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How to Protect Yourself From Credit Card Fraud

By Nadine Cheung Posted 10:00AM 01/15/13 Savings Experiment |
Savings Experiment: Preventing Credit Card Fraud

How secure are you when using credit online?

Did you find our video on credit fraud helpful?

The Internet has made shopping more convenient, but identity theft is on the rise. So, how can you prevent your credit card number from being stolen, while continuing to enjoy the advantages of buying things online?

According to Javelin Strategy & Research credit card fraud has risen 87 percent since 2010, resulting in a total loss of $6 billion. Jim Van Dyke, Javelin's president and founder tells NBC News that this is because criminals are rapidly changing their identity theft methods.

There are steps you can take to protect yourself, though. First, use a credit card as opposed to a debit card. While the Internet may be a place from which to steal your identity, using a credit card can protect you in the long run. LearnVest reports via Identity Theft Resource Center that "the safest way to shop on the Internet is with a credit card." If your card number is stolen, you are protected under the federal Fair Credit Billing Act, which limits your liability at $50. Meanwhile, debit card damages are capped by law at $500.

"Phishing" is still popular on the web, and now on your mobile phone, where you can be asked to "verify" your personal information for various reasons. Watch out for suspicious emails, phone calls and text messages asking for your account info, which legitimate institutions would never do.

Credit FraudFinally, invest in a shredder. Experian.com says that sifting through trash is still one of the most popular ways for criminals to obtain your personal information, so shred any document that includes any identifying information. It's a no-brainer.

The ease and convenience of online shopping shouldn't be hampered by those with criminal intentions, but it's important to take measures to protect yourself. That way you can shop and save, safely.
Tagged: credit card theft, credit cards, how to prevent credit card fraud, identity theft stories, lifestyle, online shopping risks, Savings Experiment, SavingsExperiment, stolen credit card numbers

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plymouthranch

Why aren't banks and merchants held liable under Tort Law when they fail to properly identify a credit card user? How did the liability get shifted to the innocent victim? This is the way to stop credit card fraud and identity theft, lay the legal fault on the banks and merchants for accepting payments from fraudsters.

February 04 2013 at 9:34 PM Report abuse rate up rate down Reply
John

I resolved this issue! I don't USE credit cards!!

January 29 2013 at 7:17 PM Report abuse rate up rate down Reply
fsmolet

One things to remember is to constantly check your credit report. keep your credit in excellent shape. If you have any negative items fix them ASAP. best to use a good and reputable company. A few out there but use the ones with the best reputation like Lexington Law. They have been in business over 20 years. 

January 28 2013 at 11:31 PM Report abuse rate up rate down Reply
samuel

By my experience, the best way to avoid credit card fraud is to STAY AWAY FROM CITIBANK! Without notice they garnished my wages, then sent me to a collection agency for the full price. Tried to make me pay the full balance twice without any notice. I told them to go ahead and send me to collections, they will never see another dime of my money.
These people are white collar criminals.

January 24 2013 at 12:02 AM Report abuse rate up rate down Reply
daniel

I was once involved in a fraudulent use of my credit card. Forunately, I always check my balance every otherday or so. In this instance I noticed several charges to my credit card. I immediately called my card company to cancel the card. It was then I called several companies my card was used at and asked the manager for information on what was ordered. Sure enough, I found out it was my car-pooler the one that took my card . Forunately he got himself fired from the company and that solved my fraud problem.

January 23 2013 at 12:33 PM Report abuse +1 rate up rate down Reply
mbernst126

I have 2 debit cards. I use one for purchases and keep a limited amount of money in that card. I transfer money to that account as needed.

January 23 2013 at 11:46 AM Report abuse rate up rate down Reply
arenadood

We use PayPal when we shop but do not store our Info anywhere on line.

January 23 2013 at 10:50 AM Report abuse rate up rate down Reply
Dan Peguine

We also recommend that you use BillGuard (https://billguard.com) to catch those sneaky small amounts early before the hackers try higher amounts. At BillGuard we help you find fraud (automatically) but also other charges that you don't want (like forgotten subscriptions, for example).

January 23 2013 at 7:06 AM Report abuse rate up rate down Reply
xashevillenative

There is no way to protect yourself against credit card fraud when living in the good ole U.S. of A. Thugs everywhere you go.

January 19 2013 at 10:16 AM Report abuse -1 rate up rate down Reply
angelabfla

I recommend using Pay Pal for online shopping. More and more stores are accepting Pay Pal for payment. I have been using it for about ten years now, and it's very safe and secure. They have your credit card on file, and no one ever sees it. All charges go through Pay Pal with the card numbers never revealed. No, I don't work for Pay Pal or eBay, or any of their subsidiaries, I just feel it's a really good, safe way to shop.

January 18 2013 at 12:46 PM Report abuse +1 rate up rate down Reply

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