."
About the Survey
The polling companyTM added three questions to a nationwide omnibus survey of 800 adults. The survey was fielded
February 27-28, 2002 at a Computer Assisted Telephone Interviewing (CATI) phone facility.
The margin of error is calculated at +3.5% at the 95% confidence level, meaning that the results obtained would differ by no
more than three percentage points in either direction even if the entire population nationwide were to be surveyed.
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Fast Facts
(Visit www.ftc.gov for more information)
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Identity theft was the number one consumer complaint logged in 2001 by the Federal Trade Commission. |
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The FTC estimates that more than 750,000 people a year are victims of identity theft. |
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More than anything else, experts say that the ease with which criminals can get vital information
was the leading factor in the explosion of identity theft. |
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The FTC estimates that it takes 127 hours on average to repair damage done by identity theft criminals,
and it is the victim's responsibility to clean up the mess. |
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Ways to Protect Yourself
(Visit www.ftc.gov for more information)
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Keep items with personal information in a safe place; tear them up when you don't need them anymore.
Make sure merchant receipts, copies of credit applications, insurance forms, bank checks and statements, expired
credit cards and credit offers you get in the mail are disposed of appropriately. |
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Pay attention to your billing cycles. Follow up with creditors if bills do not arrive on time. |
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Order a copy of your credit report from the three credit reporting agencies every year. Make sure
it's accurate and includes only those activities you've authorized. |
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Make sure you get all your merchant receipts back. |
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Minimize the identification information and the number of cards you carry to what you actually need.
If your ID or credit cards are lost or stolen, notify the creditors by phone immediately, and call the credit bureaus
to ask that a "fraud alert" be placed in your file. |
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