30 Tips for online credit card fraud and scam prevention

30 Tips for online credit card fraud and scam prevention

This article gives you information regarding credit card online fraud and scam prevention. How to prevent credit card online fraud and scam? We just want to save you from online credit card fraud and scams.

Everyday we encounter many types of credit card scam stories. A lot of credit card scams happen on phone. There are a lot of stories of internet credit card frauds and scams. So what to do with the credit card frauds?

What is a credit card fraud?

Credit card fraud is a form of identity theft that involves an unauthorized taking of another’s credit card information for the purpose of charging purchases to the account or removing funds from it.

Types of credit card frauds

1. Application Fraud: Application fraud refers to the unauthorized opening of credit card accounts in another person's name. This may occur if a perpetrator can obtain enough personal information about the victim to completely fill out the credit card application, or is able to create convincing counterfeit documents. Application fraud schemes are serious because a victim may learn about the fraud too late, if ever.

2. Account Takeovers: Account takeovers typically involve the criminal hijacking of an existing credit card account, a practice by which a perpetrator obtains enough personal information about a victim to change the account's billing address.  The perpetrator then subsequently reports the card lost or stolen in order to obtain a new card and make fraudulent purchases with it.

3. Skimming: Another common method used to achieve an account takeover is called “skimming.” Skimming schemes occur when businesses' employees illicitly access to customers’ credit card information. These employees then either sell the information to identity thieves or hijack the victim's identities themselves.

30 Tips of preventing credit online card frauds and scams

1. Sign your credit card as soon as you receive it.

2. You will also receive the PIN number after a few days. Keep your PIN/account number safe.

3. Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. Try not to let your credit card out of your sight whenever possible.

4. Every time you use your credit card, be aware when your credit card is being swiped by the cashier so as to ensure no misuse of your credit card takes place.

5. When making payment with your credit card, make sure you check if it is your credit card that the cashier has returned.

6. Do not forget to verify your purchases with your billing statements.

7. After using your credit card at an ATM, do not throw your receipt behind.

8. Do not discard your credit card statements or receipt that has your PIN or account number. Shredding or burning them would be wise.

9. Credit Card Scams by Phone: Never give your credit card information over the phone, unless you are really sure you can trust them. Be very careful to whom you give your credit card. Don't give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you're told there has been a 'computer problem' and the caller needs you to verify information.) Legitimate companies don't call you to ask for a credit card number over the phone. Same in the case while purchasing online.

10. Save receipts of payments made through credit card and check monthly statements and check for billing errors, if any.

11. If your credit card is damaged, destroy it and request for a duplicate card.

12. Incase you lose your card, inform your credit card company as soon as possible. Also make a police complaint.

13. Always void and destroy incorrect receipts.

14. Shred anything with your credit card number written on it.

15. Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.

16. Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately.

17. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

18. Ideally, it's a good idea to carry your credit cards separately from your wallet -- perhaps in a zippered compartment or a small pouch.

19. Never lend a credit card to anyone else.

20. If you move, notify your credit card issuers in advance of your change of address.

21. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

22. Ideally, it's a good idea to carry your credit cards separately from your wallet -- perhaps in a zippered compartment or a small pouch.

23. Keep a list in a secure place with all of your account numbers and expiration dates, as well as the phone number and address of each bank that has issued you a credit card. Keep this list updated each time you get a new credit card.

24. Only carry around credit cards that you absolutely need. Don't carry around extra credit cards that you rarely use.

25. Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account -- reconcile it monthly. Save your receipts so you can compare them with your monthly bills.

26. If you find any charges that you don't have a receipt for -- or that you don't recognize -- report these charges promptly (and in writing) to the credit card issuer.

27. Never respond to emails that request you provide your credit card info via email -- and don't ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called 'phishing' scams.

28. Never provide your credit card information on a website that is not a secure site. This is the main source on internet credit card fraud and scam.

29. Check your financial statements regularly, keeping an eye out for any unfamiliar activity. If you find something irregular, report it ASAP.

30. If you're especially concerned about identity theft, consider freezing your credit report, which prevents hard inquiries without your permission.