Credit Card Fraud and Security

Protect your information at all times

While credit cards can be a very convenient and safe way to pay for transactions without carrying cash, they can also be a nightmare if they fall into the wrong hands. This is why it’s extremely important to make sure your transactions are performed securely and to make sure you know where your cards are at all times.

If your credit card is lost or stolen make sure you report it to the credit card issuing company as quickly as possible to cancel it. Most companies have toll-free telephone numbers and 24-hour operators to deal with these instances. It’s also a good idea to send the issuer a letter that includes your account number, when the card went missing, and the date you reported its disappearance. If you report the loss of the card before it’s used again you will be protected by law as the card issuer can’t hold you responsible for any unauthorized charges above a total amount of $50 per credit card.

However, your credit card doesn’t have to be physically missing for it to be stolen these days, as computer hackers and thieves often steal people’s identities and banking records. Somebody can use your card illegally if they have all of its information such as the number, expiry date, name and security code. If the loss involves your credit card number, but not the card itself, you still have no liability for unauthorized use. In fact, it doesn’t take a genius to steal your credit card information as all it takes is a receipt sometimes. This is why it’s imperative that you keep track of all purchases made with your credit card. Make sure you review your monthly billing statements very carefully. If you spot any unauthorized transactions, make sure you contact the card issuer.

You also need to be careful when throwing out any credit card and banking records as many thieves dig through garbage dumps looking for important financial information. The best thing to do with unwanted receipts and records is to shred them.

Credit card companies have tried to combat the illegal use of cards by implementing a three- or four-digit security number on the back of the card. If somebody is trying to make a purchase with your card’s name, number and expiration date, it won’t do them any good if they don’t have the security number. Most merchants will also now only include the last four digits of your credit card number on receipts.  In fact, the federal Fair and Accurate Credit Transactions Act (FACTA) states that receipts for credit and debit card transactions may only include the last five digits of the card number, and no expiration date. However, the law doesn’t include handwritten and imprinted receipts.

You also have to be careful while shopping online with a credit card. Make sure you are using a secured site (https and often displaying a lock icon) while shopping. It’s also a good idea to use just one specific card for online shopping, instead of several different cards. This will make it easier to keep track of your transactions. It also means that if a thief does happen to get your number, he/she will only have access to one card, not all of them. Internet users can also secure their computers against thieves by using a spyware detector.

Computer users also have to be wary of Internet scams that try to get you to reveal personal information. If you ever find your personal information posted anywhere on the Internet make sure you cancel the credit card and check your statements. You should also request a copy of your credit report from the three national credit bureaus and ask them to put a freeze or fraud alert on your account. A security freeze locks your credit report and score and blocks new lenders from accessing your credit file without your permission. Beware of in-person scams as well. Never fill out a credit card application anywhere but a bank or card issuing company. If you fill out a form at your local shopping mall, you may have just given all of your personal information to a crook.

Phone scams are also popular and successful as somebody may call you, claiming to be from the bank or card issuing company. You should never give out your credit card information to these people, as they already have it on file. If you do receive a phone call like this, ask for a number where you can call them back.

In fact, there are so many ways to steal your credit card information these days that anything you do to safeguard your privacy shouldn’t be seen as unreasonable. Make sure you take all the precautions you can and don’t be afraid to question anything that seems unusual.