Tips for Avoiding Credit Card Scams

31 August, 2009

When you think of credit card fraud, what comes to mind? You likely think of lost and stolen credit cards or online hackers. But sometimes credit card scams are less obvious, and consumers like you are tricked into giving their credit card information away to unscrupulous sources. How do you protect yourself from that kind of credit card fraud?

Here are some tips to avoid more subtle types of credit card scams you may come across, showing you how you can protect yourself from suspicious activities and requests:

1. Only give credit card information over the phone if you made the call.

If someone calls you and asks for your credit card information (to pay a bill, try to get you to make a purchase, etc.) you should kindly refuse. If it’s a legitimate request, such as from a creditor you owe money to, then look up their official number on your latest account statement and call them back. Then you can be sure you’re connected to the company you want to pay and not to a scammer who purchased your phone number in some marketing list. Don’t just ask the person on the phone for their number in order to call them back — you don’t really know what number they’re giving you. Verify it through a third party source.

2. Be wary of very small charges online or over the phone.

While there are legitimate small purchases you might want to make online or over the phone, be careful and research the company first. If something sounds too good to be true, it probably is. For example, if a website says you can buy information for a low price of a dollar or so (such as job scams where you pay for information about the “job” before applying), they might be luring you in with a very low charge just to get your credit card information.

3. Never send your credit card information to someone via email.

Any legitimate company asking for credit card information online should be able to accept your information through a secure online form. They will not ask you to simply email them your credit card information in the body of an email message.

4. Don’t use your full credit card number for verifications.

You might occasionally have to verify your identity with companies you do business with (where your credit card information is already on file). Employees looking at your account don’t always get to see your full credit card number (they’ll only see the last several digits for your security). Your name, address, and the last four digits of your credit card number are adequate to make sure you’re the person listed on the account. If you’re asked for the full number, refuse. It could be a way for an unethical employee to get their hands on credit card numbers they’re unauthorised to have.

5. Always shred your credit card statements before disposing of them.

One of the oldest types of credit card scams stems from thieves simply searching for discarded personal papers. With your credit card statements they may get your account number, name, and address. Do you really want that in the hands of a stranger? Destroy them or keep them safely filed away.

Credit card scams aren’t always obvious. Some scammers are very good at appearing to run legitimate operations. While the above steps can go a long way towards preventing these types of credit card fraud, remember that the best thing you can do is to thoroughly review every credit card statement promptly. Then contact your credit card company if any charges (no matter how small) don’t look familiar or correct to you.

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