Published: Sunday, January 16, 2011, 6:42 AM
By
John Gin
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With identity theft becoming more prevalent, what are some things I should do to ensure that my credit card information is secure?
It’s no secret that people can get into trouble with their credit cards by racking up too much debt. But that’s not the only hazard of paying with plastic: There’s also the challenge to keep your credit card information out of the hands of thieves.
This isn’t just a matter of making sure your card is always tucked securely back into your wallet or purse. There are times when your credit card, or information about your card, is out of your hands and care needs to be taken to assure that unauthorized individuals aren’t using it. Here are a few pointers to protect yourself:
* Be safe online. Making online purchases can be one of the safest ways to use credit cards if you do it right. When you buy online, you don’t have to hand your credit card to anybody or read your card number to a stranger over the phone. Make sure when it comes to actually paying for a purchase that the website is secure (noted by the address prefix “https:”). These sites often have an icon of a padlock or unbroken key on the web page to indicate that the company is using reliable security technology. The best safeguard might be to stick with trusted merchants when making purchases online. Also, keep your computer’s operating system and anti-virus, anti-spyware and firewall software up-to-date.
* Be cautious about phone purchases. It is particularly important to know the firm or organization you are dealing with if you provide credit card information over the phone. This is generally one of the least secure ways to make credit card purchases, so typically you should look for other options.
* Avoid sending information in the mail. Many mail-order forms give you the option to include credit card information. If that mail gets lost, an unauthorized person could have your credit card data. It’s best to avoid sending credit card information this way, but if you must, make sure numbers can’t be read through the envelope and try to disguise the fact that payment information is enclosed.
* Try to keep an eye on your card when you hand it over. If you make payments at retail outlets or restaurants with a credit card, do your best to keep the card in view. It’s the best way to verify that the waiter or clerk is simply running the card through the system and returning it to you, and that nothing questionable is happening with your information.
* Choose credit cards over debit cards. Should fraud occur, you are better protected by using a credit card. Under federal law, your liability for an unauthorized charge is limited to $50.
If you believe fraudulent charges have been made, report it immediately to your credit card company and ask them to replace your card with a new one.
* Keep good records. Keep receipts and track your purchases so you can compare your credit card usage to your monthly statement (or, with most card companies, you can check your statement online, updated daily). That is the best way to determine if unauthorized purchases have occurred.
John Gin is a certified financial planner in the local office of a national financial services firm. Send questions to Money Watch, The Times-Picayune, 3800 Howard Ave., New Orleans, LA 70125.
Article source: http://www.nola.com/business/index.ssf/2011/01/simple_steps_can_protect_credi.html
Category: Identity Theft Watch