How to Prevent Card Fraud

Keep your card information under lock and key to prevent fraud.

According to the Federal Trade Commission, credit fraud costs cardholders and issuers hundreds of millions of dollars each year. Not always theft, credit fraud may occur due to personal mistakes, lack of keeping personal records safe and up-to-date and other things beyond your control. Although there is no foolproof way to stop fraud from happening to you, there are ways to prevent credit fraud and minimize your risk of becoming a victim.

Instructions

1. Sign your card in the signature box in permanent ink as soon as it arrives. For extra protection, write "see I.D." in the box.

2. Keep credit records up to date. In a safe and secure place, write down your card numbers, expiration dates and the phone numbers and addresses of the issuing card company in the event the card is lost or stolen. Promptly inform the credit company if you move or change your phone number.

3. Save receipts and statements to compare and account for all transactions. Properly shred carbons, receipts, expired cards and statements to avoid public access to your personal information.

4. Monitor your card at all times when it's on your person. If possible, keep an eye on it during transactions to prevent merchants from discreetly copying or scanning information.

5. Add up the totals when signing your card receipt and never leave a blank space with just your signature. Write out the numbers clearly or put a zero with a line through it. Use only permanent ink.

6. Guard your personal information. If asked for credit information or account numbers over the phone, make sure it is a reputable company and check the company's references. Do not lend anyone your card, and keep your pin numbers confidential.

7. Check for signs of a secure website when making purchases online. According to SSL.com, a website becomes secure when the URL reads "https" instead of "http" (Note the addition of the s). Another indication is a lock icon that is shown somewhere in the window of the browser.

8. Report card losses and fraud immediately. If your card is lost or stolen or if you notice an unauthorized transaction, report it as soon as possible to improve your chances of eliminating potential damages.

Tips & Warnings

• Check your credit report once a year to monitor your score and look for any discrepancies.

• Be alert of fraudulent scams from telemarketers, emails from companies asking for verification of card information and account numbers, websites that are not secure and identity theft. Never give out your information unless you initiated the call or the company is reputable and can support its claims.

References

• Federal Trade Commission: Avoid Credit and Charge Card Fraud
• SSL: How can I tell if a web page is secure?

Resources

• Federal Bureau of Investigations: Common Fraud Schemes