Debt Free

The other day my wife got a call from one of her credit card companies, inquiring why she was getting $300 worth of products from the Disney store and a new cell phone. Apparently their fraud algorithm indicated those purchases, in that time frame, was outside her normal spending patterns. Their algorithm works very well. Someone was using her credit card without her permission. The problem was that her card was securely in the confines of her purse, right where she left it.

Thankfully, in this instance, the attempted credit card fraud was discovered before it went from attempted to actual. Since the fraud attempt occurred in the mall, you'd think it would be easy enough to use security cameras to try and catch the perpetrators. They know exactly what time the attempt was made, and where. Just look at the video, and there you go.

Security experts point out that even though the digital video servers used for the CCTV systems in most major malls would easily allow the perp to be captured, sadly it would be only on video. It seems law enforcement is just too damned busy in most metro areas to worry about most of your garden variety credit card and identity theft. That means you have to protect your own credit card. Your card doesn't have to get stolen, even though a friend of mine had his stolen at the gym a few years ago. The thieves get some nice outdoor stuff from REI before he found out.

How do you protect yourself from credit card theft? After all getting debt free is hard enough with your own debts, you don't want them added to by someone else. Luckily you're usually only liable for $50 of fraudulent activity in most cases. Thank the Feds for that one. Even with the $50 liability limit, credit card fraud is a problem you want to avoid. Here are some tips to help you avoid credit card fraud:

1 - Don't let your card out of your sight. It's common now for thieves to use small scanners to capture the information from the magnetic strip on your card. Presto! They now have all your account information and PIN, which they are free to use, or more likely, sell to organized crime. This is especially dangerous at restaurants when you give your card to your server to pay for your meal. They take it away to do who knows what with it. Don't let them.

2 – Make sure you destroy all copies of anything with your credit card number and name on it, such as receipts.

3 – Write “Please Check ID” on the back of your card next to the signature. With any luck the store clerk will actually do just that. It's amazing when they apologize for checking your ID when you make a credit card purchase. Aren't they supposed to do that? If every retail employee did check your ID, instances of credit card fraud would take a hit.

4 – Get your credit cards replaced with picture cards. It's allot harder to get away with using someone else's credit card if their picture is on the front , and they look nothing like you. If they want to go so far as to get cosmetic surgery to resemble you, let them have the money. They earned it.

5 – Keep your credit cards in a mini wallet separate from your main wallet. That way if you lose your wallet a thief is less likely to get both your credit cards and your ID. You may lose one or the other, but not both. As an added bonus, it'll be easier to leave your credit cards at home when you head out shopping. That'll help you on the road to getting debt free.

6- Unless you called a business, don't ever give your credit card information out over the phone. Who's really on the other end of the line anyway? Probably some boiler room credit card theft operation in Uzbekistan, that's who. That applies even if they seem legit and have most of your information already. The scam there is that they're most likely after the 3 digit security code on the back of your card.

Hopefully you'll never be the victim of credit card fraud, but in this day and age the numbers aren't on your side, unless you have no credit cards.