Today, credit card fraud is big business. Most fraud happens because someone steals credit card information.

Protect Your Credit Information Credit cards are more convenient than cash and most of us couldn’t function well without them. Yet, we should take precautions to prevent thieves from enjoying this same convenience at our expense. Today, credit fraud is big business. We may think we are being careful with our plastic, but many of us aren’t guarding our financial information as much as we should.

Most fraud happens within 48 hours of the card theft. In the past, most credit card fraud was due to lost credit cards. Today, more fraud happens because someone steals the information. Not only is your card number valuable, but so is the expiration date. Armed with your credit card information, thieves can run up bills and ruin your credit rating. They can also assume your credit identity and cause nightmlares you can only imagine!

How can credit fraud happen? To use your credit card, a thief must have either your actual credit card or the card number and the expiration date. How can anyone get this information?

• Someone steals your purse or wallet. Or, someone uses your credit cards without your knowledge or permission.

• A fraudulent telemarketer calls you and asks for information from your credit card.

• You receive a letter or postcard asking you to claim a prize by calling a 900-number. When you call, they ask you for your credit card number and expiration date to “verify” your identity.

• Someone goes through your garbage and finds old billing statements, credit card receipts, printed credit card access checks, or an offer for a new, pre-approved credit card.

• A dishonest clerk makes an extra imprint from your credit card and creates another charge after you leave.

• A thief steals outgoing or just-delivered mail from your unprotected mail box.

Be prepared if you lose your credit cards The average credit card user has 8 to 10 credit cards. What would you do if you lost all of your credit cards? Who would you call? Do you have your card numbers recorded somewhere? Use the form below to list all your credit card information and the toll-free numbers to call in case a card is missing or stolen. Add lines if you have more cards. With this information, you don’t need credit card insurance. Keep this list hidden in your address book or with other important papers for easy reference, but away from prying eyes.

Credit card precautions

Preventing credit fraud is not hard. Just keep the following precautions in mind.

• Limit the number of cards you carry. Only carry one or two cards at a time. Keep others in a safe place at home. Never lend your cards to anyone.

• Cancel cards you don’t use or that cost you more than other cards. Cut up the card and send a letter to the card issuer. Ask that they notify the credit bureau that the card was canceled “at the customer’s request.” Keep a copy of your letter.

• Treat your credit cards like cash. Don’t leave credit cards or receipts where someone could see your credit card information. Make sure the clerk makes only one imprint from your credit card. If he or she makes a second, ask for the first. When you get a new card, cut up the old one before you throw it away. Check first that you can use your new card immediately. Sign the new card at once with ink. Do not write your PIN number on your card. Memorize it! And, don’t forget to notify credit card companies when you change your name or address.

• Reconcile your receipts to your statement. Save your receipts in a special folder, envelope, or pocket of your wallet. When your billing statement arrives, open it promptly. Check to see that the charges on your bill match your receipts. If you see something on the billing statement that seems wrong, such as a charge you don’t remember making or a wrong amount, call the card issuer immediately. Follow up with a letter detailing the problem.

• Act fast if your card is lost, stolen, or used fraudulently. Call the card issuer right away. Each issuer usually has a 24-hour toll-free number for reporting losses. It’s usually listed on each credit card statement. Follow up the call with a letter. By law, once you report the loss, you have no further liability for unauthorized charges. Under federal law, your maximum liability for credit cards is $50 per card. This can add up if you lose several cards. If you report the loss before the cards are used, you can’t be held liable for any unauthorized use.