Credit card fraud is a real problem

August 10, 2011 – 11:44 am

If you’ve got credit cards in your wallet, then you’ve got issues with identity theft. Most consumers have at least one credit card, and it’s important to learn how to protect the card – and yourself – from identity theft.

Thieves can get hold of your credit card information by digging through your trash or mail, stealing your purse or wallet, or calling the bank with your personal information in hand, and reporting the card as missing or stolen, in order to receive a replacement card.

To protect yourself, only carry your cards when you need them, and monitor your mailbox. Make sure you shred all documents that contain personal or financial information before disposal.

Another very real threat when it comes to credit cards is skimming. Thieves use these devices to skim a card and obtain the information on the magnetic strip. The information can then be used to create a new card. Scan your card yourself whenever possible, and if you have to give it to someone else to scan, make sure they scan it in your presence. Don’t use card readers that look suspicious.

Many credit card companies are now using radio frequency chips on their cards, which enable the card holder to simply wave the card in front of a reader in order to make a purchase. The problem with this technology is that a thief can purchase a reader and simply walk by your purse or wallet and scan the information on your card.

The simple answer here is to not use cards that bear these chips. If you already have one, use a nickel-plated wallet or specially-made envelope to store the card, to prevent it from being scanned.

Make sure you check you credit card statements each month to be sure there are no unauthorized or fraudulent entries. And always use your credit card online only when the site is secured and you know your information will be encrypted.

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