No matter how smart credit card thieves get, it’s important for all cardholders to practice some basic credit card safety habits to avoid credit card fraud.

How to Avoid Credit Card Fraud

Don’t loan your credit card to anyone. First, you can’t be sure they’re only going to charge what they say they will. If they overspend with your credit card, you’re ultimately responsible. Second, no one will be as careful with your credit card as you will. It’s never a good idea to let someone else use your credit card.

Always make sure you get your credit card back from cashiers and waiters. Double check your purse or wallet before you leave the store or wallet to confirm your credit card is back in your possession.

Don’t give your credit card number out over the phone unless you initiated the call to the customer service number listed on the back of your credit card. Some credit card thieves trick you into giving out your credit card number, expiration date, or security code by posing as your credit card company or another business you trust. Avoid giving out your credit card number to anyone who calls saying they’re from your credit card company. Instead, hang up the phone and call your card issuer using the number on the back of your credit card.

Don’t enter your credit card information in any email link. Credit card disguise emails to make them look like they came from your creditor. These emails typically encourage you to visit your card issuer’s website to resolve an issue with your credit card. If you click on the link, the email may look just like the real thing, but it’s probably fake. A credit card thief is simply trying to steal your login information by getting you to login to a fake site. If you suspect something is wrong with your credit card, either call your card issuer’s customer service or visit your card issuer’s real website by typing in the URL yourself.

Report address changes to your credit card issuer immediately. Your credit card billing statements include your credit card number. Not only that, if you order a new credit card and it goes to your old address, the new residents (or anyone else) could use the card. Whenever you move to a new address, let all your current billers know your address is changing. You can file a change of address with the postal service to have all your mail forwarded to your new address.

Never sign a blank credit card receipt. The cashier has the ability to write in any amount and send it through to your credit card issuer. It’d be hard for you to dispute the charge because, after all, the merchant as a copy of the receipt with your signature on it. If you’re given a blank receipt, write in the total amount and draw a line through any blank spaces. Ask for a copy of the receipt for your records, just in case you’re billed for a different amount.

Watch your credit card during transactions. Cashiers sometimes use a credit card skimmer to capture your credit card information. The device can easily be hidden, so if you look away for even a moment, your credit card number, security code, and expiration date can be stolen.

Shred any credit card applications you receive. Don’t simply toss them into the trash because dumpster divers can get them and apply for credit in your name. You should also shred your billing statements before putting them in the trash.

Keep your credit card number hidden when you’re using your card in a public place to keep thieves from taking a picture of your credit card with a camera or camera phone.

Never write your credit card number on the outside of a postcard, envelope, or any other piece of paper that will leave your possession. If there are documents with your credit card number on them inside your home, store them in a safe place, or shred them immediately.

Recovering From Credit Card Fraud

If you think you have been a victim of credit card fraud, contact your credit card issuer immediately. The sooner you let your card issuer know your credit card information has been stolen, the less financial responsibility you’ll have for fraudulent charges.

Monitor your billing statement closely and report any errors as quickly as possible. If you have the ability to check your credit card transactions online, login every few days to make sure no one is using your credit card.

While you still have your credit cards, write down your credit card issuer’s phone number and your card number for each of your credit cards. Store this piece of paper in a safe place and refer to it if your credit cards are ever lost or stolen.

Related posts:

1. How to Respond to Credit Card Fraud
2. 10 Ways to Avoid Credit Card Debt
3. 9 Smart Ways to Use Your Credit Card

You can do a lot to prevent your credit card from being lost or stolen, but unfortunately, you may be unsuccessful. The good news is, there is a course of action you can take if your credit card turns up missing.

Prepare for credit card losses before they happen.

If your credit card is missing, you need to be prepared to contact your customer service immediately. The only problem is that, with your credit card missing, you might not have the information you need to call your card issuer, e.g. your credit card number and the card issuer’s 1-800 number. Saving this information before your credit cards are lost will make it easier to contact your card issuer.

While your credit card is still safely in your possession, write down the name of your card, e.g. Citibank Platinum Visa, and your card’s customer service number. Do this for all your credit cards. You don’t have to write down your credit card number because your card issuer can look it up based on your social security number. It’s safer not to write your credit card number down because you never know who might get their hands on that piece of paper.

Once you’ve copied all the customer service numbers, put the paper in a safe place, like your file cabinet. You might also scan a copy and store it on your computer. Or, you can type the information into a document and save it. The key is to have your credit card’s customer service information available when you need it.

Note: the information you need to report your credit card lost or stolen will also appear on a credit card billing statement. You can also refer to one of those if your credit card is missing.

Report your missing credit card as soon as possible.

It’s best to report your missing credit card as soon as you notice you don’t have it. The sooner your report a lost or stolen credit card, the better.

Call your card’s customer service department and let them know your credit card has been lost or stolen. You need to know the date your credit card became missing and your last known purchase. That helps customer service figure out whether your credit card has been fraudulently used or not.

Your card issuer will likely cancel your existing credit card number and send you a new credit card with a new number.

Dispute fraudulent credit card charges.

You should always read your credit card billing statements and it’s especially important to pay attention to them if your credit card has been lost or stolen. That helps you detect fraudulent credit card charges and take care of them quickly.

If your billing statement contains charges you didn’t make, contact your customer service department to dispute the charge. You can call customer service to dispute, but you should also follow up with a letter detailing the charge you’re disputing. This helps ensure your rights are protected.

Your card issuer will do an investigation and remove the charge if it is indeed fraudulent. You’re not required to pay for credit card charges while they are being disputed.

Will you have to pay if someone uses your lost credit card?

Quickly reporting a missing credit card is important because that determines whether you’re responsible for any fraudulent charges made on your credit card. If you report your missing credit card before the thief gets the chance to use it, you won’t have to pay anything. However, if you wait to report the missing card and the thief uses it, you might have to pay up to $50 of fraudulent credit card charges. That’s the maximum amount you’re liable for under federal law, but your credit card issuer may not require you to pay anything no matter when you report the loss.

Keep your credit card safe.

It’s said that an ounce of prevention is worth a pound of cure. That means it’s easier to keep your credit card from being lost or stolen than it is to deal with a lost or stolen credit card. Taking steps to keep your credit card safe can keep you from going through the process of reporting missing credit cards.

• If you have several credit cards, only keep one or two with you at a time. That way, if your purse or wallet is stolen, you don’t lose all your credit cards.
• Always keep your purse or wallet close to your body. That makes it harder for thieves to pickpocket you. When you’re eating at a restaurant, keep your purse under your leg, not hanging on your chair where it can be easily snatched.
• Shred old credit cards rather than tossing them into the trash. This will save your old credit card from dumpster divers.
• Avoid loaning your credit cards, even to your most trusted friends and family members. You never know whether someone will be as concerned about your credit card as you.

Related posts:

1. How to Handle Credit Report Errors
2. 10 Ways to Avoid Credit Card Fraud