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Protection >> Avoiding Credit and Charge Card Fraud
Avoiding Credit and Charge Card
Fraud
Credit Card and Charge
Card Fraud
A thief goes through trash to find discarded
receipts or carbons, and then uses your credit card account numbers
illegally charge your cards - this is credit
card fraud.
A dishonest clerk makes an extra imprint from
your credit or charge card and uses it to make personal charges
- this is credit card fraud.
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
- this is credit card fraud.
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.
Credit
Card Fraud Prevention
Here are some tips to help protect yourself from credit and charge
card fraud.
Things
to DO to prevent credit card fraud:
- 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.
Things
NOT TO DO to avoid Credit Card Fraud
- 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 Credit Card 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
about Credit and Charge Card Fraud
You can file a complaint with the FTC by contacting
the Consumer Response Center by phone: toll-free 1-877-FTC-HELP
(382-4357); TDD: 202-326-2502; by mail: Consumer Response Center,
Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington,
DC 20580; or through the Internet, using the online
complaint form. Although the Commission cannot resolve individual
problems for consumers, it can act against a company if it sees
a pattern of possible law violations.
The FTC publishes free brochures on many consumer issues. For a
complete list of publications,
write to Best Sellers, Consumer Response Center, Federal Trade Commission,
600 Pennsylvania Ave, NW, Washington, DC 20580; or call toll-free
1-877-FTC-HELP (382-4357), TDD 202-326-2502.
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