Credit card scam artists have hit a new low in acquiring important information about their victims, security experts say. While credit card fraud has remained a largely lucrative trade, many identity thefts have stuck to victimizing ordinary American cardholders and consumers. According to many credit industry specialists, however, scam artists have resorted to stealing important data from the recently deceased.
The sudden increase in the reported use of deceased cardholders’ data has prompted many security specialists and credit experts to renew calls for vigilance among consumers and the relatives of the recently deceased. According to sources who are aware of the illegal practice, scam artists would often search for their victims’ social security numbers and use these to open new accounts in their name. Most banks and card issuers usually give applicants new cards if they are able to verify their identity using identification methods like social security numbers. Scam artists can also get other useful information from consumers’ social networking sites on the internet.
According to a 2009 study conducted by a leading research firm, the number of American consumers who became victims to identity theft has risen dramatically to 9.9 million, an increase of 22 percent. The total amount loss to identity theft has is estimated at $48 billion in this year alone. A similar study done by a different research company found out that of the many forms of identity theft, credit card fraud is the most prevalent. On average, cardholders lose $929 for every card theft and fraud. The chances of a scam artist getting caught and convicted are a mere 5 percent.
Specialists say that the low conviction rate has only emboldened many identity and card thefts. With the federal government almost helpless when it comes to finding solutions to these problems, the danger of card fraud poses a real threat to many American consumers.
Investigators who specialize in monitoring and tracking down perpetrators say that the deceased’s families are partly to blame for the new practice being used by many scam artists. They point out that many relatives often hesitate and even fail to inform card companies and concerned federal agencies about their deceased. This has made it easier for identity thefts to access databases like the Social Security Death Index and browse for their intended victims’ social security numbers. With this crucial data in tow, scam artists can easily open new accounts using the recently deceased’s name and personal data.