Don’t Let Credit Card Fraud Ruin You

Posted on January 25, 2008 in Money Matters by little mochi

According to the Federal Trade Commission, credit card fraud accounts for 25% of the identity theft cases in 2006.  In a report published by the US Census Bureau, there were 164 million credit card holders in 2003.  This number is anticipated to increase to 176 million by the end of this year (2008).  If the percentage of credit card fraud remains the same, that would mean there would be 44 million credit card fraud cases in 2008.  That’s 44 MILLION!

So how can you protect yourself from being a victim?  Here are a few preventative measures:

  1. Don’t give out your credit card number.  As obvious as this may sound, many people still do it.  One reason is because these identity thieves are getting creative with how they can “scam” you into giving them your social security number.  Once they have that, opening a credit card in your name is will be the first thing they do.
  2. Shred those pre-approved credit card offers and unused cash advance checks.  Don’t just toss them in the trash.  Actually put them through a shredder.  For higher security, purchase a cross cut shredder instead of a strip cut shredder.  A cost of a decent paper shredder can range anywhere from $40 to $300 and is well worth the purchase. 
  3. Shop only through secure websites.  If you want to take extra caution, Discover Card, CitiCard and Bank of America enables you to purchase online using a temporary number.  You will get a different number for every purchase.
  4. If you don’t receive your monthly billing statements, think about notifying those companies immediately.  Someone may be going through your mail to get your personal information.
  5. Always avoid clicking on any links you receive in your email from any banks even when you’re positively sure it’s from your bank.  Rather, type in the full domain name and log in. Some of these emails are fake even though they look legitimate.  These types of emails are called “phishing” emails. 
  6. Review your credit report annually and contact the credit bureaus immediately if you notice any strange or unfamiliar transactions.  You can place a fraud alert or a freeze on your credit if necessary.

Fraud Alert. Although the three tips above can greatly reduce the chances of your identity being stolen, it is every consumer’s responsibility to be vigilent in protecting their own identity.  If you think someone has stolen your identity, put a fraud alert on your credit.  When you request for a fraud alert, you are asking the major credit bureaus (Equifax, Experian, and Transunion) to put a message on your credit report.   This is supposed to tell creditors to verify with you if you or someone else is trying to open a new credit account.

Credit Freeze.  A better option that I prefer over the Fraud Alert is putting a Credit Freeze on your credit.  The difference between a fraud alert and a credit freeze is that creditors will not be able to check your credit at all with a credit freeze.  You and only you can obtain a PIN to temporarily lift the freeze so that your credit application can be processed. 

It’s always a good idea to keep a list of 1800 numbers for each credit card you carry just in case you need to contact them to report any lost or stolen cards.  And be sure to call as soon as possible.  They are just as eager as you in fighting identity theft. 



Comments

4 comments to “Don’t Let Credit Card Fraud Ruin You”

  1. perry-williams on March 7th, 2008 9:27 pm

    excellent information, thanks for posting here so that we could see it. i learned something i didnt know today

  2. Bobby on March 24th, 2008 2:38 pm

    Thanks, you have given a clear idea how to react if one can loose their credit card and also provided some useful tips which are useful for every credit card holder.A credit card acts as temporary money for you. It allows you to make spending when you are short of cash or if you are uncomfortable in carrying too much cash in your pocket, so do not loose it for silly things. For more information just visit the above site.

  3. Larry on March 25th, 2008 3:16 pm

    Hey, it’s true that maintaining a good credit score can be a challenge. However, it is one of the most important areas of your life, and its best to know exactly what your score is, and how you can improve it. if you can understand it, you’ve gotten one step closer to building a wonderful credit report, and a fabulous credit score.

  4. Rachael on April 16th, 2008 11:13 am

    Although the three tips above can greatly reduce the chances of your identity being stolen, it is every consumer’s responsibility to be vigilent in protecting their own identity. If you think someone has stolen your identity, put a fraud alert on your credit.

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