Getting the Full Picture on Fraud

While cases of online fraud have been showcased in the media spotlight, the fear of online shopping is just one small piece of the fraud puzzle.

In fact, you may have more to fear from the waiter who disappears with your credit card, or the workers who are remodeling your kitchen, then some faraway hackers compiling databases of consumer information.

Online Safer than Paper

A recent study by the Better Business Bureau states that you are more likely to be ripped off by old-fashioned dumpster divers, telephone scammers, or worse, by someone you know, than by high tech operators.

The Federal Trade Commission estimates that 3.2 million are victims of ID theft each year, with no signs of abating. But despite the dire predictions of consumer rights organizations, Internet fraud accounts for a small percentage of fraud overall.

Additionally, the study found, consumers who were victims of “paper” fraud had greater financial losses than those who suffered at the hands of computer hackers. The average loss suffered by electronic fraud victims was $551, compared to the $4,543 lost to non-electronic cons.

Familiar Thieves Most Common

According to the study, the most common source of information used in fraud comes from a lost wallet or checkbook. Half of all identity fraud is committed by a family member or relative, a friend or a neighbor, an in-home employee or someone in the workplace. For small business owners, fraud most often comes in the guise of someone at the company with access to personal information.

For more information about identity theft by someone you know.

The good news is that consumers who conduct electronic financial transactions spot fraud much more quickly than those who wait for monthly paper statements to come in the mail.

Protect Yourself Against Low-tech Fraud

Here are a few tips to protect you against low-tech fraud:

• Prevent access to your personal information.
• Replace paper bills, statements and checks with Internet (paperless) versions.
• Consider moving to an electronic bill payment service, such as Wachovia's Online BillPay, and stop sending signed paper checks through the mail.
• Before discarding, shred all private documents.
• Keep passwords hidden (even in your own home) and change them frequently.
• Don't release Social Security or account numbers, particularly to those requesting such information by e-mail or phone.
• Review your credit report at least once a year. You are entitled to one free yearly report from all three bureaus: Equifax, Experian and TransUnion.