Using Credit with Security in Mind

Noreen Ruth

Odds are that hardly a day goes by that you don't use a debit card, write a check or make a purchase with a credit card. Chances are you have never even considered the potential for identity theft that can occur if you're not careful with these transactions. Identity theft happens when someone uses your personal information without your permission to commit fraud or other crimes.

Here are some of the ways you can use your credit cards to reduce your chances of becoming a victim:

Don't Just Sign the Back of the Card
It has become commonplace for merchants to neglect actually comparing your signature. One way to protect you is to write on the signature line "ask for identification". The merchant would then ask for your driver's license to confirm your identity.

Review Your Monthly Statement
Don't assume that your monthly statement is accurate. Many cases of identity theft have gone undetected because a review of the statement was neglected. Compare your receipts with your monthly statements carefully every month. Notify the issuer immediately, if you notice discrepancies.

Precautions to Take When Ordering over the Phone
The most important point regarding phone orders is that you are the one making the first contact. When you are solicited by a telemarketer, a red flag should be raised as you really don't know who you're talking to. If you're interested in a telemarketer's offer, request ordering information to be mailed to you so that you can review its authenticity.

Keep Your PIN Number Secure
The first numbers a thief will try to access your account are your personal identification statistics such as your birthday, address, phone number or social security number. NEVER use these as your personal identification number (PIN). NEVER carry you PIN in writing; file it only in your memory!

Protect Your Account Numbers
A thief with access to one of your account numbers can do a lot of damage especially over the phone. For this reason it is imperative that you destroy all evidence of your number when you discard documents. A paper shredder is perfect for this purpose. Never put your account number on your check, on the envelope or postcard. On carbon card slips, be sure to draw a line through all blank spaces so the amount cannot be changed.

Urgent Response to Lost/Stolen Cards
The sooner you respond when you've realized a card is lost or stolen the less damage will occur. Report the loss to the issuing company, as soon as possible. If the card has not been used, you will not be held for any unauthorized charges. If the card has been used, your liability is the first $50. If the number is stolen but not the card itself, you are not responsible for charges.

Protect Yourself while Shopping Online
More and more people are finding the convenience and ease of shopping online. The basic rules of traditional shopping apply to internet shopping along with some additional risks. To have a safe and enjoyable shopping experience online consider the following:

* Your social security number of banking information should never be required to make a purchase.
* Make sure that the site is secure which is indicated at the bottom of your browser window by an unbroken key or padlock. This indicates that your credit card data is transmitted securely.
* Print or electronically save all records of your internet purchases.
* Change your passwords often and keep them private and secure offline.
* Understand all the merchant policies including delivery charges, returns and warranties.
* Honest and safe internet merchants will readily have contact information available including a physical address and phone number.