Protecting Yourself Against Credit Card Fraud.

When we think of crime, most of us feel that the streets are getting more and more dangerous but our home is still our castle. Regretably this isn't always the case. Identity theft can touch anybody, regardless of the neighbourhood you live in, as the previous post pointed out. So in this post we're going to share with you some ideas for keeping thieves away from your credit card accounts.

First off, how does credit card theft take place? A thief goes through trash to find discarded receipts or carbons, and then uses your account numbers illegally. A dishonest clerk makes an extra imprint from your credit or charge card and uses it to make personal charges. You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip.

Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge. It's not always possible to prevent credit card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.

Here are some tips to help protect yourself from credit and charge card fraud.

DO:

Sign your cards as soon as they arrive. IF YOU DON'T AND YOUR CARDS ARE STOLEN, YOU WILL BE LIABLE FOR ALL CHARGES BECAUSE YOU VOIDED THE CREDIT CARD AGREEMENT BY NOT SIGNING THE BACK OF YOUR CARD!!!!! Tricky how these credit card companies work...

Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place. This way if your cards are stolen you'll know which credit card companies to call and the account numbers to cancel.

Keep an eye on your card during the transaction, and get it back as quickly as possible.

Void incorrect receipts.

Destroy carbons.

Save receipts to compare with billing statements.

Open bills promptly and reconcile accounts monthly, just as you would your checking account.

Report any questionable charges promptly and in writing to the card issuer.

Notify card companies in advance of a change in address. That way when you move there is no lag time where your bills are sent to your old address, thus offering the new tenants an opportunity to commit fraud at your expense.

DON'T

Lend your card(s) to anyone.

Leave cards or receipts lying around.

Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.

Write your account number on a postcard or the outside of an envelope.

Give out your account number over the phone unless you're making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.

Reporting Losses and Fraud: If you lose your credit or charge cards or if you realize they've been lost or stolen, immediately call the issuer(s).
Many companies have toll-free numbers and 24-hour service to deal with such emergencies. By law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.