Credit Card Scams | How to Protect Yourself

Credit Card Scams

Credit card fraud is a broad term used to describe the act of making a purchase with someone else's credit or debit card. Credit card theives use many techniques, so be on the lookout for the most common forms of fraud.

Skimming: Criminals attach a device to an ATM or point of sale terminal that will capture an account number from the magnetic stripe on the back of the card. The information is then used to "clone" a duplicate card with your information on it.

Phishing and Spoofing: Credit card information is stolen by sending you a bogus e-mail claiming to be from your bank or credit card company. The e-mail may say something like the bank needs to make a change to your account and needs you to input your account information. Phishers and spoofers may even send you a link that looks almost exactly like your bank or credit card company's website, asking you to input your account information.

Social Engineering: Criminals will contact the victim directly by telephone (or cell phone), and tell some story which ends up in them requesting that the victim tell them 'a few basic details about their card.'

ID Theft: Personal information like a victim’s name, telephone number, home address and Social Security number are stolen, possibly from the mail, trash or even online, and then used to open up a new credit card account in their name.

Card Not Present: Stolen credit card information is used to purchase something from a remote location, either by telephone or the Internet. The merchant cannot see the card and should be checking that the information is valid. Personal information is sold online for as little as $20 at Web sites that contain public records.

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How to Protect Yourself from Credit Card Fraud

• Never throw away any personal data, including credit card statements and offers for new credit cards, without completely destroying it or shredding the information.

• Check your credit history once or twice a year at one of the three credit reporting agencies — TransUnion, Experian and Equifax — to see that nothing is amiss. Experts recommend signing up for a fraud alert service, offered by the credit agencies, that will tell you if a new account has been opened, or will notify you about any changes to your credit file.

• Never let your credit card out of your sight for too long when paying.

• Never give out your credit card account or other personal information to people posing as bank representatives over the phone if you have not contacted them first. Call the bank yourself.

• Never give out your credit card account information to anyone posing as your bank online, and never click on links to new sites that someone posing as your bank may send you in an unsolicited e-mail. Banks will never ask you for your full Social Security number or account number if you have an established relationship with them, experts said. Call your bank and inquire if changes need to be made; similarly, type in your bank's URL yourself. "The difference in the [fraudulent] URL could be off by one character, which you would never notice," said Jim Van Dyke, founder and principal analyst for financial services research firm Javelin Strategy & Research, based in Pleasanton, Calif.

• Turn off paper statements wherever possible and use electronic statements.

• Be proactive. Log on to your accounts more than once a month to monitor for suspicious activity.

• Secure your personal information — don't carry your Social Security card or write your personal identification number on your credit card. Check your credit report a minimum of once a year. Always get one if you believe you have been a victim of fraud or identity theft.

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