Here are some Dos and Don'ts tips on how to avoid fraud:

Consumer's Guide to Avoiding Fraud

Adam is a 70 year old widower who lives alone. Though he has several grown children and grandchildren, he wants to maintain his independence by living on his own and handling all of his financial matters. One day, he receives a phone call from his credit card company asking him to verify his account number, card expiration date, and full name. Trusting the call is legitimate; Adam provides this information over the phone without thinking twice. In his next credit card statement, Adam finds hundreds of dollars worth of fraudulent charges on his account.

Adam is just another in a long line of victims who have experienced credit and charge card fraud. Beyond being just annoying or inconvenient, credit card fraud costs all consumers, even those who have not personally been defrauded. To offset the cost of fraudulently obtained goods and services, stores and credit card companies increase their prices. After being scammed cardholders can also find themselves struggling to repair clean credit records

Do:

• Hold onto receipts to compare to bank statements. Periodically check credit reports to be sure no fraudulent accounts have been opened. 

• Track all credit card information to protect against theft or loss. For each credit card a record should be kept that includes: the issuing bank, contact information, card expiration date, and account numbers.

• Store cards separately from pin numbers. Without pin numbers thieves will be unable to use cards in stores and at Automated Teller Machines (ATMs). Commit pin numbers to memory and destroy the written record for additional protection

• Diligently keep an eye on a credit card when handing over to make a purchase. Make sure to retrieve after the purchase is made, shield it from the eyes of others in the location, and obtain any duplicate receipts made.

• Inform the credit card issuer of changes in address. Many card issuers allow consumers to complete change of address requests through their Website.

• Talk to others on a joint account, about how to avoid credit card fraud.

• Be careful with storing credit cards. Cards are often stolen in gym lockers, the workplace, and in unattended vehicles.

Don't

• Provide information over the phone unless you initiate a call to a trusted merchant. Check the companies phone number, address, and other information with the Better Business Bureau or other trusted source.

• Provide credit card information in order to receive a prize, free vacation, or credit card over the phone. Instead, ask for a written application or notice and carefully check out the company before pursuing the offer.

• Trash credit card account statements or personalized credit card offers that come in the mail. Instead, buy a personal shredder and destroy any mailed credit card offers, old card statements, expired cards, and receipts.

• Leave receipts in the store, ATM, or lying around in a purse or wallet where they could fall out. Place receipts in a secure location in the home until able to review.

• Provide credit card information to unsecured portals online. A sophisticated looking Website does not mean a company is legitimate. Check the encryption, avoid companies that provide offers through unsolicited emails, and check their online reputation.  

If cards are lost or fraud is expected, take immediate action by notifying the card issuer. Banks and credit card companies often have 24-hour, toll-free numbers to handle such emergencies. Follow up the notification with a written letter sent by certified mail. If fraudulent charges show up on the account, send another letter to the card issuer disputing the charges. Filing a police report and contacting the Federal Trade Commission can also be beneficial in stopping the fraud.

• Credit & Charge Card Fraud: Suggestion to protect against being personally defrauded.

• Credit Card Fraud Prevention: Preventative measures can help protect credit and charge card information.

• Credit Card Loss Protection: Being diligent in giving out credit card information and being prepared against fraud are necessary for fraud protection.

• Consumer Action: Publication explaining how consumers can identify and take action against various credit card schemes and frauds.

• Federal Bureau of Investigation: Smart consumer tips for recognizing and preventing credit card fraud.

• Federal Trade Commission: Learn how to guard against fraud or report lost cards and fraudulent charges.

• Identity Theft and Fraud: A look at the relationship between identity theft and credit card fraud.

• Phony Credit Card Offers: Credit card fraud is not just about stealing your information; sometimes schemers offer phony credit cards.

• Plastic Fraud: Understand the different types of credit and debit card frauds that could occur and use these tips to avoid them.

• ScamBusters.org: Common sense tips to help consumers avoid becoming a victim of credit card fraud.

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