Facts that you should know about credit card fraud

Most credit card crime involves lost or stolen cards. Thieves can get your credit cards by stealing your wallet or burglarizing your home. Crooks also pay store employees for customers' card numbers and create bogus cards to resell on the black market.
Credit card thieves don't have to have the credit card itself to rob your account. If they find a sales slip with your account number and expiration date, they can take advantage of your account.
Crooked telemarketers may call you with tantalizing offers of discounted merchandise or tell you that you've won a prize. They'll ask for a credit card number for "shipping charges" or for some other phony reason. They may send you shoddy or worthless items or charge your credit card account without sending you anything.
Unscrupulous scam artists raid mailboxes to gather renewal credit cards and bills to obtain credit card numbers. As a protection, most card issuers now require that you call from your home phone to activate the card before you use it.
Credit card fraud has popped up on the Internet, although fortunately it has not become widespread because most retail web sites use a "secure" mode for transactions. This means that they scramble the credit card numbers to disguise them before they are sent through the Internet.

How to guard your card

Carry only one or two cards so if you lose them or are robbed, you have fewer to report missing.
Keep a record of your credit card numbers in a secure place. Include in that record the expiration date, phone number and address of the card issuer.
Never leave your purse or wallet unattended in public. Keep an eye out for pickpockets.
Always check that you get your card back after you make a purchase.
At home, keep your cards in a safe place that won't be obvious to burglars.
Always sign your card in ink as soon as you receive it.
Never lend your card to anyone. If you want to let someone else use your card to buy something, handle the transaction yourself.
Be aware of when your cards and bills are due to arrive. If they are late, contact your credit card company.
Make sure your mailbox is secure, and that only you and the postal carrier have access to it.
Tear up all credit card receipts and preapproved credit card offers into tiny pieces before you throw them away. Keep your billing statements in a safe place.
Before you send your card back to the issuer to close your account, cut the card in several pieces.
When you use your credit card online, make sure you are using a secure web site. Look for a small key or lock symbol at the bottom left of your browser's window.
Never give your card number to strangers or telemarketers who call you on the phone.

Lost or Stolen cards

If you lose your credit or charge cards or if you realize they've been lost or stolen, immediately call the issuer(s). Many companies have toll-free numbers and 24-hour service to deal with such emergencies. By law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.

Keep the phone number of your card issuer at the office or in an address book you carry with you, as well as at home, so you can call without delay. If you don't have the phone number, call toll free directory assistance to find it.
If your account number but not the card itself was used illegally, you're not liable for any amount.
Don't use your credit card after you have reported it lost or stolen.
After you've called to report the problem, be sure to follow up with a letter to the issuer, explaining that an "unauthorized charge" was made. This paper record of your notification can also limit your liability.
Call your credit card issuer immediately if you see anything suspicious on your bill. You could help the company uncover fraud?and save yourself from paying unauthorized charges.