( Excerpt Courtesy - FTC: Public Reference Document )
Quick Look
- Sign your new cards as soon as they arrive.
- Avoid signing a blank receipt, whenever possible.
Draw a line through blank spaces above the total
when you sign card receipts.
- Save your card receipts to compare with your
billing statements.
- Open billing statements promptly and reconcile
your card accounts each month, just as you would
your checking account.
- Report promptly and in writing any questionable
charges to the card issuer.
- Never lend your card(s) to anyone.
- Never give your number over the phone unless you
are initiating a transaction with a company you
know is reputable.
The cost of credit and charge card fraud
-- to card holders and to card companies alike -- was $864
million in 1992. Everyone pays for credit and charge card fraud
in higher prices, whether or not they are personally defrauded.
While theft is the most obvious form of credit and charge card
fraud, fraud occurs in other ways, as well. For example, someone
may use your card number (not the card itself) without your
permission. This may occur in a variety of ways:
* A thief rifles through trash to find discarded receipts or
carbons to use the card numbers illegally.
* A dishonest clerk makes an extra imprint from your credit card
or charge card for his or her personal use.
* You receive a postcard or a letter asking you to call an
out-of-state number to take advantage of a free trip or a
bargain-priced travel package. When you call, you are told you
must join the travel club first. You are asked for your credit
card number so you can be billed for the membership fee. The
catch? New charges continue to be added at every step and you
never get your free or bargain-priced vacation.
How to Guard Against Credit and Charge Card Fraud
Here are some suggested precautions you can take to help
protect yourself against credit and charge card fraud. You also
may want to instruct any other person who is authorized to use
your account to take the same precautions.
* Sign your new cards as soon as they arrive.
* Carry your cards separately from your wallet. Keep a record of
your card numbers, their expiration dates, and the phone number
and address of each company in a secure place.
* Keep your card in view, whenever you can, after you give it to
a clerk. Retrieve your card promptly after using it.
* Avoid signing a blank receipt, whenever possible. Draw a line
through blank spaces above the total when you sign card receipts.
* Void or destroy all carbons and incorrect receipts.
* Save your card receipts to compare with your billing
statements.
* Open billing statements promptly and reconcile your card
accounts each month, just as you would your checking account.
* Report promptly and in writing any questionable charges to the
card issuer.
* Notify card companies in advance of a change in address.
In addition, here are some things you should not do:
* Never lend your card(s) to anyone.
* Never leave your cards or receipts lying around.
* Never put your card number on a postcard or on the outside of
an envelope.
* Never give your number over the phone unless you are initiating
a transaction with a company you know is reputable. If you have
questions about a company, check with your local consumer
protection office or Better Business Bureau before ordering.
What To Do If Your Cards Are Lost or Stolen
If your credit or charge cards are lost or stolen, call the
issuer(s) immediately. Most card companies have a toll-free
number for reporting missing cards. Some companies provide
24-hour service. By law, once you report the loss or theft, you
have no further liability for unauthorized charges. In any event,
your maximum liability under federal law is $50 per card.
What To Do About Suspected Fraud
If you suspect that someone has illegally used your credit
card, call the card issuer immediately. Use the special telephone
number that many card issuers list on their billing statements.
You also may want to follow up your phone call with a letter.
You may be asked to sign a statement under oath that you did not
make the purchase(s) in question, but you cannot be
required to do so.
