Credit Card Advice Corner


Protecting Against Credit Card Fraud


Tips to protect from credit and charge card fraud:
  • Sign your credit cards as soon as you receive them.
  • Keep a record of your credit card account numbers, their expiration dates, and the phone number and address of each company in a secure place, other than in your wallet.
  • Keep a watchful eye on your credit card during the transaction, and get it back as quickly as possible.
  • Void any incorrect receipt, and destroy carbon copies.
  • Save your credit card receipts to compare with billing statements.
  • Open your monthly statement promptly and reconcile credit card accounts monthly.
  • Promptly report any questionable credit card charges, follow-up in writing to the credit card issuer.
  • Use Calculatorplus.com's credit card calculator to calculate credit card minimums.
  • Notify credit card companies in advance of any planned change in address.
  • Do NOT lend your credit card(s) to anyone.
  • Do NOT leave credit cards or receipts lying around.
  • Do NOT sign a blank credit card receipt. When you sign a receipt, draw a line through any blank spaces above the total.
  • Do NOT give out yourcredit card account number over the phone unless you're making the call to a company you know is reputable.

Reporting Losses and Fraud
If you lose your credit card or charge cards or if you realize they've been lost or stolen, immediately call the issuer(s). By law, once you report the loss or theft, you have no further responsibility for unauthorized credit card charges. In any event, your maximum liability under federal law is $50 per credit card.

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Advice Corner

Identity Theft Victims

  • Stop the collection of fraudulent debts. You may ask debt collectors to stop contacting you to collect on fraudulent debts. You also may ask them to give you information related to the debt, like the names of the creditors and the amounts of the debts.
  • In many states, you have the right to be notified by a business or organization that has lost or misplaced certain types of personal information.

Limiting Your Loss From Identity Theft

- Several laws limit your liability for fraudulent debts caused by identity theft.

Fraudulent Credit Card Charges:

You cannot be held liable for more than $50 for fraudulent purchases made with your credit card, as long as you let the credit card company know within 60 days of when the credit card statement with the fraudulent charges was sent to you. Some credit card issuers say cardholders who are victims of fraudulent transactions on their accounts have no liability for them at all.

Lost or Stolen ATM/Debit Card

: If your ATM or debit card is lost or stolen, you may not be held liable for more than $50 for the misuse of your card, as long as you notify the bank or credit union within two business days after you realize the card is missing. If you do not report the loss of your card promptly, your liability may increase.
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Fraudulent Electronic Withdrawals

: If fraudulent electronic withdrawals are made from your bank or credit union account, and your ATM or debit card has not been lost or stolen, you are not liable, as long as you notify the bank or credit union in writing of the error within 60 days of the date the bank or credit union account statement with the fraudulent withdrawals was sent to you.

Fraudulent Checks

: Under most state laws, you are liable for just a limited amount for fraudulent checks issued on your bank or credit union account, as long as you notify the bank or credit union promptly. Contact your state banking or consumer protection agency for more information.

Fraudulent New Accounts

: Under most state laws, you are not liable for any debt incurred on fraudulent accounts opened in your name and without your permission.

Other Federal Rights


Identity theft victims have other rights when the identity thief is being prosecuted in federal court. For example, under the Justice for All Act, the U.S. Department of Justice says identity theft victims have the right:

  • to be reasonably protected from the accused;
  • to reasonable, accurate, and timely notice of any public court proceeding, any parole proceeding involving the crime, or any release or escape of the accused;
  • to not be excluded from any such public court proceeding unless the court determines that the identity theft victim’s testimony would be materially altered if he or she heard other testimony at that proceeding;
  • to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding;
  • to confer with the attorney for the government in the case;
  • to full and timely restitution as provided in law;
  • to proceedings free from unreasonable delay; and
  • to be treated with fairness and with respect for his or her dignity and privacy.

References:
FDIC: Identity Theft & Fraud
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