Tips for Credit Card Fraud Prevention

Preventative measures will help keep your credit card and personal information safe. Here are some tips you can use to prevent credit card fraud from ever occurring.

1. Keep It Secure

Keep your card, your pin and your account information in secure locations. Use a pin number you can remember without writing it down. Record the credit card account, expiration date, security code and toll-free phone number on the back tucked safely in a fireproof lock box (retail: about $25) or a safe.

Sign the back of your credit cards and write "See ID," which some merchants will honor. Only type in your credit card number into secure websites (https rather than http) when making online purchases.

2. Check your Credit Card Statement Weekly

Access your credit card statements online through your bank or credit card provider. Create a user name that is not the name on your card (most credit card companies allow this online), and use a secure password containing both lowercase and uppercase letters as well as numbers and symbols. Log on weekly to check your balance and verify that current credit card purchases are yours. Call your credit card issuer immediately if you see any erroneous charges.

3. Don't Leave Receipts Behind

Minimize the chances of leaving a breadcrumb trail of your financial transactions, including where you eat and shop, by always taking your paper receipts with you. This can be useful if your card is ever misused by people who have access to add gratuities to your credit cards bills.

4. Use Credit Cards Wisely

At gas pumps, rather than use a credit card at the gas pump, where skimming could occur, use a low-limit gas-only credit card or key swipe at the gas pump and pay it off your balance monthly to avoid interest charges.

Never give out your credit card number or social security number to any incoming caller over the phone. If the caller claims to be from your bank or credit card company, end the call and call your financial institution directly instead.

5. Extra Protection: Alerts

Sign up for any free alerts that let you know of any credit card activity that is out of the ordinary. Some credit card issuers may charge a nominal fee for this service.

6. Report Lost Cards Immediately

It doesn't take long for someone to rack up charges at a restaurant or at a gas pump using your lost credit or debit card. Report a lost or stolen card as soon as you notice it. Legally, you are protected against the charges incurred after a reported theft. Federal law allows for a $50 maximum liability, according to the FTC.

7. Reduce Papers, Destroy Before Tossing

Consider receiving credit card statements online only rather than paper statements, if you have no secure way to store paper statements or to destroy them. Use a paper shredder or burn old statements, to diminish the chances of someone rifling through your paper recycling or trash to find your financial account information.