How To Prevent Identity Theft And Credit Card Fraud

By: Ray Ebersole Click author's name for more of his/her articles

Do you realize what the leading risk today is regarding your credit card and it’s usage and security? Most people presume right away that the most risky thing you can do with your credit card is to purchase something online. A lot of other people will answer that ordering something over the telephone would be number one. Neither one of those is accurate.

The thing you should dread the most is actually handing your card to a merchant and having them walk away with it so it is out of your site. Awful I realize but true. This may not be the leading money fraud in relation to credit cards but from a consumer point of view, your likelihood of being scammed face to face and in person are much higher than over the telephone or online.

Let me clarify. True, it is very common to turn on the newscast and find out that some vendor or business had a security breach and “10 million credit or debit card numbers were compromised”. It happens rather frequently. But the chances of that in fact affecting you personally are pretty remote. The majority of the time when this happens the crooks are missing one or two necessary facts that would allow them to actually benefit from the card. The may not possess the billing address or the security code which might make the entire bunch of cards and numbers useless.

It is the down home face to face situations that you ought to be very wary of. I do not imply to demonize one specific job or line of work but when you physically give your card to someone you have given away the golden goose. That is because together with today’s technology a new little scam called “skimming” is becoming extremely common.

What the heck is skimming?

Skimming is when a seller or merchant takes your card and leaves your immediate vicinity. Imagine waiter or waitress or a retail clerk who may go off to check you out as you still shop. When they disappear from site they would produce a tiny pager sized gadget that they can skim your card through. This device easily and inconspicuously would fit in their pocket and be very hard to discover. But along with today’s expertise that scanner would decipher the magnetic strip as well as save all of the necessary information on a computer chip. They know how to then transmit that information from the scanner back to a plain card and guess what? They precisely cloned YOUR credit card.

Another prevalent system is used along with ATMs. Be cautious of ATMs in more isolated places like non-bank areas inside malls or hidden away in corners at convenience stores. These locations might without difficulty be geared up up for skimming while no one is in the immediate area. Thieves may insert a translucent plastic piece in the ATM insert which would prevent the machine from reading your card. A small camera concealed on the ATM records your PIN number as you attempt again and again to gain access to your bank account. You leave frustrated believing that the ATM has eaten your card. The thief turns up then takes your card along with the camera. He promptly has absolute access to your account.

The moral of the story here is to apply common sense and be alert. Although nothing is fail-safe, by taking a a small amount of fundamental security precautions you can reduce your chance of becoming a victim. Attempt to use only genuine bank ATMs on bank property or in major grocery stores etc. And if a waiter insists on taking your card from you then leaving your immediate are, put a telephone call in to your credit card company in a day or so to make certain your charges are what they ought to be. A two minute phone call is a good deal better than hours and hours of potential heartache.