Worried about identity theft? Scared a thief can find your account numbers in your trash? Can a dishonest clerk steal your information and your good credit? Want to buy a home? Credit Card fraud costs billions of dollars a year – you don’t have to be another victim – protect yourself!
Today it seems good credit can buy you almost anything, including an overwhelming amount of debt! Protecting your personal identity and using credit wisely is essential to keeping your finances balanced. It is also a good start to eliminating your debt altogether and building wealth.
Credit and charge card fraud costs cardholders and issuers billions 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 card fraud from happening, it can be one of the most stressful positions you can find yourself in today. Good news! There are steps you can take to make it more difficult for the crooks and protect yourself!
10 Ways to Guard Against Credit Card Fraud
1. Sign Your Card – as soon as you receive a new card, sign the back. Or better yet, write "check ID" in the signature line and it reminds the retailer to ask for ID whenever anyone, including you, uses the card. This way to use the card requires a photo ID. They should always ask anyway, though they may get too busy or forget.
2. Keep a Record – Always have a record of your credit card account numbers, expiration dates, and the phone number to contact the company. An easy way is to empty your wallet onto a copy machine, make one copy of the front of your cards, licenses etc., turn them over and copy the back. Remember this is your personal information - keep your copy in a secure place like a locked drawer or safety deposit box. Then if your wallet or cards are ever lost or stolen you’ll know exactly what is missing and how to contact the company immediately.
3. Keep an Eye on Your Card – Always watch the clerk closely during any card transaction and get it back as quickly as possible. Destroy any carbons that may have been made for receipts. Most retailers no longer list the entire account number on a receipt. However it’s your responsibility to check the receipt. If you need to save it for some reason so you can’t destroy it, black out all but a few account numbers so if the receipt gets into the wrong hands it can’t hurt you.

4. Open Bills Promptly – Review your bill and bank statements as soon as they come. Often you can also review your current transactions and balance online. This way you can catch any suspicious activity on your account and deal with it immediately. Using paperless statements can help cut down on vital account numbers in your trash. However, you still must routinely check your online bills for accuracy and contact the company regarding any charges you’re unsure about.
5. Report Any Questionable Charges Immediately – If you find a charge you’re not sure of, even if you think you may have made it, call the card issuer and ask for more details about the transaction. The credit card company is as interested as you are in avoiding credit card fraud and should be very cooperative.
6. Shred Your Statements or Go "Paperless" – for the price of an inexpensive shredder you can protect your private information from anyone going through your trash! It’s a good investment. Online or "paperless" statements are also a great way to avoid having your personal information laying around… it’s also great for the environment by saving paper!
7. Request a "Security Freeze" – A "security freeze" means your credit file cannot be shared with potential creditors and no one can open any form of credit in your name. Your financial institution may have noticed suspicious activity on a credit card, and has "frozen" your credit as a precaution. Today, 35 states allow credit freezes, and 8 even allow them for victims of identify theft.
A credit freeze doesn’t mean you won’t be able to get credit for yourself. You can lift the freeze when necessary using a personal identification number. If your credit files are frozen, even someone who has your name, birthday and Social Security number should not be able to get credit in your name. In exchange for this added security, it will take slightly longer to get your own new credit approvals.
8. Request a "Fraud Alert" – is one step down from a credit freeze. Residents of any state can ask the three major credit reporting agencies to place a fraud alert on their credit reports, which is supposed to alert you and ask your permission when someone applies for credit in your name. Creditors, however, aren’t required to abide by or even check the alert.
Using credit freezes or fraud alerts are a matter of personal choice, but keep them in mind as an option if you would like to protect your private information and guard against credit theft.
9. Change Your Address? Notify Credit Card Companies in Advance – If you’re moving, notify all your creditors in advance. Then your mail with personal information won’t continue to arrive after you’ve gone!