Prevent Credit Card Fraud

Credit card fraud can happen in a lot of different ways, but most of them are preventable if you follow a few basic steps to keep your physical cards safe as well as your personal information. You have significant rights as a credit card holder, and credit card companies offer the greatest fraud protection available – but you must take action to keep your information safe, and exercise your rights as soon as possible if you suspect unauthorized activity.[1]

Steps

Protecting Your Card

  1. Keep your cards in a safe location. Treat your credit cards the same as you would cash, and make sure you know where they are at all times.
    • You might also try carrying your cards separately from your wallet. That way if your wallet is stolen the thief doesn't have everything.[2]
  2. Alert your credit card company immediately if your card is lost or stolen. After you report your card lost or stolen, federal law states you no longer have any liability for further charges you didn't make.
    • Typically the company will cancel your card as soon as you report it; however, the credit card company legally can only hold you responsible for a maximum of $50 for each card that's lost or stolen, regardless of when you report it.
    • Most credit card companies have automated lines that are available 24 hours a day, seven days a week for reporting a lost or stolen card.[2]
    • If you're notified of a data security breach at a store where you've used your card, contact your credit card company and demand a replacement card be issued immediately.[3]
    • If your wallet is stolen, you should also contact local law enforcement and any other related companies or agencies. For example, if you had your health insurance card in your wallet, you should notify your health insurance company that your card was stolen so it can be replaced.[4]
  3. Leave your cards at home if you're not going to be using them. Especially if you're going on an extended trip, leaving cards you don't need at home substantially decreases the odds of them being lost or stolen.
    • Don't take anything with you that you don't need. For example, if you're going to the grocery store, bring along whatever method of payment you intend to use to buy your groceries. There's no need to bring your store card for a clothing retailer.[4]
  4. Notify your credit card company if you will be traveling overseas or far away, or if you are moving. Many credit card companies automatically block cards if suspicious activity occurs, which could include transactions in a place you didn't frequent before.
  5. Insist clerks check your signature and photo ID when you make credit card purchases. Checking ID allows the clerk to compare your signature on the receipt to your signature on your driver's license, as well as checking the name and photo.[4]
  6. Keep your eye on your card during transactions. Don't walk away or turn your back on a clerk or other employee who has your card in her hand.
    • If a clerk has a problem with the transaction, make sure she returns your card to you before she walks away.[2]
    • Never sign a blank receipt, and mark through any blank lines or spaces before you sign so nothing else can be added to your total after you've signed.[2]

Protecting Your Accounts

  1. Cut up or shred your cards when they expire or you close your account. Even an expired card can be used to open up a new account or re-open a closed account.
  2. Visually inspect ATM machines before using them. If you see glue, scuff marks, or other signs of tampering on the key pad or around the place where you insert your card, use a different machine.
    • Thieves attach devices called skimmers to take debit and credit card information. Although this is less likely in a high-traffic location, always take a few moments to look at a machine before you use it.[5]
  3. Don't check your finances online while you're in a public place. Open wi-fi connections make it easy for hackers to steal your data, as well as anyone who happens to be looking over your shoulder.
    • Wait to do your online banking until you are at home or have a secure wireless connection and some privacy.[6]
    • Change your passwords regularly and use complex combinations to better secure all your financial accounts.[3]
  4. Avoid writing down your PIN numbers on or near your cards. If you have a PIN for cash advances, memorize it rather than writing it down.
  5. Keep a record of all account numbers in a safe place. When you open a new account, write down the account number, passwords, PIN, or any other important information on a single document along with the website or phone number for reporting theft.
    • Update your document as needed and put it in a safe or other secure location along with other important identity documents such as your birth certificate and Social Security card.[2]
    • Don't write down account numbers, or print anything with your account number on it, and leave it lying around in plain sight. Keep all your paper records locked away and your digital records protected by passwords.[2]
    • You also could make copies of the front and back of your cards and keep those in a safe place so you have all identifying information about the account handy.[4]
  6. Give account information over the phone only if you made the phone call. If you made the phone call, you know who you're dealing with – otherwise, the caller may be misrepresenting himself so he can get your account number and use it.[2]
  7. Shred any documents that reference your account. After you've finished reviewing your account statement, shredding the document will prevent people from getting information off of it that they could use to open a new account.
  8. Check your receipts against your statements each month. Verifying amounts for each transaction helps you ensure that no fraudulent activity is occurring, and enables you to act quickly if you find something amiss.
    • Open your bills or check your account online at least once a month and reconcile your accounts with your receipts.[2]
    • If you find a questionable charge, call your credit card company immediately. Federal law gives you 60 days after the date the first bill was mailed to you with the questionable transaction to notify the credit card company. The credit card company must resolve the issue within two billing cycles.[7]
    • While a potentially fraudulent transaction is being investigated, your credit card company cannot restrict or close your account, report you as delinquent, or harm your credit rating.[7]

Protecting Your Identity

  1. Leave your Social Security card at home. Since your birthdate and your Social Security number are the key pieces of information used to start a new account or access an existing one, never carry your Social Security card in your wallet.
    • This includes other identifying documents such as your voter registration card or your birth certificate as well. Keep these documents locked up in a safe place – you don't need to carry them with you.[4]
  2. Avoid revealing personal information such as your Social Security number or your birthdate unless you initiated the communication. No one who contacts you needs this information. If someone claims to be from a company with which you already do business, contact the company yourself directly to confirm whether the communication was from them.
  3. Be wary of over-sharing on social networking sites or elsewhere online. Keep your personal information private, and avoid signing up on websites that ask for more information than is strictly required to open up your account.
    • For example, if a blog wants your name, address, birthdate, and Social Security number just to send you a weekly newsletter, it might be using your information for more than just a mailing list.[4]
  4. Review your credit report regularly. Your identifying information also can be used to open up new credit accounts in your name, so you should review your reports regularly and dispute any unauthorized activity.[3]
    • If your card or account information is compromised in a store hack or data breach, you can use a security freeze to lock down your credit report. If the hacker tries to apply for a new loan or credit card, the would-be lender won't be able to see your report, which means they probably won't open a new line of credit.[3]
  5. Shred all documents that contain personal information. Destroy anything with personal information on it before you throw it away, even if it only contains your name and address. You don't want to give would-be identity thieves even a small piece of the puzzle.
  6. Report phishing scams immediately. Any unsolicited communication could be a possible phishing attempt from thieves attempting to commit fraud.
    • If you have any questions at all, contact your bank or credit card company directly using the customer service number on the back of your card.[8]

Related Articles

Sources and Citations

  1. ↑ http://www.bankrate.com/finance/credit-cards/5-ways-fall-victim-credit-card-fraud-5.aspx
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 http://www.consumer.ftc.gov/articles/0216-protecting-against-credit-card-fraud
  3. ↑ 3.0 3.1 3.2 3.3 http://www.consumerreports.org/cro/news/2014/09/protect-against-credit-card-fraud-now/index.htm
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 http://www.experian.com/credit-education/fraud-prevention.html
  5. ↑ http://www.bankrate.com/finance/credit-cards/5-ways-fall-victim-credit-card-fraud-2.aspx
  6. ↑ http://www.bankrate.com/finance/credit-cards/5-ways-fall-victim-credit-card-fraud-3.aspx
  7. ↑ 7.0 7.1 http://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges
  8. ↑ http://www.bankrate.com/finance/credit-cards/5-ways-fall-victim-credit-card-fraud-4.aspx
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