Protecting yourself from credit card fraud
Unless you have personally been affected by credit card fraud, you’re probably pretty tired of hearing about it. You might be under the impression that people who warn against credit card theft might just be alarmists who have nothing better to do with their time. You might think you’re exempt from credit card theft because you don’t have any credit cards in your own name. Perhaps you have the frame of mind that credit card theft has no effect on you whatsoever.
No, no, and no!
Sure, there are some alarmists out there, but for the most part their message is a good one. You have to protect your credit card information or it will probably get stolen. You’re not exempt from all forms of credit card fraud even if you don’t have a credit card, because someone might steal your identity and open up a bunch of credit cards in your name. Even if you have never personally dealt with credit card theft, it still has an effect on the interest rates that credit card companies are able to offer their cardholders, much like a store raising prices to cover the cost of paying for shoplifted goods.
So now that you know that you actually need to be concerned about credit card fraud, here are the things you need to do in order to protect yourself.
1. If it seems shady, it probably is. You get a phone call from a travel agent you’ve never heard of, and he says he has a great deal on last-minute trips to Cancun or some equally exotic location. You have to act soon, though, because these deals won’t last, so he needs your credit card number to reserve your spot. Don’t fall for it. As a rule, don’t ever give out your credit card number during a conversation you didn’t initiate.
2. Not everyone posing as a bank representative is actually employed by the bank. A classic phishing technique is to create an e-mail, pop-up, or website that mimics an actual bank or lender. You’ll be asked to provide your credit card number or some other bit of personal information in order to “verify” your identity to solve some urgent issue. Don’t fall for this one either. If you’re concerned, initiate a phone call to your bank or lender and find out if there is actually a problem or if someone was trying to pull one over on you.
3. Watch your mouth: You never know who is listening. If you have to give your credit card number to someone over the phone, don’t do it loudly and in a room full of people because you risk someone writing down what you say. By the same token, don’t leave your credit cards lying around either because you never know who might decide to pick them up.
4. Shred your statements. If you receive credit card statements through the mail – and you don’t file them away for safekeeping – then don’t just toss them in the trash after you review them. It’s far too tempting for a thief to rifle through your garbage and grab up the statements…don’t give them the opportunity.
5. Pay attention. When you’re in a situation where your credit card will disappear from your sight for a while – such as at a restaurant – pay attention to the environment around you. If the server seems shady and makes you uncomfortable, personally walk the card up to a register, or instead just pay with cash. It’s a good idea to trust your instincts when it comes to these types of things.
There is a big difference between being an alarmist and being vigilant. You don’t have to be paralyzed by your fear of encountering credit card fraud, but on the other hand you probably shouldn’t throw caution to the wind when it comes to safeguarding your personal information.
A little common sense will reduce your chances of becoming a victim of credit card fraud dramatically.
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[...] Jonathan, again from Master Your Card, offers a few tips on protecting yourself from credit card fraud. [...]