Credit Fraud
Anyone with a credit card can become a victim of credit card fraud or be saddled with a negative credit report because of fraud. There are numerous ways for thieves to obtain your credit card number and make thousands of dollars worth of purchases without your knowledge. Fortunately, laws limit the credit cardholder's liability to $50. If $1,000 is charged to a credit card account without authorization, the cardholder pays only $50 to the credit card company.
SIDEBAR: Federal law does not place a duty upon the cardholder to report the theft or fraudulent charge within any amount of time.
TIP: The $50 maximum liability amount is for each card. If seven credit cards are stolen and used, the cardholder's liability would be $450 total.
How can I decrease the risk that my credit card will be used without my authorization?
You can do several things to prevent card theft as well as someone obtaining the credit card number.
- Carry your credit cards only when you will be using them so that if your wallet or purse is lost or stolen the credit cards will not be stolen as well.
- Sign your credit cards so that your signature can be compared.
- Call your credit card company and ask them to put a computer notification on the card that requires picture identification whenever a purchase is attempted.
- Never sign a blank charge receipt. If you do, mark through all the blanks and keep your copy.
- Have bills sent to your office if possible to avoid residential mail thefts.
- Immediately review your credit card statement when it arrives.
- Never give your credit card number to anyone over the phone.
- Do not respond to e-mails that ask for credit card information.
- Buy items over the Internet on secure sites only (symbolized by a lock icon on the bottom toolbar of the page).
TIP: Instead of signing your name on a credit card, write "photo ID required" so that the store clerk asks for ID.
What is a fraud alert?
It is a special notice placed on your credit report so that any company asked to give you credit will know your information has been stolen. A thief who is attempting to obtain additional credit cards in your name will not be able to get credit if a fraud alert is in place. Companies must personally authorize credit with you over the telephone.
TIP: You must notify the three credit bureaus that your credit cards have been stolen to obtain a fraud alert.
Experian
PO Box 2104
Allen, TX 75013-2104
1.888.397.3742
Equifax
PO Box 740241
Atlanta, GA 30374-0241
1.800.997.2493
Trans Union
PO Box 1000
Chester, PA 19022
1.800.888.4213
If I believe my credit cards have been stolen, should I file a police report?
Yes. The report will be useful in proving to the credit card company that you did not authorize any charges after the card was stolen.