How To Avoid Credit Card Fraud

The methods and types of fraud are increasing as criminals learn new techniques and get improved technology. The most common methods of fraud today include:

- Copying and ‘cloning' of cards
- ATM fraud
- Internet card fraud
- PIN number stealing

All of these methods are used more commonly than ever before to effectively steal your money. Obviously, it is impossible to totally eliminate the problem of credit card fraud, but there are things you can do to greatly reduce the risks.

Imagine the following situations:

- Someone rummages through your rubbish to find discarded receipts and then uses your account numbers illegally.
- A shop keeper keeps a copy of your credit or debit card and then uses it to pay for other transactions.
- A mailing asks you to call a long distance number to claim a free prize. You are told to provide your account number to sign up. You do so and are billed for transactions you never made.

Credit card fraud is a huge industry costing consumers and card issuers hundreds of millions of pounds each year. It is a form of theft that is much more discrete than traditional robbery. While it is difficult to completely prevent card fraud from occurring, there are steps you can take to minimize your chances of becoming a victim.

Guard Against Fraud
With overwhelming use of credit cards, there is a need to keep check on the increasing credit card fraud that is dramatically rising on the internet. Internet users know that it is safe to enter their credit card number on a secure online form rather than giving it in a restaurant to pay off. Research shows that there is increasing number of fraudulent cases where purchases are made by mobile phones on account of credit cards of other persons that are higher than credit card fraud on the internet.

As a rule of thumb, you need to use some common sense and there are some tips that shall help you in avoiding credit card scams and protect yourself from card fraud against sudden financial mess:

- Sign the back of your cards as soon as they arrive.
- Carry your cards separately from your wallet.
- Keep your account numbers, expiry dates and company phone numbers and addresses in a safe place.
- Watch your card while it is out of your sight during a transaction and seek to get it back quickly.
- Destroy incorrect receipts and all carbons.
- Compare receipts with your monthly billing statements.
- Open your bills and reconcile your account monthly.
- Report suspicious activity or charges promptly and in writing to your card issuer.
- Notify your card issuer in advance of a change of address.

These are things you should not do:

- Lend your card to anyone.
- Leave your cards or your receipts lying around where others might find them.
- Sign blank receipts. If there are blank spaces on a receipt, draw a line through them.
- Write your account number on the outside of an envelope or on a postcard.
- Give your account number over the phone, unless you have made a call to a company you trust. If you have a question regarding a company, check it out with your local consumer protection office.

On a final note, it is advisable that when withdrawing money from a cash machine, make sure no one is looking over your shoulder to read your PIN. The easiest way for someone to use your card illegally is to see your PIN and then steal the card. Also, make sure you never keep a written record of your PIN, especially near your cards.