How to Avoid Credit-Card Fraud and Identity Theft
Most people will never experience credit-card fraud. But it would be a mistake to think it couldn't happen to you. Even worse, you could become a victim of a growing form of crime called identity theft. That is when someone uses your name and Social Security number to open new accounts or take over your existing accounts, trading on your good name for their profit.
Here are some ways you protect yourself from the costs and inconveniences of fraud:
1. Protect your credit cards just as you would cash. And just as you don't carry too much cash at one time, minimize the number of cards you carry for everyday use.
2. Keep a list of all of your credit cards so that you can notify creditors quickly in case of theft or loss. Include the account numbers, expiration dates and phone numbers of the issuers. Keep this information separate from your cards.
3. If your card is lost or stolen, report it immediately.
4. Most credit-card issuers won't hold you liable for fraudulent charges as long as you report the activity within a particular time frame. As soon as you suspect fraud, report it to your credit-card company.
5. Keep confidential information confidential. Don't carry your birth certificate, Social Security card, passport or other private information in written form.
6. Destroy copies of receipts, airline tickets, travel itineraries or any other document that displays your card numbers. Criminals can steal credit account numbers in many different ways, such as gathering them from discarded receipts or account statements in people's trash. If a crook also knows the expiration date of your card or your billing address, it's even easier to make a charge.
7. Destroy any "pre-approved" credit-card offers you receive in the mail. Consider a personal shredder to help you keep private information private.
8. Don't give out your credit-card number to anyone who calls you on the phone. A criminal could call you claiming to be from a merchant you've just placed an order with and requesting updated credit-card information. Don't tell them anything. Instead, take down their number and verify it before returning the call. Criminals often collect account numbers from telephone or Internet scams.
9. If one of your credit-card bills is late, call the card issuer right away. A criminal may have diverted your bill to a different address while continuing to rack up charges on your account.
10. Check your statements carefully each month to make sure all charges are accurate. This is especially important for joint account holders, who may assume certain charges were made by their partner.
11. Check your credit report at least once a year. You can buy a copy for
about $8 from any of the big three credit-reporting companies, and there are
Internet services that can also provide these reports. If you've been denied
credit, you can get a copy of your report for free.
-- by Doug Gerlach