Credit Card Fraud Protection for Households

How to Increase Identity Security When Using Cards

Sep 16, 2009 Wei Yin Wong

To prevent identity theft, credit card users must watch over their cards, keep the PIN secret, buy from trusted online merchants and avoid sending card details by email.

According to the Australian Payments Clearing Association (APCA), the incidence of credit card fraud rose from 18.6% per 100,000 transactions in 2007 to 21.8% in 2008. This translated to 44.7 cents for every $1000 transacted (2007) to 53.2% the following year.

The APCA also states that the increase in credit card fraud is caused by card-not-present fraud cases and counterfeit or skimming. The former refers to situations where the user is not physically present when transactions take place such as over the Internet, phone or mail orders. The latter occurs when credit card information is illegally copied from the magnetic strip and used to produce counterfeit duplicate cards, also known as cloned cards.

For families using credit cards regularly, this is a worrisome trend. Fortunately, there are ways to increase identity security when using cards. Here are some credit card fraud protection tips for households.

Watch Over Credit Cards

Whenever a credit card is used, make sure it is in full view. Never let a waiter or merchant take the card to an obscure corner where the card holder cannot see what’s being done to the card. Fraudsters often use a second machine to swipe the card once more to capture confidential details. This card skimming activity will then result in the production of cloned cards. If the supermarket cashier accidentally swipes the card twice, ask for a cancellation receipt for the first swipe.

At the restaurant, pay by going to the cashier in person and watch the cashier’s every move with the credit card. True, it seems weird doing that at a fancy restaurant but the safety precaution is worth the effort. The message is clear – always keep the card within sight whenever a transaction is made to enhance credit card fraud protection.

Never Reveal Card PIN to Anyone

To increase identity security, opt for chip and PIN credit cards. These are safer than signature-based cards as information held in the magnetic strip at the back of the card is further protected by a microchip. When entering the PIN, shield it from view to prevent fraudsters from filming it. If the PIN somehow becomes known to someone else, notify the credit card provider immediately to bar it from being used further.

In addition to PIN, even open details like the card number, name on card, validity date and the verification code (the 3-digit number at the back of the card) must never be shared with others. Unscrupulous individuals can easily memorize all these and use them to make purchases over the Internet, phone and mail.

Buy From Trusted Online Merchants

Busy mums who prefer Internet shopping should only buy from trusted and established online merchants whose sites are fully secured. Websites displaying a padlock icon at the bottom of the web browser are often safe.

Be very careful about paying by credit card over the phone or mail order as well. Again deal only with trusted and established businesses with very physical addresses.

Avoid Sending Card Details by Email

To prevent identity theft, don’t send card details by email as such information can be easily accessed by hackers and fraudsters. If it is absolutely necessary to do so, send the number in batches. Credit cards usually have 16 digits. Send half the digits in one email and the rest in another.

Pick up New Credit Card in Person

Those who are applying for new cards or getting replacement cards should arrange to collect the cards in person from the branch or credit card company office. Decline having the card sent by mail as fraudsters have been known to steal envelopes containing credit cards from letterboxes.

Families relying heavily on credit card for regular purchases must learn some card fraud protection tips to increase identity security. They should watch over their cards whenever transactions take place, never reveal the card PIN to anyone, buy only from trusted online merchants, avoid sending card details by email and pick up new credit cards in person from the branch instead of getting them by post.

Found this article useful? Read also Avoiding Credit Card Fraud, How to Choose Credit Cards and How to Reduce Household Credit Card Debts.

References:

Tait, Allison. Credit Card Stressbusters. Queensland: Wrightbooks, 2009.

Blue, Tim. The Seven Ages of Money. Australia: Choice Books, 2003.

The Australian Payments Clearing Association – Payments Fraud in Australia

The copyright of the article Credit Card Fraud Protection for Households in Family Finances is owned by Wei Yin Wong. Permission to republish Credit Card Fraud Protection for Households in print or online must be granted by the author in writing.

Credit Card Fraud Protection for Households

Buy From Trusted Online Merchants