I have never had credit card theft happen (thankfully), but I know many people that have. This can be so scary and many people do not even know how to properly help avoid credit card theft. Here are some great ways to help you avoid this from happening.
How to Avoid Credit Card Theft
By: Mrs. Not Made of Money
Swiping a card to pay for your purchases has its up sides. It’s easy, convenient, fast, and you don’t need to carry cash with you every time you go shopping. But using your credit card does carry the risk of having it stolen. We all tend to believe that credit card theft, identity theft, and misuse of credit cards only happens to somebody else. The reality is that it does happen every day to regular ordinary folks, just like you or me. Credit card companies are usually quick to take action and block your card if you report a theft. You will not be liable for any payments made against the card once you have reported it. But why wait till something like this happens to you? The best way would be to take the right precautions so you never have to be in a credit card theft situation at all. Here are a few preventative meaures you can take to reduce your risk of credit card theft:
Be Careful when Shopping Online
Shopping online just re-defines comfort. You can browse an online catalogue and order right away, paying with your credit card. But before you indulge yourself remember that the internet is a haven for fraudsters and hackers. Give your credit card number only if you’re sure that the site is absolutely safe and secure. If the site looks suspicious, it’s really not worth the trouble.
Keep your Documents Safe
Your old credit cards, monthly credit card statements, and even the receipts that you get with every payment are potentially dangerous if you’re not careful with them. Your credit card and account number is available on these and could be used to make purchases against your card. Never leave these documents lying around and remember shredding them is the safest way to dispose of them.
Check your Monthly Statements
Your monthly bill comes with a detailed account of your purchases for a reason – that is so you can read it and check that everything is in order and you’re paying for only what you purchased. Go through your monthly statement thoroughly, cross-check charges with your receipts, and report any discrepancy immediately.
Keep your credit card safe
Even if you are a regular at a store or restaurant, it does not mean that your card cannot be stolen there. Make sure that you collect your card and your receipt after every payment. In your wallet keep your card separated from your cash so there is little chance of you dropping it somewhere inadvertently.
Keep important details in a safe place
Important details like your credit card number, date of expiration, phone number of the issuing company, etc. should be noted and kept in a secure location. In case you lose a credit card (or have your wallet stolen), this information will help you contact your credit card company so you can give them the required details to block your card instantly. The easiest way to do this is to make a photocopy of the front and back of your card. Store this in a safe place at home with your other financial papers, such as in a fireproof box or file cabinet.
No Multiple Credit Cards
If you use more than one credit card you need to be extra careful because sometimes you may not notice the missing card immediately. Try and carry only one or two cards at a time so you can keep track of them. If you’re not using a card, keep it somewhere safe at home, or close the account if you don’t think you need it at all. Not having an extra card is much better than losing it.
Credit card theft could mean actual monetary loss and may even reflect on your credit score if you’re unable to spot it in time. The key is to be extra cautious at all times because the convenience of cash-free shopping could also mean big losses if you don’t take care.
How to Avoid Credit Card Theft was reprinted with permission from NotMadeofMoney.com