How To Avoid
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.
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.
- 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
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