Credit Card Fraud is On the Rise

Date December 29, 2008

With the downturn of the economy, the holidays, and for whatever other reasons, credit card fraud is increasingly becoming a problem. Whether your card is stolen, or skimmed, thieves are using innocent consumers’ cards to buy gas, shop at Wal-Mart,  buy groceries, and more.

What is skimming? Skimming is the theft of credit card information. It is typically an “inside job” by a dishonest employee of a legitimate merchant, usually a restaurant or bar, where the employee actually walks away with your card. The thief can get a victim’s credit card number by photocopying receipts or using a small electronic device (skimmer) to swipe and store hundreds of victim’s credit card numbers. The thief may also use a small keypad to unobtrusively transcribe the 3 or 4 digit Card Security Code which is not present on the magnetic strip.

What can you do to protect yourself? Sometimes it is truly out of your hands – the thieves are tricky and as you read above, can capture your credit card information without your knowledge. But there are steps you can take to protect yourself and if you are a victim of fraud, to nip it in the bud:

  • Pay with cash when you can. If you are unsure about restaurants, bring enough cash so you won’t have to use plastic.
  • Get online banking. With online banking, you can check your credit card account (depending on the services offered by your financial institution) as often as you like. Check it weekly for any charges not incurred by you.
  • Check your credit card statement. If you’re like most people, when you receive your credit card statement in the mail, you toss it aside, or throw it into your “taxes” pile. Make sure you open it up and check it for any unauthorized charges.
  • Keep your cards in a safe place. Do you know where all of your credit cards are? Make sure you keep them safe in a location that you will remember, if it isn’t your wallet. And always check to make sure they are still where you left them!

What about Debit Cards? Yes, debit cards can be compromised as well. Take the same precautions that you would with your credit card.

Most financial institutions and credit card companies now have fraud detec tion services. If there is a transaction on your account that is out of the ordinary, they will most likely call you to verify that it was, in fact, you that made the transaction.

If you discover that there was fraud on your account, notify your financial institution immediately. They can deactivate the card so it can’t be used anymore, and issue you a new card. They can also get the fraud recovery process started for you.

Share these tips with your friends and families. Don’t let these thieves win! Protect yourself, and your plastic, and have a safe, healthy, and happy 2009!

Questions or Comments? E-mail me at blogger@matadorsmoneymatter.com.

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Category Posted in Alerts & Scams, Tips

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