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Credit Card Fraud: How to avoid it


As online shopping becomes more popular with savvy consumers around the world, an unwelcome side-business has also increased in activity: credit card fraud.

And while credit card fraud is certainly not limited to the online marketplace, internet users experience more than their fair share of dodgy transactions every day.

There’s no way to completely protect your credit card details when shopping online, but there are plenty of things you can do to minimize your risk.

Your first step towards protecting yourself against credit card fraud is quite straightforward: be extra, extra careful when using your credit card online. This means never inputting your credit card details unless you’re certain the website is trustworthy and reputable. Most online check-out systems allow you to pay via third party processors such as PayPal, which offers an extra layer of protection against credit fraudsters, so consider using these wherever possible.

Also, never respond to emails that ask you to follow certain links and enter confidential information – even if the website appears to be a trusted site, such as eBay or Amazon. Internet fraudsters have been successful in developing sophisticated software and websites that look just like the real thing, so never assume that the link can be trusted. Instead, close the window and re-open a new browser, manually type in the web address, and proceed with your transaction this way.

It’s prudent to remember, as well, that emails are not secure, so you should think very carefully before sending credit card information via email.

In saying this, you should keep in mind that the internet can also help you to avoid becoming a victim of credit card. If you regularly check your account balance online – ideally, at least once per week – you can monitor your transactions and, hopefully, identify any unusual purchases early on. When you receive your monthly statement in the mail, you should also consider cross-referencing it with your receipts.

In an offline environment, never let your credit card out of your sight. Skimming – where credit card details are copied, and then duplicated onto new cards – is becoming more and more common, but there are steps you can take to minimize this risk.

If you’re in a restaurant, for example, don’t hand your card over to the waiter; instead, walk up with him or her to the cashier and hand over your card yourself. If you’re in a high-end restaurant and you’re embarrassed about transacting this way, apologize and tell the waiter that you’ve been the victim of credit card fraud in the past, so you prefer not to let your card out of your sight. It’s better to be embarrassed for a few minutes, then to find out that thousands of dollars worth of transactions have been illegally charged to your card!

What if your account has been compromised?

If you suspect illegal transactions have been charged to your credit card, inform your card provider immediately. They will immediately cancel your card and issue a fresh card, to prevent any further transactions from being applied. Also, if they investigate and do find that unlawful transactions have occurred, your account will be reimbursed.

Peter Carville is a freelance article writer who writes for Financial Tips about the current financial news and the credit crunch.

Article Source: Credit Card Fraud: How to avoid it

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This entry was posted on Tuesday, June 9th, 2009, 2:19 am and is filed under Credit. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.

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