Tips for Consumer Credit Card Fraud Protection

Checking a website's security certificate is one way to protect yourself against credit card fraud.

With more people conducting online transactions, consumer credit card fraud has become more prevalent with the proliferation of unsecured websites and credit card scams. According to an April 2009 article published by creditcards.com, credit card fraud surpassed computer viruses, terrorism and disease outbreaks as American consumers' number one fear. Getting your credit card information stolen can be a frightening and stressful experience. Knowing what precautions to take will help decrease the likelihood that you will fall victim to this type of fraud, and spend excessive amounts of time and money repairing your credit report.

Credit Card Signatures

Signing the back of your credit card as soon as it arrives in the mail is the first step to preventing credit card fraud. Though some retail stores neglect to ask for identification during credit card purchases, the lack of a signature and accompanying I.D. may prevent an unwanted purchase on a stolen credit card. Another way to prevent thieves from using a stolen card is to write "Photo I.D. Required" on the back of the credit card in lieu of your signature.

Insecure Websites

Be wary of the Web forms you use to enter credit card information. Some sites display an unbroken key or locked padlock at the bottom of your window to indicate a higher level of security. However, these symbols do not guarantee that your data is 100 percent secure from identity or credit card theft. Prior to making a purchase, investigate the vendor website's security software and digital certificates. Look for Secure Sockets Layer (SSL) certificates provided by VeriSign and Thawte, which authenticate websites and enable secure transactions. Send an email to make sure they have a valid email address and research reviews posted on the Better Business Bureau and other consumer protection websites (see Resources).

Credit Card Statements

"Dumpster diving" or rummaging through old trash bins is a very common way for thieves to obtain sensitive personal and credit card information. Since your trash will likely pass through many hands before it arrives at a landfill or incinerator, the chances of someone acquiring your account number, home address or PIN number increases exponentially. Use an electronic shredder that slices in two directions to decrease the chances of your statements being pieced back together.

Personal Information

Be protective of personal information you give over the phone, in person or over the Internet. If you receive a call from a person claiming to be from a credit card company or asking for security codes and credit card numbers, hang up immediately. Report the caller to your credit card company so that they are on alert and can warn other credit card users about the scam. Never allow vendors to write your credit card number, expiration date or security code on a banking or sales receipt. Rules issued by Visa, MasterCard and American Express state that merchants must still process a transaction even if a customer refuses to have their personal information written on the banking or sales slip.

References

• University of Oklahoma: ID Theft
• Creditcards.com: Credit card fraud Americans' biggest fear

Resources

• Better Business Bureau