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How to protect your credit card

Credit card fraud is now a multi-million dollar business and identity related theft, often referred to as “the crime of the new millennium”, is an increasing concern to consumers.

Have you been a victim of financial fraud? If so, we’d like to hear your story.

Despite a high rise in the level of consumer awareness Unisys Security Index research has found that many people still fail to protect their private data and are easy prey: 1 in 5 individuals don’t destroy bank or credit card statements before throwing them into the garbage; 1 in 4 never read privacy policies; and 1 in 3 use an easy to remember figure such as their birth date when asked to select a PIN.

How to avoid credit card fraud:

1) Regularly check your credit history report: Checking your credit history is a simple way to catch financial fraud in its infancy. Regularly requesting an updated credit report will enable you to identity unauthorised activity ASAP.

2) Destroy sensitive documents: ID Theft and financial fraud often begins in the garbage. Paper statements provide a thief with important information about you - your address, your accounts and your bank balances.

3) Get your statements electronically: That way you can check your balances and other financial information without having to dispose of paper statements in the garbage.

4) Lock your mail box: Stolen mail remains one of the most prevalent means by which identity theft occurs.

5) Keep tabs on your mail: Knowing when important bills and statements arrive is an easy way of detecting mail theft or redirection when it starts. Check with your financial institution if you don't receive them on time.

6) Always know who you are giving information to: Insist on identity verification from people seeking your personal information. ID Thieves often gain personal information over the phone or internet.

Tags: credit, finance, fraud

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Permalink Reply by John on September 4, 2008 at 4:03pm

But what rules govern use of the information once provided to 'legitimate' requestors (following from point 6)?

For example, I provide my Credit Card details over the phone when booking a motel or other purchase. Who has the authority to request that information (part time office assistant?), where does it go (scribbled on a piece of paper and left on the reception desk for other staff/clients to grab?), how long is it kept (are my CC details still on numerous lists in motels and shops throughout the country?). What details need to be provided (I recently had a businees request my '3 digit security code' when paying an account over the phone!).

The bottom line to all this is that business seems to be getting very demanding and I'm not convinced they have the right (or training) to ask for such details.

Are there guidelines or other means by which this type of thing is regulated. If the information I provide in this way is missused, who is liable?

I'd personally much rather provide CC details over the internet where I can at least see levels of security and maintain a record of who I'm dealing with, than over the phone where there doesn't seem to be any guarantee of secure dealings.

JFP ...

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Permalink Reply by Matthew Reader on September 4, 2008 at 8:23pm

I totally agree JFP - I find the internet far more secure than leaving my details with random people over the phone, or even having my card swiped. Surely that's the worst because the person then has your details forever!