Thieves and Con Artists Are Doing Holiday Shopping Too--for Victims

When Laura recently got a call from a man asking if she would like to support the Police Officers’ Auxiliary Fund, she said she would.

“We’ll send someone right up to pick up your check,” the caller said.

Sensing a scam, Laura immediately called the police, who waited until the “charity’s representative” took her check, then promptly arrested him.

Laura knew that at this time of year, scams involving people posing as police or firefighters, or as representatives of a variety of sound-alike “charities,” abound.

‘Tis the season to be wary.

As the holiday season ramps up, thieves and con artists go into high gear. There are hundreds of people in malls and airports who might be just busy and distracted enough to become careless about watching their wallets or purses and about where they leave or how they use their credit cards. And in the season of giving, people are more apt to donate to a cause that sounds worthwhile, regardless of how much--or how little--they know about it.

To protect your property and to see that you don’t become a victim of a theft or a fraud, here are a few tips to keep in mind:

* Protect access to your phone card account.

Thieves don’t need to take your wallet to steal access to your phone card account; all they need is a number. If you are making a credit card call from a public phone, realize that someone may be watching you. When punching in the card number on the telephone keypad, try to stand in front of the phone to make it more difficult for someone else to see. If you read your card number to an operator, make an effort to determine whether you could be overheard. Some phone companies, including AT&T;, allow you to restrict international calling on your phone card. Stolen cards are often used for international calls, so you might want to block international access on your calling card if you would have no reason to be placing calls to foreign countries.

* Be wary of credit offers out of the blue, from companies you’ve never heard of.

Mail in the fee with the enclosed application and you could get a credit card with a low rate and a high spending limit--just in time for holiday shopping, one offer promises. Or a telemarketer calls offering a credit card over the phone. The consumer just needs to give the telemarketer all his personal information--the numbers and limits of his other credit cards and his Social Security number--so his application can be processed.

Both are hallmarks of scams designed to bilk the consumer out of a fee--or worse. In the second example, the consumer could very well be setting himself up for identity fraud, in which a con artist uses a victim’s personal information to apply for credit cards in the victim’s name. The con artist then runs up thousands of dollars in charges and leaves the victim to sort out the mess. The key is that you want to be certain of whom you’re dealing with and to be wary of giving out personal information of any kind over the phone.

* Guard your wallet and your credit and debit cards.

When you’re distracted by the bustle of holiday shopping, it can be difficult to remember simple tasks such as reclaiming your credit card after a purchase or watching the whereabouts of your wallet. Prepare yourself for the possibility of your cards getting lost or stolen, by keeping a list of the cards you carry and the number to call if they do become lost or stolen.

Many bank ATM cards are also debit cards, which means they can be used with nothing more than a signature at retailers, restaurants and many other businesses. If your ATM card has a MasterCard or Visa logo, realize that a thief could use it to clean out your bank account. Watch it as carefully as you watch your cash. If it becomes lost or stolen, report it immediately and consider closing the bank account.

* Be wary of unfamiliar charities.

The “Police Officers’ Auxiliary Fund” Laura encountered is one variety of the dozens of bogus “philanthropic” organizations nationwide that typically emerge during the holidays. These schemes can be hard to detect because many fake charities take on names that so closely resemble real charities that even cautious consumers can be taken in. Some experts advise, therefore, that consumers choose just a handful of causes to support, that they investigate the groups they may be interested in supporting, and then confine their giving to these few groups known to be legitimate and worthwhile.

If you want to give to a new charity, however, be aware of the signs that can indicate you may be dealing with a fraud. The red flags:

* The organization claims you have given to it before, but you don’t recall the charity.

* They offer to come pick up your check.

* They say they plan to give you a “gift” for contributing to their cause.

* They refuse to mail you information about the organization.

* The caller acts confused or reluctant when asked to provide you with a charity information card. These cards, which are legally required of charitable organizations, spell out how much of donated money goes to supporting charitable activities and what portion goes to fund-raising. If you intend to give a substantial amount, request a copy of the charity’s most recent annual report, which will provide more information about who is operating the group and what it does.

If you want to check out a charity, there are two organizations that can help--the Philanthropic Advisory Service, which is a division of the Council of Better Business Bureaus, at (703) 276-0100; and the American Institute of Philanthropy, at (301) 913-5200.

Here’s wishing you and yours a happy, healthy and prosperous holiday season.

Kathy M. Kristof is a syndicated financial columnist and author of “Kathy Kristof’s Complete Book of Dollars and Sense.” Write to her in care of Personal Finance, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053, or e-mail [email protected]