Protect Yourself from Credit Card Fraud

Concerns about credit card fraud permeate our society, creating unsettling images of thieves assuming your credit and financial identity, criminals sifting through your trash for credit card and bank information, unscrupulous sales clerks noting your credit card account numbers and charging on your cards, or dishonest scammers victimizing consumers on the Internet or calling your home phone to garner personal information. The list of dangers seems endless. And while you needn't fear using your credit cards, there is validity in the need to protect yourself when you do.

By practicing a few simple security rules, you'll make yourself less of a target for credit card fraud. Here are a few guidelines:

• Sign your credit card - Always sign your name on the card as soon as it arrives.


• Request a photo credit card - Many credit card issuers offer extra security by adding your photo to the card. If your card is lost or stolen, this is an effective way to prevent someone else from using it. However, this will not help unless the thief uses your card in person.


• Keep a watchful eye on your credit card - When paying for a purchase in person with a merchant, develop the habit of keeping an eye on your card until it's given back to you.


• Keep credit cards separate from your wallet or purse - Credit cards are less likely to be stolen if they are not such obvious targets.


• Never lend your credit cards to anyone - Know where your cards are at all times.


• Don't leave credit cards or receipts where others can find them - Keep your cards and receipts under lock and key if workers or visitors come to your home.


• Avoid giving your credit card account numbers over the phone - If you must conduct a transaction by phone, make sure it's with a reputable company.


• Monitor your credit card statements - Check your statements carefully for fraudulent activity each month. If you spot anything suspicious, contact your credit card company immediately.


• Keep a master list of your credit card accounts - Prepare a list of all of your cards including the account numbers, expiration dates, and the issuer's phone number and address, and keep it in a secure place so you can contact the credit card companies if your cards are lost or stolen.


• Keep your credit card receipts - Save your credit card receipts to compare with your statements each month. It's not always easy to remember each transaction by the time the bill arrives.


• If your credit cards have been lost or stolen, report it to the credit card company immediately. Consumers are protected by the Fair Credit Billing Act (FCBA) and are only liable for the first $50 in fraudulent charges on each card (unless you carry a zero liability card in which case you'll have no financial liability).