Prepaid Cards May Get Added Fraud Protections

Swipe a debit or credit card and all sorts of consumer protections are in place in case something goes awry. With a prepaid card, not so much. That may soon end. The Consumer Financial Protection Bureau is proposing to extend many of the consumer rights that exist for credit and debit cards to prepaid products, such as limiting customers’ losses if their prepaid cards are lost or stolen. >> 10 Consumer Spending Regrets “People use prepaid accounts as a convenient way …

Is a Credit Freeze for You?

To freeze or not to freeze? It’s a common question, particularly after reports of yet another breach of payment card data like those at Home Depot, Kmart and Dairy Queen. The answer: Probably yes — but not because of those kinds of breaches. Certainly a credit freeze (also known as a security freeze) is a great way to proactively prevent identity theft and is advised for past victims of this crime who are likely to be targeted again. But it’s not foolproof and, …

AARP Finds ID Theft Higher Than Believed, Simple Preventions Ignored

New research by the AARP Fraud Watch Network finds that identity theft may be occurring at twice the rate previously believed, and the reason may be simple: Many Americans continue to ignore simple, everyday, low-tech steps that have been proved to help protect their personal and financial information, such as locking mailboxes, removing ID theft-worthy items from unattended parked cars and regularly shredding sensitive documents before disposing of them. Many also fail to take other easy measures, including securing smartphones and regularly changing …

Regulator Seeks Greater Oversight of Auto Financing

The Consumer Financial Protection Bureau wants to extend its oversight to large nonbank auto-finance companies to make sure they are not discriminating against consumers. The CFPB announced today its proposed rule to expand its supervision to these companies, which would include the finance arms of auto manufacturers. “Nonbank auto-finance companies extend hundreds of billions of dollars in credit to American consumers, yet they have never been supervised at the federal level,” CFPB Director Richard Cordray said in a statement. “Today’s proposal …

Don’t Become a Credit ‘Mule’

Cash-desperate consumers are being lured into becoming unwitting “credit mules” via a cellphone scam, the Federal Trade Commission warns. Con artists pay targets a couple hundred dollars to sign up for wireless contracts for iPhones and other mobile devices, the FTC says. The consumers then turn over the smartphones to the scammers, who “unlock” the phones so they can be used by others. The phones then are often sold overseas, where they can fetch from $500 to $1,000 apiece, says Nat …