Avoiding Credit Card Fraud

It seems new scams are created every day to take advantage of credit card holders. But these scams can be easily avoided by following a few simle steps:

• Sign your cards as soon as they arrive.
• Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch.
• Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place.
• Keep an eye on your card during the transaction, and get it back as quickly as possible.
• Void incorrect receipts.
• Destroy carbons.
• Save receipts to compare with billing statements.
• Open bills promptly and reconcile accounts monthly, just as you would your checking account.
• Report any questionable charges promptly and in writing to the card issuer.
• Access your credit file once a year to ensure it is accurate and doesn't contain loans or activities you haven't authorized.
• Keep your personal identification number (PIN) separate from your credit card and never disclose it to anyone.
• Notify card companies in advance of a change in address.
• Don’t lend your card(s) to anyone.
• Don’t leave cards or receipts lying around.
• Never sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.
• Never write your account number on a postcard or the outside of an envelope.
• Never give out your account number over the phone unless you're making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.
• Don't give personal information or your credit card account number over the phone or the Internet unless you are confident that you are dealing with a company you know and trust.

Back to top

What you should do if you find unauthorized transactions on your account:

Step 1: Contact your credit card issuer immediately to report the unauthorized transactions.

Step 2: Check your credit card agreement. Your agreement should contain a section that explains your maximum liability in the case of lost or stolen credit cards, or unauthorized use of your credit card number.

Step 3: Find out if your credit card issuer offers "Zero-Liability" on unauthorized transactions. For example, Visa and MasterCard cardholders are protected beyond the maximum liability found in their credit card agreements. This is done through a public commitment Visa and MasterCard call the Zero-Liability Policy. If your Visa or MasterCard is lost or stolen, or if someone uses your Visa or MasterCard account number to make transactions you did not authorize, you can usually be reimbursed.

This policy applies to transactions made on the Internet, by phone or at retailers, but may exclude personal identification number (PIN)-based transactions – for example, a cash advance made on your card at an automated banking machine (ABM) – and transactions made on corporate credit cards. Find out from your credit card issuer whether they have such a policy and how it can protect you. Note that these policies are not listed in credit card agreements, since they are public commitments and not legal requirements.