By: LINDSEY O’NEILL, ESQ.
Credit card and debit card fraud is more widespread than in the past. In fact, the FTC reports that such fraud costs hundreds of millions of dollars each year in losses to cardholders as well as the credit card companies and issuers. It can happen in a variety of ways ranging from the theft of your wallet or purse to “dumpster diving” (rummaging through your trash) to find copies of your card card or bank statements. Thieves can even watch you enter your credit card number into your mobile phone from a distance away – called “shoulder surfing” and listen in on your conversation to capture additional sensitive information. In many cases, thieves may even be using your credit card without you even realizing the unauthorized charges are being made to your account.
As soon as you realize your credit or debit card has been lost or stolen, or you notice unauthorized charges to your account, contact the issuer immediately to report the problem. There are a variety of laws in place designed to limit your liability for the charges if you report it promptly. Also, many issuers offer “zero liability” programs which also strive to limit your liability for the unauthorized charges to your account when promptly reported. Once you report it, the law protects you against any further unauthorized charges. Also, visit any of the three credit bureaus, Equifax, Experian, or TransUnion, for more information or to place a fraud alert on your credit report.
No matter how careful you are, though, fraud still does happen sometimes. Here are a few tips from the FBI to help minimize your chances of becoming a victim of credit card fraud:
- Don’t give out your credit card number(s) online unless the site is a secure and reputable site. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but might provide you some assurance.
- Don’t trust a site just because it claims to be secure.
- Before using the site, check out the security/encryption software it uses.
- Make sure you are purchasing merchandise from a reputable source.
- Do your homework on the individual or company to ensure that they are legitimate.
- Try to obtain a physical address rather than merely a post office box and a phone number, call the seller to see if the number is correct and working.
- Send them e-mail to see if they have an active e-mail address and be wary of sellers who use free e-mail services where a credit card wasn’t required to open the account.
- Consider not purchasing from sellers who won’t provide you with this type of information.
- Check with the Better Business Bureau from the seller’s area.
- Check out other web sites regarding this person/company.
- Don’t judge a person/company by their web site.
- Be cautious when responding to special offers (especially through unsolicited e-mail).
- Be cautious when dealing with individuals/companies from outside your own country.
- The safest way to purchase items via the Internet is by credit card because you can often dispute the charges if something is wrong.
- Make sure the transaction is secure when you electronically send your credit card numbers.
- You should also keep a list of all your credit cards and account information along with the card issuer’s contact information. If anything looks suspicious or you lose your credit card(s) you should contact the card issuer immediately.
In addition to the tips above, the U.S. Department of Justice has a catchy phrase to help you remember important ways to protect yourself. You just remember the word “SCAM”:
“S” – Be stingy about giving out your personal information to others unless you have a reason to trust them, regardless of where you are at home, traveling, talking on the telephone, or otherwise;
“C” – Check your financial information regularly, and look for what should be there and what shouldn’t;
“A” – Ask periodically for a copy of your credit report.
“M” – Maintain careful records of your banking and financial accounts.
