There are four primary ways that your credit card can be compromised. Understanding how your credit information becomes compromised and taking the proper steps to prevent compromise can save you hours of time clearing up fraudulent charges, etc.
Identity Theft
If you’ve ever lost your purse or wallet, don’t assume that all is well if the wallet is turned in. All the information in your wallet, including your credit card info can be copied. Even your checking account information can be taken.
An “honest” identity thief can do a lot of damage with the information in your wallet. They don’t have to keep the plastic in their possession to cause harm, or to steal your identity.
Place a credit freeze on all your accounts. Not only should you report the loss to the individual card issuers, notify the credit reporting agencies. The harm an identity theft can cause you is significant, so you want to be proactive anytime there is a risk your information may have been compromised.
Illegal Copying – Credit Card Skimming
A dishonest employee can swipe your credit card through a machine called a skimmer. The skimmer reads all the numbers and information on your credit card, enabling the crooked employee to sell the information. Information that is skimmed can be used to create counterfeit cards, order things on the internet or even place phone orders.
The best practice is to never allow your card to leave your sight. At fast-food drive-up windows observe whether or not you can see the card-swipe machine. If you can’t, don’t use your debit or credit card. Instead, plan on using walk-in service the next time you frequent that fast-food eatery. In restaurants, never place your credit card on the tray to have the cashier process the transaction for you. Take the time to pay in person.
Phishing Emails
You can’t depend on your email spam filter to catch all of the fraudulent emails that pretend to be from your bank or credit card issuer. This makes it important to recognize what a phishing email looks like.
First, a phish looks like official email. It will use the credit card’s logo. It will have a url that is very close to the official banking site.
Second, a phish asks you to “confirm” information the bank already has. This is your warning that this is a phishing email. Remember, you bank has all this information and doesn’t need to send out messages asking you to “confirm” that the information on record is correct.
If you adhere to the following principles, you will protect yourself from phishing risks.
- Never give out your credit card number, Social Security number , your account password or the name of the primary account holder unless you initiated the call to a number you know is secure. Most credit cards now only ask you to reveal the last four digits of your Social Security number.
- Never click on the link of an email you suspect may be a phishing email. It is better to call your credit card issuer and ask questions. The number will be on the back of your credit card.
- Never share the security code on the back of your credit card unless you have initiated an order. A criminal may call and provide you with all of the rest of your credit card information, even account password, and still be seeking to defraud you. Now that most internet and even phone transactions require this piece of information, this is a valuable piece of information that can protect you from becoming a victim of credit card fraud.
Other Things to Watch
- When you receive a new credit card, activate it immediately. Then sign with permanent black ink. The advice that has been passing around the internet that you write “Ask to See ID” isn’t as good as it seems. An identity thief will have their ID instead of yours, so the lack of your signature on the card works against catching the crook.
- Reconcile your accounts daily if possible. This makes it easier to identify fraudulent transactions before they escalate into multiple transactions.
- Never let your wallet or purse out of your sight.
- Switch to electronic billing and payments to reduce the risk of your credit card information falling into the wrong hands. If you do use the mail, consider using a post office box, or a locking mailbox to reduce the risk of statements falling into the wrong hands.
- Shred credit card offers so they cannot be used to open fraudulent accounts.
- Never enter your credit card information to access a “free” site. You don’t know who will charge you for the “free” transaction.
These are all practices that can protect you from credit card fraud. Put them into practice.
