Avoiding credit card scams

No matter how much care you take with your credit cards or your other financial data there is always the enterprising thief waiting to rip you off. For the most part were are protected by the credit card companies if someone steals the card and uses it then you are off the hook as long as you promptly advise the company of the theft.

However these companies must make a profit as well and the losses from fraud eventually find a way to be passed back to the cardholder via higher interest rates or service charges.

It is important to be aware of the ways scammers have become more creative about stealing your private card information. Because knowing about the scams are the best way to be protected against them. When the card is stolen usually the thief racks up purchases before it is even discovered your card is missing. If this happens to you notify the credit card company and police immediately.

Skimming or cloning has become one of the more high tech ways of credit card theft. Skimmed cards are printed or encoded without the credit card company giving consent or have been altered or recoded in a certain way.

Your credit card info can be stolen from anywhere you swipe the card – gas stations, restaurants, ATMs and can be copied onto an additional card without anyone’s knowledge. The majority of people are not even aware their card has been skimmed until the statement comes and they see all the charges that were unauthorized.

Checking your account monthly is very important. Card trapping is another form of fraud. It is a device that holds your card inside a machine when it needs to be inserted to activate it. The records and all your account information are gleaned off the card. When you decide the card is not coming out and you leave, the thief takes the device and card and leaves.