How to Protect Your Credit Cards From Fraud

Credit cards are integral to daily financial transactions, offering convenience but also necessitating proactive security. Protecting these tools is fundamental to safeguarding financial well-being, as individuals play a direct role in preventing unauthorized access.

Protecting Your Physical Card

Safeguarding a physical credit card involves keeping it in a secure wallet or a designated safe location at home to prevent loss or theft. Never lend a credit card to another person, as this can lead to misuse and potential liability for unauthorized charges.

Memorize your card’s Personal Identification Number (PIN); never write it down or share it. When using a PIN at an ATM or point-of-sale terminal, watch for card skimmers, which illegally capture data. Shield the PIN pad while entering your number to prevent unauthorized viewing. Always retrieve your card promptly after completing any transaction.

Securing Online and Digital Transactions

Online and digital environments require specific credit card security precautions. Always confirm online purchases are made on secure websites, identifiable by “HTTPS” and a padlock icon, indicating an encrypted connection. Create strong, unique passwords for all online accounts storing card information.

Enable multi-factor authentication (MFA) wherever available, requiring a second verification form like a mobile code or biometric scan. Avoid sensitive financial transactions on public or unsecured Wi-Fi networks, as these connections are vulnerable to interception. Recognize and avoid phishing, smishing, or vishing attempts, which try to trick individuals into divulging card details through deceptive emails, texts, or calls.

Some card issuers offer virtual card numbers, temporary, single-use numbers linked to the primary account, providing additional online protection. These numbers appear as a regular credit card to merchants but mask actual card details. Utilizing trusted payment services, like digital wallets, also helps by tokenizing card information, so the actual number is not directly shared.

Monitoring Your Accounts and Information

Ongoing vigilance helps detect and prevent credit card fraud. Regularly review credit card statements for unauthorized or suspicious charges, even small ones, as fraudsters test card validity. Many card issuers offer transaction alerts, providing real-time notifications via email or text for activities like purchases exceeding a certain amount or transactions made without the physical card.

Periodically check credit reports from the three major credit bureaus—Equifax, Experian, and TransUnion—to identify signs of identity theft or unusual account activity. Federal law allows consumers to obtain a free credit report from each bureau once every 12 months by visiting AnnualCreditReport.com. Securely dispose of sensitive financial documents, such as old credit card statements, receipts, and pre-approved credit offers. Shredding these documents prevents criminals from retrieving personal financial information. Exercise caution when sharing personal information, especially in response to unsolicited requests by phone, email, or text message.

Responding to Potential Fraud

Act immediately if credit card fraud is suspected or confirmed, or if a card is lost or stolen. Contact the credit card issuer directly. Most card companies provide a 24/7 customer service number, often found on the card, billing statements, or their website. Reporting the card as lost, stolen, or compromised allows the issuer to deactivate it and prevent further unauthorized use.

Request a freeze or cancellation of the compromised card, a procedure initiated by the issuer upon notification. The card issuer will then guide the cardholder through disputing any unauthorized charges. Under federal law, a cardholder’s liability for unauthorized credit card use is generally limited to $50. Many card companies offer zero-liability policies, meaning the cardholder may not be held responsible for any unauthorized charges if reported promptly.