Guarding Against Credit Card Fraud

Credit card fraud has become a fact of life. Chances are that either you or someone you know has been the victim of credit card fraud. Preventing fraud is a better choice than cleaning up credit card fraud. Learn what steps you can take to hinder a thief from using your personal financial information for his or her own personal gain.

Many of the steps that you can take to prevent identity theft are simply common sense. Unfortunately, people often become relaxed about their financial information since it is a part of their daily lives. Becoming vigilant once again is important to the safeguarding of your personal financial data.

Steps To Follow

• Cancel any credit cards that you are not actively using.
• Shred any cancelled credit cards.
• Sign each credit card immediately upon receiving it.
• Secure your credit cards in the same location all the time, for example, a small business card holder, thin wallet, or small coin purse. This way you will notice more quickly if a credit card disappears.
• Make sure that you get your credit card back after every transaction. In fact, attempt to keep your credit card in view during the sales transaction. Not only does this prevent any funny business with the card, but also, it helps the consumer to remember to get the card back into their possession before leaving.
• Draw a line through any blank lines on a credit card receipts that you are signing. For example, if you charge a meal at a restaurant and pay the tip with cash, be sure to draw a line through the space reserved for the tip.
• If your credit card company offers a service that lists the last few transactions on the account, take advantage of it. Usually, this service is free and is available with a toll free phone number. Consumers can easily recognize unauthorized activity on their cards if they make this a common habit in their safeguarding regimen.
• Always check the list of charges on any credit card bill that you receive. Call immediately if you have any questions about a charge.
• Consumers should save all of their credit card receipts to compare against the statement for accuracy. Check the amounts to verify that they are identical.
• Destroy, preferably by shredding, any carbon copies, old receipts, credit card convenience checks, and any unnecessary paperwork that has your account numbers on it.
• Immediately shred offers for new credit card accounts that arrive in the mail. Simply throwing them away leaves them accessible for thieves.
• Request that current credit card companies, which you deal with now, to discontinue sending convenience checks.
• Acquire a free credit report from each of the three credit reporting agencies each year and check for activity that is suspicious.
• Take advantage of offers for photo identification credit cards. Some companies offer a free service that places a picture of the credit card holder on the credit card itself.
• When opening new accounts, request the option to use a password rather than your mother's maiden name.
• When opening new accounts, use passwords that cannot be easily guessed.
• Consumers should notify credit card companies of any changes in their address as soon as possible.
• When going away for vacation or business for more than a couple of days, request that the post office hold your mail until you get back.
• Social security numbers are personal. Consumers should attempt to give their numbers out less frequently. Not all requests for an individual's social security number are necessary or mandatory. Ask if you may exclude the number on innocuous paperwork such as simple informational forms.
• Promptly report any inconsistencies that you discover when reviewing your credit card statement, receipts, or credit reports.
• Request that any co-holders of credit cards on your account follow as many of these precautions as possible.

In addition to following these precautionary steps, consumers should stay alert and on their guard. Incorporating the above steps into your daily or weekly routine, whenever possible, could be the difference between having to deal with unauthorized credit card use in your name and peace of mind.

Negative Steps To Avoid

• Avoid writing your personal account number on envelopes and other areas visible to other people.
• Never e-mail your credit card number to someone else.
• Never loan your credit card to anyone. Good intentions sometimes have a way of going astray.
• Consumers should avoid leaving their credit cards easily accessible to others.
• Avoid giving your credit card number in any conversation that you did not initiate.
• Never sign a blank receipt. For example, some restaurants will get a pre-approval for a credit card payment by having the customer sign a receipt. Be sure that a reasonable amount has been filled in and that the charge will not actually go though.
• Refrain from leaving your handbag, purse, or wallet in an unsecured area. Don't tempt an identity theft with easy access to your credit cards.

Guarding against credit card fraud is not as daunting a task as it may appear. Once the steps are incorporated into your routine, they become almost second nature to you. Protecting your financial well-being should be a priority in your life. Use these steps to secure peace of mind and to retain a positive credit history.