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Avoiding
Credit and Charge Card Fraud
August 1997
| A
thief goes through trash to find discarded receipts or carbons,
and then uses your account numbers illegally. |
| A
dishonest clerk makes an extra imprint from your credit or charge
card and uses it to make personal charges. |
| You
respond to a mailing asking you to call a long distance number
for a free trip or bargain-priced travel package. You're told
you must join a travel club first and you're asked for your account
number so you can be billed. The catch! Charges you didn't make
are added to your bill, and you never get your trip. |
Credit and charge
card fraud costs cardholders and issuers hundreds of millions of dollars
each year. While theft is the most obvious form of fraud, it can occur
in other ways. For example, someone may use your card number without your
knowledge.
It's not always possible
to prevent credit or charge card fraud from happening. But there are a
few steps you can take to make it more difficult for a crook to capture
your card or card numbers and minimize the possibility.
Guarding
Against Fraud
Here are some tips to help protect yourself from credit and charge card
fraud.
Do:
- Sign your cards
as soon as they arrive.
- Carry your cards
separately from your wallet.
- Keep a record of
your account numbers, their expiration dates, and the phone number and
address of each company in a secure place.
- Keep an eye on
your card during the transaction, and get it back as quickly as possible.
- Void incorrect
receipts.
- Destroy carbons.
- Save receipts to
compare with billing statements.
- Open bills promptly
and reconcile accounts monthly, just as you would your checking account.
- Report any questionable
charges promptly and in writing to the card issuer.
- Notify card companies
in advance of a change in address.
Don't:
- Lend your card(s)
to anyone.
- Leave cards or
receipts lying around.
- Sign a blank receipt.
When you sign a receipt, draw a line through any blank spaces above
the total.
- Write your account
number on a postcard or the outside of an envelope.
- Give out your account
number over the phone unless you're making the call to a company you
know is reputable. If you have questions about a company, check it out
with your local consumer protection office or Better Business Bureau.
Reporting
Losses and Fraud
If you lose your credit or charge cards or if you realize they've been
lost or stolen, immediately call the issuer(s). Many companies have toll-free
numbers and 24-hour service to deal with such emergencies. By law, once
you report the loss or theft, you have no further responsibility for unauthorized
charges. In any event, your maximum liability under federal law is $50
per card.
If you suspect fraud,
you may be asked to sign a statement under oath that you did not make
the purchase(s) in question.
Reproduced
with permission from The Federal Trade Commission.
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