What Security Problems Come With Using Credit Cards?

Credit cards offer convenience when shopping online or in person. They can help you with personal security by allowing you to purchase goods and services without having to carry cash. But credit card fraud can occur for months without the credit card owner even realizing it, according to the Federal Trade Commission (FTC). You should understand the security problems posed by credit card use.

Credit Card Fraud

One of the most basic security problems with using a credit card is the possibility of credit card fraud, according to the FTC. If your account number or copy of a transaction receipt wound up in the wrong hands, you could find unauthorized charges on your card. Check your credit card statements every month to make sure you recognize all of the transactions. Report any suspicious transactions to your credit card company.

Credit Accounts

Credit card fraud also can occur when someone opens an account in your name. One of the most common ways for this to happen is when you get a pre-approved credit card offer in the mail that someone else manages to steal from your mailbox or your trash. The criminal fills out your application, opens an account and begins using the card in your name.

Identity Theft

If a criminal is able to gain access to your credit card accounts through the Internet, or he gets your credit card account statements you threw out in the trash, then your Social Security number and other important information may be compromised. With that information, a criminal could begin the process of stealing your identity and opening a variety of accounts in your name. Destroy all of your credit card statements and expired credit cards before disposing of them. The best way to do this is to invest in a paper shredder that is also designed to handle credit cards.