Credit Card Fraud - "Your card does not have to be stolen in order for you to fall victim to credit card fraud!" - Ray's Computer Tips

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Credit card fraud costs hundreds of millions of dollars each year. Your card does not have to be stolen in order for you to fall victim to credit card fraud.

Many people fear credit card fraud on the internet, but I have experienced credit card fraud more offline than online!

Here are some examples of offline scams:

* A thief goes through your trash to find discarded receipts or carbons and then uses your account numbers illegally.

* A dishonest clerk makes an extra imprint from your card and uses it to make personal charges.

* You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip.

 You must be careful with your credit card both online and offline.

There are many online scams that exist for the sole purpose of getting your credit card number, expiration date, and security code. They usually start with an email to you asking you to click on a link.

DO NOT CLICK ON LINKS IN EMAILS. Instead if you think it is a valid email from your bank, for example, call them or find out what their Web site is and go to it (do not use the Web address in the email.) But here is one rule you can, pardon the pun, take to the bank:

If the email is a bank or financial service wanting your credit card number, IT IS A SCAM.

Banks already know your credit card number. They never ask for it online. If you fall prey to this scam, your credit card will soon have hundreds of charges on it and you will have to sort it all out. Even though, you probably will not have to pay the fraudulent charges (the merchant usually gets stuck with that), it will be a hassle and may ruin your credit.

Even though credit card companies have added security measures to help protect you, thieves can find ways around them. Once a thief has your credit card number, he can go online to any credit card processing site and try expiration dates until he gets the right one.

Thieves from Malaysia use this method (we block all orders from Malaysia on our Web site for this very reason). Once he has the expiration date, he can use your card at any web site that does not require the use of the security code.

It does not seem that credit card companies even try to find or prosecute thieves from other countries like Malaysia. They just require merchants, like us, that received the money and sent the product, to return the money. We lose money every month from this. The credit card companies are not out anything.

A thief does not even have to get your credit card number from you. When I lived in Russia I came across a program that would randomly create credit card numbers. Instructions were given on how to use the credit card number to get a free subscription to AOL. Within a month AOL completely pulled its services from Russia.

So should you stop purchasing online? No. If you are careful, you should not have any problems online.

Here are some important tips to remember:

• Only give out your credit card number to purchase things that you have sought out yourself.

• Only deal with reputable companies. A reputable company will not rip you off (if they do, you have some type of recourse.)

• Watch out for email scams.

• Check your monthly credit card statement for fraudulent charges. Report any to your credit card company to start the chargeback process.

• Visit any of the three credit bureaus, Equifax, Experian, or TransUnion at http://www.annualcreditreport.com, once a year to check your credit report for free. Report any inaccuracies to the appropriate credit bureau.

• If your credit card is stolen or thieves get a old of your credit card number, report it immediately to your credit card company.

If you are cautious with your credit card number and follow these tips, shopping online will be safe.