Credit Card Fraud Rules
Credit card fraud is a leading contributor to identity theft, which affects 9 million consumers each year, according to the Federal Trade Commission. The FTC maintains the Consumer Sentinel Network for reporting these types of crimes, and you can visit there to learn about potential schemes (see Resources below).
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Regulations
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The FTC instituted Red Flag Rules in November 2008, mandating that creditors, rather than consumers, should provide protections against identity theft.
Business
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The three top issuers--Visa, MasterCard and American Express--provide protections for their card users. They have assumed the burden of fraudulent card use but cannot protect against overall identity theft.
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Risks
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Consumers can protect themselves by shredding carbons, never using cards on sites without an SSL certificate such as VeriSign, keeping cards in a separate location outside of their wallets, and never giving their card numbers over the phone.
Tracking
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As a consumer, keep a close eye on any unknown charges to your card and immediately report them to the credit card company. Theft often occurs by stealing your statements, so it is imperative to notify the card company if your statement does not arrive in a timely manner.
Retailers
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If your card is signed, a retailer cannot ask for your license number, address or telephone number. If you do not provide this information, retailers cannot prevent you from making your purchase.
Gas Purchases
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Credit card companies have capped gas purchase amounts, such as $75, so you may have to fill twice when gas prices are at higher levels.
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