| 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.
- 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.
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