Avoiding Credit and Charge
Card Fraud
A thief goes through trash
to find discarded receipts or carbons, and then uses your account
numbers illegally. A dishonest clerk makes an extra imprint from
your credit or charge card and uses it to make personal charges.
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 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 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 card number without your knowledge.
It's not always possible to prevent credit 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 card or 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 cards as soon as
they arrive.
- Carry your cards separately
from your wallet, in a zippered compartment, a business card
holder, or another small pouch.
- Keep a record of your account
numbers, their expiration dates, and the phone number and address
of each company in a secure place.
- Keep an eye on your card during
the transaction, and get it back as quickly as possible.
- Void incorrect receipts.
- Destroy carbons.
- Save receipts to compare with
billing statements.
- Open bills promptly and reconcile
accounts monthly, just as you would your checking account.
- Report any questionable charges
promptly and in writing to the card issuer.
- Notify card companies in advance
of a change in address.
- Don't:
- Lend your card(s) to anyone.
- Leave cards or receipts lying
around.
- Sign a blank receipt. When
you sign a receipt, draw a line through any blank spaces above
the total.
- Write your account number
on a postcard or the outside of an envelope.
- Give out your 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 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 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 charges. In any event,
your maximum liability under federal law is $50 per card.
If you suspect fraud, you may be asked to sign a statement under
oath that you did not make the purchase(s) in question.
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