How to Avoid Credit Card Fraud

Credit card fraud is on the rise and we must all be vigilant to protect ourselves.  Here are some of the methods used by criminals to commit credit card fraud:

The actual theft of your credit card(s), usually with your wallet and all other valuable contents.  In this case, you usually know and report stolen cards immediately, giving the thieves less time to incur charges on your accounts, making more devious methods more attractive. 

Thieves look through your trash to find receipts containing your credit card account numbers.  Today, most receipt will only show the last few digits of your card number, but you must still be careful.  

Clerks in a store where you make a purchase with your credit card may make a copy of your name and account number for their own use -- or they sell it to others. 

Fraudulent phone sales with tempting offers or charitable donation solicitations, asking for your payment by credit card.  They get all the information they need to use your card for their own purchases -- and you will never receive the merchandise offered. 

Here are some simple, common-sense steps you can take to greatly reduce your exposure to criminals trying to use your credit cards fraudulently:

• Sign your credit or charge cards as soon as you receive them.
• Keep your credit or charge cards in a separate card holder.  Do not keep them in your wallet.
• Men should carry the card holder in a pocket that is difficult for pickpockets to reach.  Ladies should always zip up their purse and hold on to it while shopping or in any public place.  Backpack style purses are an invitation to pickpockets.
• See our article on "Lost or Stolen ATM and Credit Cards" to be informed on the rules for notifying the issuers if your card(s) is stolen or lost. 
• Advise your credit card companies ahead of time if you will be traveling or changing address.
• Keep records or receipts of credit card purchases in a safe place to verify against your statement.  Notify the card issuer immediately to dispute any fraudulent charges and request that a new account be opened.  
• Shred any receipts or old credit card statements before throwing in the trash.  It is well worth the low cost of a basic shredder to protect yourself.
• Credit card companies now send you "checks" to use against your card.  This is to encourage you to incur more charges on their card and are often subject to finance charges, even if you pay your bill in full and on time.  It is better to shred these immediately since they contain your credit card number.
• Be careful with clerks at small stores and gas stations.  Be aware of your surroundings and, if in doubt, avoid making credit card transactions with the clerk. 
• Never give your credit card information for an unsolicited phone sales offer or request for donations.  Any legitimate business will understand if you say, "I have a rule to not give my credit card information over the phone."  Ask them to send you the information by mail.  If they get upset, it's probably a scam.
• Never sign a blank credit card receipt for any reason.
• Never lend your card to another person. 

If you follow these cautionary steps, you will not be a good target for credit card fraud and will greatly reduce the chances of having problems.