In a troubled economy, it’s more important than ever to keep an eye on your identity. Instances of ID fraud, according to the Javelin Strategy & Research Center, rose 22% from 2007 to 2008. According to their study, stolen personal information (obtained from a stolen wallet or purse) accounted for 43% of all ID theft; only 11% of ID theft came from online methods.

At 26% of all cases, credit card fraud still accounts for the highest percentage of identity theft. So how can you protect yourself from illegal credit card purchases in your name?

• If your credit card offers some sort of additional protection for online purchases, take them up on it! (GHCU credit cards can be listed on “Verified by Visa,” an additional line of protection that ensures no one can use your credit card online but you.)
• Sign your credit card! Many people believe putting “Ask for ID” will eliminate any chance of someone using their card for in-person purchases, but what it actually does is negate your contract with your credit card issuers. Fail to sign the back of your card, and you have no protection if someone else makes fraudulent purchases in your name—that makes you liable for the entire amount. Go get your wallet and a pen and sign all your credit and debit cards right now. Really.
• Insist that cashiers and others who take your card for payment ask for ID. While that may not help you directly, the more we insist, the more this will become common practice. And please don’t object when a cashier asks you for your ID—this is to protect you and all of us who buy with plastic.
• Protect your wallet! Never leave cards unattended, even in a place you believe to be safe. The workplace is one of the main places where credit cards disappear. Your car is also a poor choice. Like a dog on a hot day, take your card with you or leave it at home.
• If your card disappears, report it immediately. Most fraud takes place within the first seven days after the card goes missing.
• Check your monthly statement. Arduous as this is, it’s a great way to catch fraudulent purchases early. Plus it helps you track your spending, which can be a useful wake-up call for many of us! I treat my credit card like a debit, listing all my purchases in my checkbook register. I use black ink for checks, debit purchases or cash and list all credit card purchases in red. This makes it easy to compare my record against my monthly statement.
• Never give your credit card number on an insecure website. Check for the “https” in the URL and the little lock at the bottom or top of your screen—these indicate a secure site. Also be sure the website has a privacy policy and won’t distribute any of your information without your knowledge and consent.
• Draw a line through blank lines on a receipt (like the “tip” line, if you choose to give a cash tip). Blank lines can be filled in by other folks, so don’t give them the opportunity.
• If you have lots of credit cards, only carry those you need.
• If bills go missing or your new credit card doesn’t arrive promptly, call the issuer. Someone may have redirected your mail to a different address.
• Have a secure mailbox for ingoing and outgoing mail. Better yet, choose online banking and bill pay. Remember that mailbox theft is one of the major targets for identity thieves! GHCU’s online banking and bill pay are secure and free for members.

If you have any concerns about your credit card or about identity theft in general, sound the alarm. Call your financial institution right away to minimize the time ID thieves have to wreak havoc on your identity and reputation. (GHCU contact information is here).

The US Department of Justice gives a very thorough to-do list if you believe you’ve been a victim.

Remember: prevention is better, easier and cheaper than cure! Take steps to protect yourself from identity theft.

Filed under: Financial News and You by Shannon