Unfortunately, this is a mistake since this white-collar crime is on the rise.
Whether you are trying to rebuild your credit or keep your “good” score, closely monitoring your finances is something that should be done automatically.
5 Common Types of Credit Card Fraud
Watching for discrepancies in account balances and on statements will alert you if any fraudulent charges have been made. However, you can take steps to prevent the theft from ever happening.
Knowing what to look for will help keep your credit safe.
- Be wary when you are shopping online. Since you need to enter in your payment information to place your order, it can be easy for thieves to steal your card number. If you Do Not see a lock icon or other indication that it is a secure and valid site, take your business to another online retailer.
- Your card information, including PIN # is vulnerable at any gas station. Criminals can place a small device on the gas pump, which will collect the data from every transaction. Taking the time to “pay inside” and Not at the pump can save you the hassle of trying to straighten out your finances.
- A study conducted by NASDAQ found that even though mobile users account for only 14 percent of the sales made online, they are responsible for 21 percent of the reported fraudulent activity. Make sure that all security updates for your mobile device have been installed, and double check that you are dealing with a reputable distributer.
- If you love to do your online shopping between 2 am and 6 am, your risk of credit card fraud increases. This is because merchants and banking officials are less likely to notice any abnormal transactions, which makes it the ideal time for criminals to try and steal your information. NASDAQ also found that the risk for fraud increases 200 percent Christmas Eve and Christmas Day.
- Never give your information out over the phone, even to a recognized charity. Almost every charitable outfit has a webpage, email, phone number or physical address where you can safely send your donation to. This is considered the “season of giving”, and thieves like to take advantage of this.
Tips on Preventing Credit Fraud
Along with avoiding scams and keeping an eye on your balances, there are a few other things you can do to protect your cards and credit score.
Practice Basic Security
It can seem like everyone is offering you a charge account, and if you find one with a great interest rate you want to keep your new line of credit safe.
- Immediately sign the back of the new card.
- Never keep your PIN # with the card.
- Take advantage of paperless statements.
- Make monthly payments online.
Current Personal Information
If your address, phone number or email changes it is important that you update your information, especially if your statements are mailed. It also ensures that the bank can easily reach you, if they notice any suspicious activity with your accounts. The sooner you stop any fraudulent activity, the easier it will be to resolve the discrepancies.
Receipts
Watch what you do with your receipts. Don’t leave them laying on check-out counters or in shopping carts and baskets. Shred any that you don’t need, and safely file the ones that should be kept. Double checking your receipts against your statements will help ensure that you won’t be paying for any additional charges.
Use Secure Networks and Devices
One of the best ways to protect your credit cards is to always use a secure network and device when shopping online. Here are a few tips to help keep your charge cards safe.
- Equip your laptop, computer or mobile device with a firewall. Always keep it turned on, and change the password frequently.
- Install all updates whenever prompted.
- Upload security software.
Use Safe Websites
Online shopping is extremely convenient, and it can also put your information at risk. Only shop at sites that are established, and can be easily contacted if there is an issue. A good tip to remember, is to look for sites that have “https” at the start of their web address. The “s” indicates that the site is secured.
Never Share Your Passwords
Your passwords should always be kept private and securely stored. Never divulge them, especially online or over the phone. Change them regularly, and try to avoid using common family names, addresses or birthdays. The best passwords will contain a mix of letters and numbers.
Immediately Report Lost Cards
Credit cards do get lost and if it happens to you, report it immediately! This also applies if you notice any fraudulent activity. The longer it takes for you to report lost or stolen credit cards, the harder it will be for you to dispute any charges that aren’t yours.
You Don’t Have to Be a Victim
Just by following these simple tips, and being aware of your surroundings, you can protect yourself from credit card fraud. Keep track of any and all charges on your accounts, use secure networks and never give anyone your passwords.