Credit Card Fraud:  Prevention and Cures

All credit card users are potential victims of credit card fraud. A thief does not have to steal your credit card or rifle through your trash to get account numbers. Any time you use your credit card you are making your account number available to everyone who is involved in the transaction, from the sales clerk to the billing staff of the creditor.

Ten Ways To Help Protect Yourself From Credit Card Fraud

• Never leave cards or receipts lying around.

• Destroy all carbons and incorrect receipts.

• Avoid signing blank receipts.

• Keep a record of your card numbers, their expiration dates, and the phone numbers and addresses of each creditor in a secure place.

• Report any questionable charges to the card issuer promptly and in writing.

• Never give your account numbers over the phone, unless you are initiating a transaction with a company you know is reputable.

• Sign credit cards, in ink, as soon as they arrive.

• Save receipts to compare with your billing statements.

• Carry credit cards separate from your wallet.

• Instruct everyone who is authorized to use your account to take the above precautions.

If Your Card Is Stolen

If your credit card or account numbers are stolen call the card issuer immediately. Some companies have a toll free phone number printed on their billing statements to use when reporting a stolen card. After you have reported your card missing to the card issuer follow up your call with a letter. Be sure to keep a copy of the letter you send for your records. The call and the letter should include:

• Your name

• Your account number

• The date you noticed your card missing

• The date you phoned the creditor to report your credit card missing

If you report your credit card missing before it is used without authorization, you may not be responsible for any of the unauthorized charges. Pursuant to federal law, if your credit card is used without authorization before you report it missing, the most you will be liable to pay is fifty dollars.

If You Suspect Fraud

If you suspect someone has illegally used your account number you must contact the card issuer no later than 60 days after the first bill on which the charge appeared is sent. Follow a telephone call to the issuer with a letter. Be sure to retain a copy of the letter for your files.

Include the following information in your call and letter:

• Your name;

• Your account number;

• The dollar amount of the suspect charge;

• A description of the charge; and

• An explanation of why you believe there is an error.

While the disputed charge is being researched you are not required to pay any of the amount in question. However, you are obligated to pay the balance that is not in question.