Posted: June 12, 2009

Summary:
Credit and debit card fraud costs cardholders and issuers hundreds of millions of dollars each year. Once more limited to those who had lost wallets or stolen purses, today there are numerous card fraud avenues.

Details:

Credit and debit card fraud costs cardholders and issuers hundreds of millions of dollars each year. Once more limited to those who had lost wallets or stolen purses, today there are numerous card fraud avenues.

For example:

• Someone goes through trash to find discarded receipts or carbon and then account numbers.
• A clerk makes an extra imprint from your credit or charge card and uses it to make personal charges.
• Internet fraud - skimming, phishing.

Although it is not always possible to prevent card fraud from happening, here are a few tips for your members to make it more difficult for a thief to capture card numbers and minimize the possibility of card fraud. Consumer education is an important way to prevent fraud losses for both your members and your credit union.

Do:

• Sign your card as soon as it arrives.
• Carry your cards separately from your wallet, in a zippered compartment, a business card holder or another small pouch.
• 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.
• Report any questionable charges promptly and in writing to the card issuer.
• Notify card companies in advance of a change in address or if you are planning a trip.
• Be cautious when responding to special offers, especially through unsolicited e-mail.
• Be cautious when dealing with people/companies from outside your own country.
• Keep an eye on your statements. Check them online to catch suspicious transactions quickly. Save receipts and compare them with your statements.
• Check your credit report. Everyone is entitled to one free copy each year from each of the major credit reporting bureaus and can be ordered from www.annualcreditreport.com.
• Opt for Paperless Statements so you don't have to worry about someone stealing your private information right out of your garbage can or mailbox. Your statements will be e-mailed to you online. (If you do get paper statements, shred your statements).

Don't:

• Don't lend your card to anyone.
• Don't leave cards or receipts lying around.
• Don't sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.
• Don't write your account number on a postcard or the outside of an envelope.
• Don't give out your account number over the phone unless you're making the call to a company you know as reputable. If you have questions about a company, check it out with the Better Business Bureau.
• Don't give out your credit card number online unless the site is a secure and reputable site.
• Don't use the same online username and password for everything (if it falls into the wrong hands, a thief would have access to everything),
• Don't let retail Internet sites remember your credit card number for future purchases. Though it's convenient, it is also possible that hackers could steal your credit card number.