Your Best Defense Against Credit Card Fraud? Is You!
Once a credit card account is opened, we have very little defense against loss. Loss figures on the misuse of credit cards is expected to top a whopping one billion dollars in 1989. It's the banking industry's third largest cause of losses.
One of the ways we can protect ourselves is to revamp the way we take and review credit applications.
Look for obvious signs...
An "impossible" social security number. For example, one that was issued before the person sitting in front of you was born! (We will discuss this technique in a later issue.)
A person applying for a credit card, when your records show that they already have a credit card with you. When questioned, the applicant (who may be an imposter) may say, "Oh, I forgot!", and will probably exit quickly!
All brand new identification, as if recently acquired.
Just as when you are opening accounts, you need to ask questions.
Your first line of defense against credit card fraud is in the application review.
Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 1, 1/90
First published on 01/01/1990