Credit Cards

12 Tips To Prevent Credit Card Fraud
Doug Smith

Defined Tag: Credit Card Fraud.

Credit card fraud is a growing crime in this age of "buy it now" convenience. It can result from identity theft, lost bank cards, stolen cards, or even a store clerk swiping cards on a personal card reader. To minimize the possibility of card fraud, follow these twelve pieces of advice.

1. Never send your credit card information by e-mail. E-mail is not a secure data transmission method, and can be intercepted at multiple points between sender and recipient. Furthermore, each server the e-mail passes through might retain a copy of your card numbers in the message.

2. Sign and activate all new bank cards as soon as you receive them. This includes debit cards too.

3. Thoroughly destroy any old cards upon receipt of their replacements. Cut them into dozens of pieces, or shred them. Many new shredders have a slot for shredding old cards. Buy a shredding unit that makes cross-cut or diamond cut pieces.

4. Shred all card statements and receipts that you don't need. Never throw them in the trash whole. Garbage cans can be a gold mine of information for card fraud specialists.

5. Examine all card statements in the mail immediately. Check for suspicious charges. You should keep your monthly receipts in one place, and compare your statement to the receipts. Note any discrepancies.

6. If you see charges you did not make, notify the bank that issued your card immediately. You may not be liable for the fraudulent charges. The faster you report the problem, the sooner you can get the spent money put back into your account.

7. Report any lost or even missing credit cards as soon as you notice that they are gone. The card company can freeze the account, preventing further charges until the card is replaced or found.

8. Most bank cards also function as debit or cash cards. Therefore you should never reveal your personal identification number (PIN) to anyone. Anyone with your card and your PIN can empty your account from the nearest automatic teller machine (ATM).

9. Do not use an easy-to-guess PIN. Birthdays, addresses, or anniversary dates should not be used, as these things can be researched via public records. Create a separate PIN for each of your bank cards.

10. Never use an ATM that looks broken, strange, or shows signs of tampering. Card thieves will often replace the ATM's card-swiping apparatus with their own. When cards are swiped and PINs entered on compromised ATMs, the account number and PIN go into the thieves' computer, not the bank's.

11. If possible, never let your cash cards out of your sight during a transaction. Unscrupulous employees can take your cards out of view and swipe their info on a personal card reading machine. Make sure that the card handed back by the cashier is yours.

12. Make sure all your internet card purchases are done through secure payment pages. On a secure page, the web address will start with https://, not http://. The extra "S" means "secure," which means your payment information will be encrypted before being sent online for approval. Depending on your browser, secure pages will also be noted with an icon of a closed padlock or an unbroken key. Newer browsers will turn the address bar yellow if the page is secure. If your browser warns you that a site's security certificate is missing or has expired, or the site has no https or locked padlock icon on the payment page, do not enter your card number, Social Security Number (SSN), or any other personal information.

It is up to you to keep your personal financial information safe. Be vigilant, report suspicious transactions and lost or missing cards, shred all receipts and old cards, and only submit your Visa, MasterCard, Discover, or American Express number to secure websites. Those simple steps will go a long way towards preventing you from being a credit card fraud victim.

This article is Copyright 2009 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. For Entertainment Purposes Only. Not Intended As Financial Advice. Consult Your Own Financial Professional.