Fighting fraud


New security measures, tips from professionals help students keep their dough


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Photo Illustration by Taryn Wattles | Assistant Photo Editor New credit cards implemented with tracking chips will make it much more difficult to get away with credit card fraud, though students should still be aware of where and how they use their cards.

Trevariana Mason almost lost $500 after someone stole her debit card information. As with many cases of stolen identities and bank information, the Saginaw senior had no idea who had done it or where they got her information – the person using her card was tracked all the way to New York.

Stories like Mason’s are common for college students with large pools of federal financial aid and heavy spending habits.

Because of this, college students need to remain on top of their spending activity, said Dan Shanahan, manager of the Independent Bank branch located in the Bovee University Center. He said he has not seen an increase in fraud activity over the past four years, but the bank does see this happen to a lot of younger people who do a fair amount of online shopping.

“I would limit online shopping as much as possible,” Shanahan said. “Then be very careful when you’re checking out at places and at ATMs.”

With certain banks, students can access tools like text message alerts, online and mobile banking options that monitor money use, as well as take note of any odd or unusual behavior with their debit or credit cards. Any suspicious activity should be reported immediately.

“We can shut your debit card off right away,” Shanahan said. “We put the money back into your account right away, and then we go through an investigation process and take care of it on our end.”

Shanahan explained there are a number of ways thieves can gain access to consumers’ card information. He said some advanced fraudsters will have machines that will imprint the numbers onto a separate card, sometimes modifying the logo on the card, and they can even create magnetic strips on new cards.

When someone takes a card number, Shanahan said, what typically occurs is an increase in online shopping on that person’s account – and is usually the first sign that your information was stolen.

While Shanahan hasn’t seen a recent flood of student-focused fraud, news stories on the mass collection of credit and debit card data at retail stores have brought the fraud conversation back into the national spotlight.

Amber Loomis, a finance instructor and university budget analyst, attributes the spike in credit and debit card fraud to the U.S. lagging behind in fraud protection technology. She said in October 2015, there will begin a new emphasis on creating enhanced security credit cards.

A joint effort between Europay, MasterCard and Visa called EMV, Loomis said, is a relatively new system in which a chip is embedded into the card. This offers a more dynamic and advanced method of encryption.

She said Europe has had this system for a while, but it is still very new in the U.S.

“What’s going to happen is it’s going to essentially prohibit completely the ability to intercept transactions or the ability to duplicate credit cards,” Loomis said. “That’s going to significantly tighten the security on credit cards.”

Loomis echoed Shanahan’s advice on remaining vigilant and attentive to bank statements and account activity on a regular basis. She also said not to give credit card numbers out over the phone or to shady Internet sites.

Mason said although she was very confused as to how this could have happened to her, this has definitely made her more aware of where she uses her debit card, including which stores she shops.

It also made her appreciate her bank’s anti-fraud options a lot more.

The bank was really nice,” she said. “They made sure everything was taken care of.”

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