Lately, many credit card fraud reports have been featured in the media. In fact, it’s becoming so common that even up to one in seven Australians are falling victim to credit card fraud. This is why it’s so important to be alert and aware of the dangers of credit card fraud so that you can avoid it happening to you.

How to protect yourself from credit card fraud:

Don’t Write Down Pin

The most important thing is deceptively simple – it’s common sense but most people get caught out: never write your credit card number down, and never give your PIN (if you use one) to anyone else, nor write it down anywhere! Even if you think it’s in a safe place, it wouldn’t take much for it to get lost or get into the wrong hands. If your house got robbed, a little book labelled “Passwords and PINs” lying on the desk would be a prime invitation for stealing. You need to memorise your PIN – it’s not that hard, and it will go a long way to protecting you from credit card fraud.

Using Identity Monitoring Service

Identity fraud can impact you in any number of ways, but in the credit card department might see someone use your details to apply for a credit file. Identity monitoring services such as Secure Sentinel will keep a watchful eye on your credit file and alert you in the event that an application is made using your details. They’ll also monitor the usual websites where illegal identities are traded, search for your name and alert you if necessary.

Keep Credit Card Safe When Out and About

Also, never display your credit card on your person. This may sound silly, but pickpockets are very good at moving in at the right moment and stealing physical money and these days, cards. In this modern age we often forget that while protecting ourselves from online fraud, we’re still carrying our credit cards around in our back pocket. Don’t do this! Men, use your shirt pocket; ladies, keep your clutch or purse at the front of your body; and if you’re travelling, use a money belt to keep your important cards and documents close to your body. Pickpockets are much less likely to attempt to steal from these.

Don’t Be a Victim of Phishing

Phishing is another way you can lose card control, funds or even your identity to fraud. Phishing emails arrive in your inbox looking authentic and convincing you to go to an official looking website which asks for your credit card number, usually for some urgent “need” such as “preventing your account from becoming locked”. Of course they’re all lies, and soon enough, you’ve given away your credit card number and maybe even a long list of personal details – which is now in the wrong hands. The way to avoid phishing scams is to resist entering details into any website that claims to be your bank or financial institution. The website may look convincing, but if EVER in doubt, call the bank first using the bank’s phone number as stated in a real phone book, and get them to go through it with you. It’s better to be safe than sorry, and banks will never laugh at you for being wary of phishing – they want to catch the scammers too.

Use 3^rd Party Payment Systems Like Paypal

Paypal is an alternative way to avoid credit card fraud. This acts as a proxy between your real credit card and the merchant, so that the merchant never has access to your real credit card – the number will simply cease to exist after one use. It also protects your credit card from potential interceptors between you and the bona-fide merchant, and Paypal will also guarantee you for up to $20,000 in the event an item doesn’t arrive or arrives not as described.

Go Through Credit Card Statements

Make time to sit down with every credit card statement and read over it carefully. You’re keeping track of receipts and other purchases you make with your credit card, right? Well, it’s only a small step further to go to make sure that no fraudulent charges have been made to your account during the month, with you unawares.

Shred Old Statements

After you’ve finished checking bank statements and credit card statements, don’t simply toss them in the garbage. Did you know that professional identity thieves will deliberately go through rubbish because they know unsuspecting people will do just that – throw out their important papers whole? A simple one will set you back only $40 or so and will make sure that any papers with your personal details on them are shredded beyond recognition!