Credit Card Companies Are Capitalizing On Growing Identity Theft Problem
By Taylor Harward
Identity theft has become such a problem that major credit card companies are implementing a monthly fee, not to prevent identity theft, but to ensure reimbursement after it occurs. The usury trend in recent years has been to repair the effects of identity theft as a complimentary service. But with the dramatic increase in the number of identity crimes, companies are revising their policies to where they only take action if the customer retains the responsive (as opposed to preventative) service for ten to twenty dollars per month.
Interest fees, service fees, late fees, processing fees, transfer fees and "over the limit" fees already inconvenience card holders. Adding an identity theft fee for the price of a gym membership or satellite radio is an insult to the holders, especially because the organization itself has a responsibility to watch out for its members. Companies that require such a fee are taking advantage of collective criminal success, and in doing so, they are taking advantage of the their own customers.
Credit card holders should not feel like they have to pay for something that does nothing to protect them from criminals. Individuals taking it upon themselves to secure their own financial information is the best way to combat identity theft. Everyone should keep meticulous records, closely monitor their various spending accounts and emphatically destroy anything containing personal information; this means documents, receipts or balance slips, the credit cards themselves, CDs, and DVDs. Paper shredders are more advanced than they once were, and are frequently used to make more than just paper completely unsalvageable.
If someone's credit card information is stolen, the carrier's credit card company will most likely apply some kind of recovery fee or increase the member's interest rate once the account is restored, even if it was in no way the member's fault. Though representatives for the cards might make the procedure of rebuilding a stolen identity seem painless, it is always a hassle for the victim. A high-capacity paper shredder solves a problem before it ever starts, and nothing is more helpful to a victim than never becoming a victim in the first place.
Taylor Harward is among the foremost authorities on business financial efficiency.