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

8/13/2010

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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 begin to transition from home to college, they need to be well-versed in financial literacy.  Because college students are so susceptible to identity theft by friends and roommates, The Better Business Bureau recommends that they take simple steps to protect themselves from “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, aged 18-24, took the longest to detect identity theft—132 days on average—when compared to other age groups. Subsequently, the average cost ($1,156) was roughly five times more than the amount lost by other age groups.

“Young adults who establish good habits for monitoring and detecting fraud are laying a foundation that will benefit them for the rest of their lives,” said BBB President Tom Bartholomy.

The BBB has the following tips for how college kids can safely enter the new world of financial decision-making and handle the responsibilities and consequences that come with it:

  • Secure your mail. Dorm mailboxes are not always secure and can often be easily accessed. To combat sticky fingers in the mailroom, you should have sensitive mail sent to a permanent address such as your home or a P.O. Box.
  • 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.
  • Just say no to friends. Never loan your credit card or debit card to anyone or co-sign a loan for your friends.  Never.
  • Protect your computer.  Make sure your computer has up-to-date antivirus and spyware software.
  • Be vigilant. Always check your credit or debit card statements closely for any suspicious activity.
  • Shop safely.  When shopping online, be sure the website is secure and encrypted before you make a purchase.  Never pay by Moneygram or Western Union – these are two of the biggest red flags for scams.
  • 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.
  • Be responsible with credit cards - Two out of three college students have a credit card. While having a credit card is an important first step in building a credit history, you should use credit wisely, especially when it comes to pre-approved credit card offers.
  • 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 FICO credit score.
  • Safeguard your identity - Do not allow anyone to have access to your personal information such as your social security number, driver’s license, passport, bank account information and credit cards.

For more information, please visit www.bbb.org.

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