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9 Ways to Protect Yourself from Credit Card Fraud

Imagine: you’re sitting at a café sipping on your morning latte, feeling productive as you review your credit report on your phone. Suddenly, your face flushes with dread as you spot a transaction you never made. Panic sets in.

Has your credit card number been stolen? Worse yet, is this a precursor to full-blown identity theft? You’ve heard horror stories – lives derailed, credit scores destroyed, and financial futures hanging by a thread – all because someone got their hands on personal information.

If you’re nodding along, uneasy because you don’t know how to help protect yourself, keep reading. This guide arms you with nine concrete steps to help prevent credit card fraud.

What’s the Difference Between Credit Card Fraud and Identity Theft?

First, let’s get some definitions straight. Credit card fraud and identity theft may sound interchangeable, but they’re not.

Credit card fraud happens when someone gets unauthorized access to your credit card information and makes purchases or withdrawals without your consent. Your financial institutions might catch this early, but there’s a chance they won’t. In this scenario, the thief primarily targets your credit card account.

Identity theft is a broader crime. Here, criminals steal more than just your credit card information; they nab information like your Social Security number and address with the goal to impersonate you.

With this data they can access your credit report, open new accounts in your name, and commit various forms of fraud. While credit card fraud is a subset of identity theft, identity theft can negatively affect your life in far more ways than just maxing out your card.

How to Protect Yourself from Credit Card Fraud

1. Secure Online Practices

In an age where online purchases are the norm, secure browsing is a must. Don’t trust just any website with your credit card information. Always look for “https” in the website URL, which signifies that the site is secure. You’ll also see a padlock icon next to the URL – another good sign.

And let’s talk about public Wi-Fi. It’s tempting to access your credit report or make a quick purchase while you’re sipping on that matcha latte at a café. But public Wi-Fi networks can be hotspots for hackers trying to nab your information.

Always use a VPN when browsing on a public network to add an extra layer of protection to your online activities. Learn more about how credit monitoring helps protect your private information.

2. Strong Passwords and Authentication

We get it; “Password123” is easy to remember. But your credit card account deserves better. Create a strong, unique password that incorporates a combination of letters, numbers, and special characters. And don’t use the same password for multiple accounts; if one gets hacked, all your accounts become vulnerable.

Two-factor authentication (2FA) is another tool in your arsenal. This requires not just a password but a second form of identification, often a text message or authentication app.

3. Regular Account Monitoring

Keeping a close eye on your credit card and bank accounts could reveal unauthorized transactions, helping you possibly catch fraud before it escalates. The “insights” section of your Credit & Debt account helps you track important updates on your financial accounts, like large transactions, recurring payments, and duplicate payments.

4. Be Cautious with Personal Information

Just because someone says they’re from your credit card company doesn’t mean they are. Always be skeptical when someone asks for sensitive information like your Social Security number or birthdate.

Never share such details over the phone or via email unless you’re 100% certain of the recipient’s identity. A common scam involves “debt collectors” calling to verify your personal information. Don’t fall for it. Find out what to do if a debt collector calls you.

5. Use EMV Cards and Contactless Payments

So you’ve been using that same old magnetic stripe card forever, huh? It’s time for an upgrade. EMV chip cards are the new norm and for a good reason. These cards generate a unique transaction code for every purchase, making it harder for fraudsters to clone your card.

Next time you’re offered an EMV card by your credit card issuer, don’t think twice. Contactless payments, like Apple Pay or Google Wallet, are another secure option. These use near-field communication (NFC) to transmit your payment information, reducing the risk of skimming – a method where your card data is copied when swiped through a payment terminal.

If you’re apprehensive about where your card might end up, going contactless is a great way to keep your financial information safe.

6. Be Wary of Phishing Scams

Phishing scams are like those sly magicians you see on TV. They divert your attention with something flashy while doing the dirty work behind the scenes.

In the digital world, these scams often come in the form of fraudulent emails, texts, or even fake websites that resemble trustworthy sources. They’ll ask for your personal or financial information, and boom – you’ve become a victim of credit card fraud.

Don’t take the bait. Always double-check the sender’s email address, scrutinize the language for typos, and never click on links or download attachments from an unknown or suspicious source. If something smells fishy (pun intended), contact your credit card company right away to confirm.

7. Shred Sensitive Documents

You wouldn’t throw a wad of cash in the trash, would you? The same goes for your sensitive documents. Anything that contains your personal or financial information should be shredded before it hits the bin.

Invest in a cross-cut shredder to turn your old bank statements, credit card offers, and other important papers into confetti. This ensures that even if your trash falls into the wrong hands, your identity won’t.

8. Regularly Check Credit Reports

Think of your credit report as your financial health report card. Just as you wouldn’t ignore symptoms of illness, don’t overlook suspicious activity on your credit report. If you see an account you don’t recognize, or worse, evidence of fraud, place a fraud alert immediately and begin the process to rectify it.

Financial tools can send real-time alerts when possible suspicious activity is detected on your credit report. You can’t always prevent credit card fraud, but you can catch it early.

9. Protect Physical Cards

Let’s not forget the actual piece of plastic. Always keep your physical cards in a secure place, and never – under any circumstances – lend them to anyone. You can’t control what someone else does with your card, and you don’t want to be responsible if it’s lost or stolen. Protect your card from unauthorized scanning by using card sleeves or RFID-blocking wallets.

Bottom Line

Phew, you made it to the end! And now you’re equipped with a solid plan to help prevent credit card fraud. Remember, your first line of defense is always vigilance – whether it’s securing online transactions, being skeptical of unknown emails, or shredding sensitive documents.

Credit & Debt Services to Keep You Secure

  • Don’t forget to visit the “Insights” section inside your Credit & Debt account for high-level updates across your accounts.
  • Quick notifications allow you to take action on possible suspicious activity quickly.
  • For an on-the-go lifestyle, get the Credit & Debt mobile app, available on the Apple and Google Play app stores, to track changes to your financial accounts wherever you are.
Madison Ervin

financial coach with clipboard

Get financial freedom! Talk to a financial coach for free!