Avoiding Credit and Charge Card Fraud
A thief goes through trash to find discarded receipts or carbons,
and then uses your account numbers illegally. A dishonest clerk makes
an extra imprint from your credit or charge card and uses it to make
personal charges.
You respond to a mailing asking you to call a long distance number
for a free trip or bargain-priced travel package. You're told you must join
a travel club first and you're asked for your account number so you
can be billed. The catch! Charges you didn't make are added to your
bill, and you never get your trip.
Credit and charge card fraud costs cardholders and issuers hundreds
of millions of dollars each year. While theft is the most obvious form
of fraud, it can occur in other ways. For example, someone may use your
card number without your knowledge.
It's not always possible to prevent credit or charge card fraud from
happening. But there are a few steps you can take to make it more difficult
for a crook to capture your card or card numbers and minimize the possibility.
Guarding Against Fraud
Here are some tips to help protect yourself from credit and charge card
fraud.
Do:
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.
Notify card companies in advance of a change in address.
Don't:
Lend
your card(s) to anyone.
Leave
cards or receipts lying around.
Sign
a blank receipt. When you sign a receipt, draw a line through any blank
spaces above the total.
Write
your account number on a postcard or the outside of an envelope.
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.
Reporting Losses and Fraud
If you lose your credit or charge cards or if you realize they've been
lost or stolen, immediately call the issuer(s). Many companies have
toll-free numbers and 24-hour service to deal with such emergencies.
By law, once you report the loss or theft, you have no further responsibility
for unauthorized charges. In any event, your maximum liability under
federal law is $50 per card.
If you suspect fraud, you may be asked to sign a statement under oath
that you did not make the purchase(s) in question.
For More Information
The FTC works for the consumer to prevent fraudulent, deceptive and
unfair business practices in the marketplace and to provide information
to help consumers spot, stop and avoid them. To file a complaint, call
toll-free, 1-877-FTC-HELP (1-877-382-4357.
4470 W. Sunset Blvd., Suite 216, Los Angeles, CA 90027
