BBB Warns: College Kids At Risk of 'Friendly Fraud'

8/26/2011

Bookmark & Share
  • MySpace
  • Digg
  • Delicious
  • StumbleUpon

Media contact: Janet C. Hart, APR, CFEE (704) 927-8617 office

Identity Theft by Roommates and Friends Is A Growing Trend

CHARLOTTE, N.C. – Over the next few weeks, thousands of young people across our area will be leaving home for college.

As these teenagers transition to independent living, they need to be well-versed in financial literacy. College students are most susceptible to identity theft by friends and roommates, known as ‘friendly fraud’.

According to the 2010 Identity Fraud Survey Report released by Javelin Strategy and Research, more than 11 million people became victims of identity theft in 2009.

Young adults, ages 18 to 24, take 132 days on average to detect identity theft. Subsequently, the average cost of victims in this age group was $1,156, which is roughly five times more than the average amount lost by other age groups.

“Parents should discuss financial responsibility and scams with their college kids before sending them off to school,” said BBB President Tom Bartholomy.

“Developing good money management skills early can have life-long benefits.”

The BBB has 10 tips for how college kids can safely handle financial decision-making.

  1. Secure your mail. Dorm mailboxes are not always secure so you should have sensitive mail sent to your home address or to a P.O. Box. 
  2. Lock up and shred. Important documents should be stored in a locked drawer or filing cabinet and you should shred any financial statements rather than throwing them in the trash.
  3. Avoid providing your Social Security number. If you are required to provide your Social Security number, be mindful of people close by who could overhear it or see it.
  4. Protect your computer.  Make sure your computer is password protected and has up-to-date antivirus software. Use strong passwords that cannot be easily guessed and be careful about clicking on links and opening attachments from unfamiliar sources.
  5. Be vigilant. Check your credit or debit card statements closely for any suspicious charges or set up text alerts for activity on your account.
  6. Shop safely.  When shopping online, be sure the website is secure and encrypted. Never pay by Moneygram or Western Union as these are red flags for scams.
  7. Monitor your credit. Check your credit report at least once a year with all three credit bureaus. You can do this for free by visiting www.annualcreditreport.com.
  8. Be responsible with credit cards - Pre-approved credit card offers are tempting, but they could lead to financial trouble.
  9. Pay your bills on time. Late payments can lead to interest rate increases, reductions in available credit, negative marks on your credit report and a lower credit score.
  10. Just say NO. Never loan your credit card or debit card, or co-sign a loan, for your friends.  
For more information, please visit www.bbb.org.

###


Average Rating | Rate It

z