The Risk of Identity Theft With Credit Cards

Using credit cards may be convenient, but it also puts you at risk of identity theft. If thieves obtain your credit card information, they can use it to find other personal information as well as use the card without authorization. Monitor credit card statements regularly to catch fraudulent charges and report any concerns to your credit card company immediately. If you report theft soon after it happens, you are typically not liable for more than $50 worth of unauthorized charges, and your bank can take action to stop the thieves from using the card.

Online Shopping

If you shop online, thieves can intercept the transmission and steal your credit card information. They can then use your credit card to make purchases and use the name on your card to find other personal information about you such as your Social Security number. Only purchase items from online retailers you trust and check your card statement regularly, especially after making purchases, to ensure that nobody else is using your card.

Physical Stores

Privacy Rights Clearinghouse reports that dishonest employees occasionally steal credit card numbers from customers. Some employees download credit card information to their own computers when they swipe cards. Pay special attention to employees' behavior when they swipe your card and report anything suspicious or unusual to the employee's supervisor. If an employee offers to swipe a card on a handheld device, verify that this is store policy before giving permission, as some thieves use such devices to aid in stealing card numbers.

Over the Phone

Some identity thieves pretend to be government employees or sweepstakes officials on the telephone to trick victims out of their credit card numbers and other personal information. Never give your information out over the telephone without verifying the caller's identity. Ask for a call back number if a person claims to be from a company you do business with and check the number he gives you against the contact number you have or the company's listing, or hang up and call the company back. If you do not recall entering a sweepstakes, claims that you won one are most likely scams; do not give such callers any personal information. Follow these same rules if you get an email requesting information to avoid falling for online scams

Dumpster Diving

Thieves sometimes search through victims' trash to find credit card numbers or Social Security numbers. Always shred bank statements and receipts before throwing them away. Toss out receipts only in your own trash can, not in public trash cans such as those at restaurants, to minimize the risk of thieves finding them, and always put receipts in your wallet until you dispose of them so that they won't fall out of shopping bags and into thieves' hands.