Though utilizing your credit card for most purchases, both online and in-store, is convenient, instances of identity theft and fraud are growing as result â€” reaching an all-time high for American consumers in 2016. 1
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From security breaches to more targeted thefts involving credit card information, consumers have to become more vigilant about protecting themselves. Here are four great tips that will help consumers in avoiding credit card theft and fraud.
1. Create strong passwords.
Since your password is the gatekeeper to your financial information, make sure you take the time to make it Â strong and nearly impossible to guess. Combinations of numbers, letters (uppercase and lowercase) and symbols are best, and a longer password is better than a short one. 2 The strongest passwords are random rather than using words you can find in the dictionary.
Also,Â you should change your passwords often. Some security experts advise that changing passwords monthly, or even weekly, is a good move that will help prevent your account from being compromised.
2. Donâ€™t share financial information with any unknown sources.
It might seem like common sense not to share your credit card or other financial information online, but internet theft has become increasingly sophisticated and sometimes hard to detect, including a variety of â€śphishingâ€ť schemes. Spoofed email and websites, which may look on the surface to be identical to the legitimate ones, try to lure users into sharing passwords and other information.
Be skeptical of any email claiming to be related to your financial institution. Check the sender information carefully â€” ensure that the email address matches the company name. Donâ€™t automatically click the urls in the email â€” instead copy and paste them into a separate browser window to see if they match up with the alleged company.
Finally, donâ€™t share your financial information in an email or by phone â€” and if you have any doubts about the legitimacy of a website, email or phone call soliciting information about you, disconnect and get independent confirmation. You should always be able to contact your credit card company or financial institution in order to do this. Itâ€™s an extra step, but itâ€™s better to be safe than sorry. Bear in mind that most financial institutions would never ask you to share passwords, account numbers, or other sensitive information through email.
3. Donâ€™t use public Wi-Fi connections for purchases or banking.
Using unprotected Wi-Fi connections while at a coffee shop or out in any other public place can be a scenario ripe for credit card fraud, since the unprotected connection can allow hackers to access the information youâ€™re transmitting.
Instead, while working outside of your home or officeâ€™s protected Wi-Fi connection, use a virtual private network (VPN) to encrypt data. Even when youâ€™re at home, always be sure that when sending financial information such as credit card numbers that you are connected to a secured website. You can recognize a secured website by looking for â€śhttpsâ€ť as the beginning of the URL in the browser address bar.
4. Scrutinize your statements.
You may be comforted by the paper trail created by your credit card through receipts and online statements and lulled into a false sense of security. Like many Americans, your life is probably busy and stressful, and you might not always make time to review your statements carefully.
The problem is that credit card scammers are banking on this fact. Often, once they get a hold of your credit card information, they will begin making small, insignificant charges â€” ones that the average credit card holder might not pick up on while skimming over a statement. Over time, these kinds of charges can add up to thousands of dollars â€” all because you werenâ€™t as vigilant as you shouldâ€™ve been.
So take the time to go over your statements on a regular basis. Many financial institutions and credit card companies offer apps that allow customers to check their statements daily. Match up your receipts against each charge, and watch out for recurring charges that seem suspicious. You can flag any suspicious charges or follow up with the merchant for clarification.
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But if you do suspect fraud â€¦
Donâ€™t hesitate to act quickly at the first sign of fraudulent activity. Consumers generally arenâ€™t liable for fraudulent charges, but you mustÂ notify your company immediatelyÂ after you discover the activity to minimize losses. 3 Call your credit card or financial institution and alert them of the problem so that they can freeze your card from any future theft. Theyâ€™ll walk you through the appropriate steps to take, and hopefully help you prevent a similar situation in the future.