Wink Capital Discusses Credit Card Fraud

Many people would say that it is the older generation that falls for scams, but this is not only about scams. Fraud is something that happens to several individuals and companies. There is no mistake how many times loss prevention must deal with actual loss. Fraud is not only for companies like we hear, millennials are being hit hard as well and the reason is because of how dependent the world has become on technology. We trust technology. Let’s dig a little deeper on this top as to why millennials have already experienced credit card fraud.

Who are considered millennials?

One thing to understand is who are considered millennials? These are the years between 1981-1996, which are the 22-38 years old individuals. Understandably, these are the children of the Y2k era, but also saw coloured TV. Witnessed floppy disks to advancing to flash drives. Unfortunately, the millennial era has produced some of the most genius individuals that are able to “get what they want”. The scary thought is a the same all around the world. Not everyone is safe, there are ways to be educated about frauds.

Technology driven

Wink capital contributes another reason for the rise in millennials being more prone to fraud is because of how technology is shaped now. Not many know that there is a device for wireless vehicles that allows a car to be unlocked and the items or car to be stolen. If this happens, all personal information within that car is in the hands of someone else. And it mainly happens when at work or when a work computer is left in the vehicle because it’s a “safe neighborhood.”

Items tend to be left in the confines of a vehicle because it’s easier to not worry about one more thing when gathering everything when rushing for work. Now, the parents or single parents experiencing this have it a little bit harder because the brain is focused on household and dinner when work has commenced. So, how does this tie in with why 33% of millennials have experienced credit card fraud? Sadly simple.

Tech Savvy, but not credit card savvy

Economics classes taught many children about how to write checks, dinner etiquette, spending habits, and how to manage a budget. The credit card portion was left out. There is not pity party, because Google is always accessible, but several parents sent their children out into the world without proper knowledge about credit cards. For instance, there are parents who believe they are doing goo and will apply for credit cards on their child’s behalf. When this is done and the card is given to the 18+ teen, there are no other guidelines. A credit card was just placed in their hands with no restrictions. So, to be thought.

What the FTC says

Wink Capital, a leading debt consolidating company most inclined to deflect and prevent financial shortcomings, studies from the FTC (Federal Trade Commission) shows that millennials have lost a significant amount of money due to fraudulent charges. This is a statistic that is a first with an entire generation. The reported frauds show that about 20% of reports lost their money because their report was not resolved.

When put into perspective of older generations and fraud, there is only 18% in the 70 and older age group that loss money due to fraud. Only 18% is still close to millennial stance, but that lets us know that technology and the driving forces are gaining more knowledge on how to commit fraud.

According the FTC 2017 report there were more than 1.1 million fraudulent reports made. All the reports to the FTC are individually tracked and connected to identity theft. There are more fraud types beside identity theft. There are impostor scams which are identified by something posing as another in exchange for money. This includes emails that state they are a commissioner of Nigeria. Fraud roto calls that ask for your personal indemnification information before they say why the call was initiated in the first place. There are sweepstakes and lottery scams. Lastly, catalog and shop-at-home scams.

The most notorious scam involves traveling. Millennials are loving the freedom of being able to travel. With different sites stating they can give you this gateway package for a low cost to this timeshare will only cost you this much. Foreign money scams are big because of the ability to reprint money in home. Scammers are able to get into an airlines database and take card information or they call the flyer and say we have to re-book your flight or seat. This scam caused travelers and the flight industry to loss an average of $1000 per booking. That’s over millions of dollars and the millennial era took the hardest hit.

There is an annual Consumer Data Book that is released every March. Majority of fraud reports are doing via contact the agency or completing an online submission form. Complaints fill up the Better Business Bureaus site with complaints and complaints are high for the popular sweepstakes company Publishers Clearing House. The PCH company deals with thousands of scamming reports annually. The biggest victims are millennials because after college, there are not suitable jobs to take care of living expenses. It is easier to hope and pray on a lottery ticket or a sweepstakes.

Criminals victimize millennials on credit card frauds because all it takes is a simple card reader set up and all their information is taken. There are even devices that have been mentioned in the news that allow a scammer to walk near someone who has a wallet in their back pocket or purse and scan their card information without touch them. According to the FTC, 40% of identity theft is reported by individuals between 20 and 29 years old.

The reason why 33% of Millennials Have Experienced Credit Card Fraud is because cards are applied for frequently and the internet can capture all personal information. The internet is the biggest breeding ground for scammers and hackers. Although, there is protection for identity and cards, majority probably feel that there isn’t enough extra money to use for the extra protection