Is My Identity at Risk if My Credit Card Number Was Stolen?
Identity theft happens when someone uses your personal information, without your consent, to commit fraud. It ranges from simple fraud -- someone uses your card to buy things for himself -- to the thief copying your driver's license with his photo and giving your name if he's arrested. If someone uses your credit card number, he can do severe damage to your credit, although you can repair it.
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How
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Thieves have an array of options for stealing your credit card data. If you throw your statements away, someone searching through your trash for papers can get the information there. "Phishing" emails falsely tell you that there's a problem with your account and direct you to log into a website with your information. Thieves have hacked credit card numbers off the Internet and used technology to take them off store card scanners. Some criminals trade stolen numbers with each other, making the damage worse.
Result
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Once a thief has your credit card information, she can use it to shop anywhere that accepts credit purchases. A thief could run up thousands of dollars of purchases or rent a car, not return it and leave you stuck with the bill. If she contacts the company and changes the billing address for your statements, it could be months before you discover the problem. If the thief has other stolen information, such as a Social Security number, your birth date or your address, she could open new accounts or rent an apartment in your name.
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Avoiding the Bill
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If you follow the rules for reporting the theft, you can limit your liability for the unauthorized charges to $50. This requires you to notify your lender no later than 60 days after the company mailed you the bill with the first false charges. That holds true even if the thief changed your mailing address, so stay alert: If your bill doesn't show up, check with the company immediately. You must send your letter to the creditor's "billing inquiries" address, not to the address you send your payments.
Self-Defense
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To protect yourself, check your credit card bill when it arrives and make sure the charges are all for things you authorized. Shred the bill before you throw it away. Order a copy of your credit reports from the big three credit bureaus -- Equifax, Experian and TransUnion -- once a year, using the Annual Credit Report website to get the reports free. If you discover you've been victimized, cancel the affected credit card and notify the company immediately.
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