Avoid Credit Card Fraud

A thief goes through trash to find discarded credit card receipts or credit card carbons, and then uses your credit card account numbers illegally.

A dishonest clerk makes an extra imprint from your credit card or charge card and uses it to make personal charges on your credit card.

You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your credit card account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip.

Credit card and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your credit card number without your knowledge.

It's not always possible to prevent credit card or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your credit card or credit card numbers and minimize the possibility.
Guarding Against Fraud

Here are some tips to help protect yourself from credit and charge card fraud.

Do:

* Sign your credit card as soon as they arrive.
* Carry your credit card separately from your wallet, in a zippered compartment, a business card holder, or another small pouch.
* Keep a record of your credit card account numbers, their expiration dates, and the phone number and address of each credit card company in a secure place.
* Keep an eye on your credit card during the transaction, and get it back as quickly as possible.
* Void incorrect credit card receipts.
* Destroy credit card carbons.
* Save credit card receipts to compare with billing statements.
* Open credit card bills promptly and reconcile accounts monthly, just as you would your checking account.
* Report any questionable credit card charges promptly and in writing to the card issuer.
* Notify credit card companies in advance of a change in address.

Don't:

* Don't end your credit card(s) to anyone.
* Don't leave credit cards or credit card receipts lying around.
* Don't sign a blank credit card receipt. When you sign a credit card receipt, draw a line through any blank spaces above the total.
* Don't write your credit card account number on a postcard or the outside of an envelope.
* Don't give out your credit card account number over the phone unless you're making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.

Reporting Credit Card Losses and Fraud

If you lose your credit or charge cards or if you realize they've been lost or stolen, immediately call the issuer(s). Many credit card companies have toll-free numbers and 24-hour service to deal with such emergencies. By law, once you report the loss or theft, you have no further responsibility for unauthorized credit card charges. In any event, your maximum liability under federal law is $50 per credit card.

If you suspect credit card fraud, you may be asked to sign a statement under oath that you did not make the purchase(s) in question.