Tips to Recognize Credit Card Fraud

by Robert Lamirande

Overview

Credit card fraud occurs when unauthorized charges are made to a victim's credit card. According to an article on credit card fraud from consumer-action.org, the crime can occur when "consumers give their credit card number to unfamiliar individuals, when cards are lost or stolen, when mail is diverted from the intended recipient and taken by criminals, or when employees of a business copy the card or card numbers of a cardholder."
Credit Card Statements

Check your credit card statements when they arrive. Keeping receipts or a log of purchases is important, as it will allow you to check your monthly statements against your own log. Be meticulous in keeping your records Any purchase that appears on your credit card statement that is not recorded in your personal files might indicate an unknown party using your credit card. If your statement is late, you should notify your credit card company immediately. According to an article on fraud by Consumer Action, a missing statement could be a stolen statement. Criminals can use statements to access your information, and in turn, make unauthorized purchases with your credit card. Lastly, be sure to shred or otherwise destroy old statements--unless you store them in a secure location.

Online Statements

Check your online banking statements against your personal records. While transactions don't always appear immediately on your online record, you might still be able to check recent purchases before receiving your paper statement. Consumer Action recommends that customers should avoid signing in automatically to their sites: Signing in manually reduces the risk of having sensitive information intercepted by cyber-criminals.
Company Alerts

According to Consumer Action, many credit card companies have software that helps prevent credit card fraud. Your credit card company may notify you if purchases are made outside of your home town, or if purchases are unusually large. In some cases, your company might invalidate the card until you validate the purchase; in these cases, the company will contact you for confirmation.