Credit Card Security Precautions

By Law & Legal & Attorney Last updated Friday, May/24/2024

Take extra security precautions with your credit cards.credit card and hand image by Warren Millar from Fotolia.com

Credit cards have become an essential part of most people's lives. They are a convenient method of payment without cash, but this convenience comes with great risks. As e-commerce gains ground globally, the risk of credit card fraud has intensified. Someone only needs to know the card number to go on a spending spree. Fortunately, there are several security measures you can take to guard against fraudulent use of your card.

Keep the Card Safe

Once you are issued a credit card, endorse it immediately. Memorize the PIN (personal identification number) and destroy the paper on which it was written. If you are afraid you'll forget the PIN, keep the paper containing the number separate from the card. That way, if someone gets your card, he won't get the PIN. Photocopy both sides of the card and keep the copies safe. This will preserve the card's numbers so in case you have to report it lost, you can do so promptly. Do not carry many cards with you to avoid losing them all. If you lose one card and still have others in the house, you will have cards to use before it is replaced.

Report the loss of a card immediately, because card thieves normally use stolen cards within 48 hours. If the card is used by someone before you report, you can't expect to be compensated. But if it is used after you have already reported the loss, you are not liable for the charges.

Whenever you make a purchase at a gas station or supermarket, make sure you observe everything the cashier does with the card. Be sure he does not swipe the card twice or write your card number somewhere. You should also keep all credit card receipts so you can compare them with the monthly bill. If the amounts on the receipts and the bill differ, it will be easy to trace the source of the fraud.

Many scammers perform mind games on card owners. Someone who gets your card may call you to say he has found your card and will bring it to you. Many people relax and fail to report the loss of the card since it has been found and they have been told it will be returned. The scammer uses that time to make purchases with the card, assuming you won't have the card blocked.

Be careful which websites you shop from. Some websites are run by scam artists who will steal your credit card number and use it for purchases. Only deal with reputable websites. Also, it is better to register and pay online with PayPal to reduce risk to your card (see Resources).