Tips To Avoid Credit And Debit Card Fraud

There are many benefits to swiping a plastic card in order to complete financial transactions, including convenience, the reduced need to carry cash, worldwide acceptance, and direct access to money in bank accounts 24 hours a day. However, carrying a debit or credit card also comes with security risks that are a concern to both cardholders and issuers of bank cards.

Card issuers are taking steps to increase the security of funds that can be accessed by bank cards and major improvements have taken place to make using debit and credit cards a safer option than ever before.

The biggest risk with owning credit cards is the risk of fraud—someone acting as if they’re you in order to access your funds and purchase goods or services with them.  Most people who carry debit or credit cards can relate to the feeling of misplacing a wallet or a credit card and panicking at the thought of your card being used without your knowledge.

It is estimated that credit card fraud costs cardholders and issuers in excess of $500 million every year.  Credit card fraud is increasing as more transactions are carried out electronically over both telephone lines and the Internet.

Fraud can occur in a number of ways when it comes to bank cards.  The most obvious way is that if a card is lost or stolen and ends up in the hands of someone willing to commit fraud.  In addition, identity theft is one of the fastest growing crimes in the United States.

To steal an identity, thieves use various means to gain access to a consumer’s personal information, including full name, date of birth, and social security number.  With this information, they apply for credit cards and are often able to spend thousands of dollars before the fraud is ever detected.

There is also a type of fraud called “no card” fraud, in which transactions are carried out online or by telephone using a credit card number without ever having to show a merchant the actual credit or debit card.

There are several steps that consumers can take in order to prevent becoming a victim of credit fraud.  A few good ideas include:

1. Always sign the back of every bank card as soon as it is received.  Merchants are responsible for ensuring that the signature provided at the point of sale matches the cardholder signature on the back of the card.
2. Review card and banking statements regularly, watching closely for any transactions that are not familiar to you.
3. Choose a PIN number that is completely unpredictable, and never keep that number written in a place where your credit card is stored, such as a wallet or a purse.
4. Call your bank or credit card issuer immediately to report any suspicious activity.  Catching fraud early can be the difference in saving thousands of dollars.

These simple steps can save a great deal of time and money in protecting yourself from becoming a victim of fraud.